Business

Conifex Timber seeks to reverse ‘moratorium’ on cryptocurrency mining in BC

Conifex Timber seeks to reverse ‘moratorium’ on cryptocurrency mining in BC

Conifex Timber Inc. has filed a petition in the Supreme Court of British Columbia seeking judicial review of the Lieutenant Governor In Council (LGIC) of British Columbia’s recent Order In Council (OIC) 692/20, which prevents electricity supply for cryptocurrency mining.

This OIC directs the British Columbia Utilities Commission to issue orders relieving the British Columbia Hydro and Power Authority (BC Hydro) of its obligation to supply service respecting cryptocurrency mining projects for a period of 18 months.

Conifex alleges that the OIC exceeds the statutory powers granted to the LGIC under the Utilities Commission Act, is discriminatory and breaches statutory and common law restraints on the LGIC’s delegated powers. Conifex is seeking an order quashing and setting aside the OIC as unauthorized or otherwise invalid.

As a result of the OIC, two of Conifex’s proposed high-performance computing (HPC) projects have effectively been paused, the company said.

Conifex has concurrently filed a notice of civil claim against BC Hydro in the Supreme Court of British Columbia seeking an order requiring BC Hydro to supply service to the HPC projects. The claim also seeks general damages against BC Hydro. The notice of civil claim alleges that BC Hydro’s failure and refusal to supply service to the HPC projects is in breach of BC Hydro’s common law obligation to supply electricity and unfairly discriminates against Conifex vis-a-vis other commercial customers.

More than 90% of BC Hydro’s generation is produced by hydroelectric power. The company generates more than 43,000 GWh of electricity annually to supply roughly 1.9 million residential, commercial and industrial customers.

“The OIC represents considerable government overreach. The Government is not entitled to disregard British Columbia law enacted by the legislative assembly acting on behalf of the people of British Columbia,” said Ken Shields, Conifex’s Chair and Chief Executive Officer. “The OIC was made without consulting the high-performance computing industry, First Nations or British Columbians at large. The OIC has not only harmed Conifex’s business prospects, but limits opportunities for British Columbians to participate in emerging new technologies that create employment and economic opportunity in hard hit resource dependent communities.”

Conifex has been working collaboratively with Tsay Key Dene Nation to develop and build HPC projects. Both Conifex and the Tsay Keh Dene remain committed to advancing their business of hosting high performance computers.

The OIC does not impact Conifex’s previously announced 3 MW HPC project, according to a release.

Conifex and its subsidiaries’ primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value-added lumber finishing and distribution. Conifex’s lumber products are sold in the U.S., Canadian and Japanese markets. Conifex also produces bioenergy at its power generation facility at Mackenzie, BC.