Wayned,

See what Lopez has said  this week. I dont see any comment related laws of the province in it !

and beleive me I know Tembec

 

MONTREAL - Tembec says a pullback in metal prices that prompted mining companies to slow down huge expansion projects in Quebec could help reduce mounting construction costs for the "game changing" Temicaming upgrade at its speciality cellulose mills.

The Quebec-based forest products company has put its most expensive capital spending project in years up for rebidding after high submissions forced it to delay construction last September.

The cornerstone of its two-phased upgrade is a $190-million installation of a high-pressure boiler and turbine that will raise its operating profits (EBITDA) by 40 to 50 per cent.

It has spent $78 million to date, but the planned May 2014 production start is being delayed because of difficulties in finding required construction workers at acceptable cost, CEO James Lopez said Thursday.

He said there has been a change recently because mining companies have altered their own expansion plans in the face of weaker prices for iron ore and other metals.

"We have people bidding on projects now that refused to bid when we went out six moths ago for the same construction project so I think the mining pullback is going to help us," he told reporters ahead of Tembec's annual meeting.

The project is key to the company's long-term success. Lopez said the company is willing to consider selling non-core assets as it focuses on energy projects and the specialty cellulose business that extracts from pulp material that is used in cosmetics, explosive and paint additives.