08:48 AM EDT, 06/13/2024 (MT Newswires) -- Conifex Timber ( CFXTF ) on Thursday said it will appeal a British Columbia court ruling that prevents a provincially owned power company from supplying it with electricity for a planned cryptocurrency business.

Vancouver-based Conifex, whose shares have dropped 60% over the past year due to weak lumber demand and low prices for forest products, had planned to open two high-performance computing data centers in northern B.C. to diversify its revenue streams. However, a 2022 ruling preventing the provincially owned power company, BC Hydro, from supplying electricity to cryptocurrency mining operations for 18 months waylaid the plans.

Conifex, which has a bioenergy division along with its forest-product operations, sought a judicial review of the provincial order in 2023, though its petition was dismissed by the British Columbia Supreme Court, which ruled a temporary ban on supplying power to the mining operations was valid. The company is now appealing that ruling.

"Conifex has not been provided any credible justification for allowing BC Hydro to deny service to our two HPC sites," Chief Executive Ken Shields said in a release. "With the large number of forest sector plant closures over the past few years, it is obvious that forestry companies need to diversify and strengthen their revenue streams to sustain operations. Successfully appealing the decision will provide us a clear path to resume work on initiatives that meet the social and economic expectations of our employees, contractors and shareholders, as well as residents of the communities where we operate."

No date for the hearing was provided.

Conifex also said it will suspend operations at its Mackenzie, B.C. sawmill and planer for two weeks beginning on June 17, due to "ongoing weather-related transportation challenges that have delayed spring log deliveries and resulted in lower than planned log inventories".

The company's shares closed up $0.015 to $0.48 Wednesday on the Toronto Stock Exchange.