<div><p>Canada's Newfoundland province said Tuesday it would take back the century-old hydroelectricity and timber rights of the forestry company AbitibiBowater after it closes its local mill next year.</p><p>Premier Danny Williams said the lucrative rights were tied to AbitibiBowater's continued operations in the province and now that it is closing its mill, must be axed.</p><p>This is "very simply about trees and water -- the most basic of all natural resources," said Williams. "Natural resources that rightfully belong to the people of Newfoundland."</p><p>"This company has been granted some very generous terms in the past, in order to ensure they continue operations in this province," he said.</p><p>"Now, through their decision to close their operations, they have effectively told the province that they are no longer willing to stand by their commitments."</p><p>And so, "we cannot as a government allow a company that no longer operates in this province to maintain ownership of our resources."</p><p>On Monday, AbitibiBowater announced it would close its Grand Falls-Windsor mill at the end of March after a century of operations, describing it as the highest-cost mill of its kind in North America. It employs 800 people.</p><p>There was no immediate reaction from the company to the expropriation plan.</p><p>Williams said the government would also seize control of AbitibiBowater's local power plants which feed hydroelectricity to the mill, but it would compensate the company for these infrastructure assets.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=38816489&bid=informcom" /></div><div id="copyright"><div>

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