The Vancouver-based integrated forest products company says the investment will include modifications and upgrades to the sawmill, kilns and planer.
The work gets underway this month and is expected to be completed by November.
"Our fibre supply in the Mackenzie region is strong and this announcement reflects confidence in our ability to operate an internationally competitive mill in this community," president and CEO Don Kayne said in making the announcement Friday.
The latest improvements bring to $600 million the value of the company's capital investments in its British Columbia solid wood, pulp and paper facilities over the last three years, Canfor said.
On the Toronto Stock Exchange, Canfor stock closed down 15 cents at $18.42 on Friday.