Premier Lorne Calvert, today announced a major forestry development for northwest Saskatchewan, including a $200 million Oriented Strand Board (OSB) mill and enhanced community-based wood allocations.

A partnership including Tolko Industries Ltd., Meadow Lake Tribal Council (MLTC), Northwest Communities Wood Products Ltd. (NWC) and Crown Investments Corporation (CIC), will spend the next few months determining the most suitable site for the OSB plant, to be built near Meadow Lake. Construction is expected to begin in the spring of 2002. When complete, the mill will employ 130 people, with an additional 130 jobs in associated woodlands activities such as harvesting and trucking.

"Two years ago we announced our plan to expand Saskatchewan's forest industry," Premier Calvert said. "Our goal was, and still is, sustainable economic development that includes Aboriginal and northern communities. Today, we celebrate a major step toward that goal, for the northwest and for the province as a whole."

Through this unique partnership, linking established forest companies, First Nations and northern community businesses and government, Tolko Industries will have 75 per cent ownership of the mill, with MLTC, NWC and CIC owning the remainder. Financing details are still being finalized. Tolko will be the operating partner.

NWC, a partnership of Beauval, Green Lake, Ile-a-la-Crosse, Patuanak and Pinehouse, has also received an expanded wood allocation. The company's future Forest Management Agreement (FMA) area has grown from 600,000 hectares to 780,000 hectares. The NWC is working with Saskatchewan Environment and Resource Management (SERM) to update inventory information for the area. The expanded area will help facilitate the company's other ventures, including a sawmill planned for Beauval, three post plants, a hardwood sawmill to be developed in three phases and a lumber finishing facility at Green Lake.

The province ensures environmental sustainability of forestry developments by applying the best available forest management science and by thorough consultation with all stakeholders.

The next phase of forestry developments will focus on building the province's forestry related secondary manufacturing and knowledge-based industries. Opportunities to enhance the available wood fibre supply will be explored, including: industrial users for softwood chips and wood residue, agroforestry and improved forest fire protection.

Since April 1999, the private sector has invested nearly $650 million in Saskatchewan, modernizing and diversifying the province's forest industry.

Les Cooke
Environment and Resource Management
Regina
Phone: (306) 787-8865