White birch is being opened up for use in the Thunder Bay-Atikokan area, marking what could potentially be a financial windfall for some forestry companies in northwestern, Ontario.
The Ministry of Natural Resources has officially begun requesting proposals for the use of 300,000 to 400,000 cubic metres of related forest in the area, which stretches from Nipigon on its eastern edge to Sioux Lookout, Ignace and Atikokan, on its western border.
“There’s an opportunity to use an unutilized species, and there’s been some interest in it,” says Mike Davis, forestry specialist with the Ministry of Natural Resources.
“It’s there and it’s available, and if it can create new opportunities, then great.”
As of October 6, companies have been able to submit their ideas and business plans to the ministry through the use of a prospectus.
The deadline date has been set to 60 days. Examinations may be made in early December, with expected announcements in the spring of 2007.
The final division of the resource will ultimately depend on the nature and quality of the submissions, says Davis.
Single large companies or any number of smaller enterprises may end up with the harvesting rights.
With many Northern forestry companies being driven out of the area due to energy prices, a strong Canadian dollar and the high cost of fibre, Davis says, the province saw an opportunity to assist the industry.
“We need to build a healthier forest sector in Ontario,” he says.
The province is attempting to be specific about who may attempt to make use of this particular resource. On top of adhering to land use regulations, the successful licensee will have to guarantee not only the economic viability, but also the ecological sustainability.
Potential applicants must also be able to ensure their work would provide tangible benefits to northwestern Ontario, and that it would involve a variety of agreements and partnerships with local communities including First Nations.
Davis says the process has involved various segments of northwestern Ontario, from municipalities, to First Nations communities, to existing forestry companies.
Information sessions have also been held to make the public more aware of the program’s potential. Response so far has been positive, he says, and the system’s transparency through its use of specific criteria has helped.
The plan is similar to another effort by the ministry to make available six management units of conifer within the Kenora, Red Lake and Dryden districts. Companies seeking licensing will have to adhere to the same criteria before mill expansions are approved.
These projects would have particular benefits for companies in the North, according to one representative from Flakeboard Co., located in Sault Ste. Marie.
“Having residual sawdust would be fantastic,” says wood procurement specialist Jeff Ferguson.
“We’re looking more to wood residuals, and our preferred is sawdust, so if it was close enough to the Sault or plant processing, that would be a winner for us.”
Transportation costs in particular tend to pose financial challenges. From a geographical perspective some companies have found it to be unprofitable to transport resources from afar.
Ferguson says at-hand accessibility to this type of material would prove to be a significant boon for companies that make use of wood chips, sawdust, and value-added products.
The added benefits would stimulate some much-needed growth within the industry, Ferguson says.
“This essentially creates some jobs. This goes back to our core business in the North, which is raw materials. With potential talk of mill closings and unemployment, it’s great if we can create a few jobs.”
