New Group In Northwest Looks For Manufacturing Partner
By 250 News
Monday, January 25, 2010 10:42 AM
Prince George, B.C.- There is a new forestry consortium in the northwest of B.C. which is looking for a major manufacturer to step forward.
Called the “Northwest BC Forest Coalition” this group of eleven forest tenure holders says it is “committed to negotiating long term wood fibre supply contracts with manufacturing investors coming to the Northwest region of B.C.”
The coalition is made up of:
- Coast Tsimshian Resources Limited Partnership
- Haisla Resources Limited Partnership
- Bell Pole / Forsite
- A&A Trading
- BC Timber Sales, Skeena Business Area
- Kalum Ventures Ltd. Partnership Inc.
- Kitselas Forest Products
- Dena Cho Industries Ltd.
- Canada Resurgence Developments Ltd.
- Gitxsan Forest Enterprises Inc.
- Terrace Community Forest
According to its website, the Coalition represents the majority of tenure holders in the region and “offers potential partners a wealth of experience in the forest industry. Our membership is eager to explore opportunities with interested investors that can deliver financial prosperity and be environmentally sustainable. With a collectively very large fibre basket, Coalition members are eager to work with interested parties in exploring and cultivating forestry opportunities.
The formation of the Coalition could be positive news for the Eurocan mill in Kitimat. Scheduled to close at the end of this month, with the last of the near 600 employees expected to put in their final shut down shift by mid February, any future prospects for the mill are tied to a secure, affordable fibre supply.
“This Consortium could make fibre available to Eurocan” says Minister of Forests and Range Pat Bell, “Our take on the Eurocan situation is that fibre supply is not a challenge to Eurocan, but the fact that we’ve been able to pull this consortium together and provide a significant amount of timber for new manufacturing opportunities would be key to the long term of the Eurocan operation.”
The Consortium has a combined tenure of just under 3 million cubic meters a year. That does not include the potential for additional biomass that could be accessed from the forests in the region.
The Consortium is looking to reach long-term agreements for greater than 60% of this volume, with the balance available through BC Timber Sales.
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Posted by: woodchipper on January 26 2010 4:30 PM
Their best bet is to get financing of their own for pellet plant operations... low environmental impact, thus speedy implimentation of role out, and a high volume throughput of what can essentially be a split off product that can enable a potential rebirth of primary forestry operations like 2x4 mills, plywood plants, fiberboard plants... all of which are not competitive without the split off resource market active in the area.