Longlac Wood Industries Inc. - Licence for a forest resource processing facility

Update

This notice was initially published on the old registry as registry # IB04E1010 and republished on June 8, 2006 to advise the public that the proposal is still being considered. No additional opportunity to comment is being provided.

As a result of concerns being expressed regarding the potential effect of the Longlac Wood Industries oriented strand board proposal on the existing wood supply for other mills in the area, the Minister of Natural Resources requested an independent review before making any decisions on the issuance of the forest resource processing facility licence. On April 28, 2005 the findings of the independent review were made available to the public. Based on the report, the Ministry has given LWI until March 31, 2006 to submit their final business plan.

The Minister expects to make a decision about issuing a facility licence to Longlac Wood Industries to construct a new facility and whether to proceed with four new protected areas in spring 2006.

This notice was re-published May 24, 2005 to provide an update on the status of the proposal. No additional opportunity to comment is being provided.

Description of instrument

Longlac Wood Industries has submitted a proposal to the Ministry of Natural Resources for the construction of a new oriented strand board mill in the community of Greenstone. Longlac Wood Industries is planning to replace an old plywood mill and waferboard mill in Longlac with a new oriented strand board plant in the Greenstone area. This will mean a phasing out of plywood and waferboard production in the community accompanied by the construction and start up of a new, efficient mill to produce oriented strand board. The MNR recognizes the important role a healthy forest industry plays in Northern Ontario and is currently reviewing Longlac Wood Industries' business plan and proposed wood supply.

Longlac Wood Industries has been operating in the region for the last 40 years and its current Ontario operations include a plywood mill at Longlac, a waferboard mill at Longlac, and a remanufacturing plant at Mississauga.

Longlac Wood Industries is working with the Municipality of Greenstone to secure an appropriate location for the new oriented strand board mill.

The Longlac Wood Industries proposal includes:

• the construction of a new oriented strand board mill in the Community of Greenstone
• capital expenditures estimated at $235,000,000
• a wood supply requirement of 940,000 cubic metres per year of poplar and white birch
• the production of commodity grade oriented strand board and oriented strand board for DRICore board production at the Longlac Wood Industries remanufacturing plant at Mississauga
• a proposed start up date in 2007
• a permanent shut-down of the existing operations at the plywood and waferboard mills at Longlac once the new oriented strand board mill starts up

Proposed Wood Supply:

Currently the Longlac Wood Industries plywood and waferboard mills utilize 489,000 cubic metres of aspen poplar that they receive from Crown commitments. Longlac Wood Industries has indicated that the new mill would require 940,000 cubic metres per year of wood fibre. To operate the new mill, Longlac Wood Industries has proposed to

• utilize the 489,000 cubic metres of aspen poplar volumes that are currently utilized by the Longlac Wood Industries plywood and waferboard mills
• obtain an additional volume of 451,000 cubic metres of poplar and white birch through business arrangements with licensees and private landowners

The MNR has been informed that the equipment in the Longlac Wood Industries mills is obsolete and in need of replacement. Longlac Wood Industries has made it clear to the MNR that they intend to close the existing facilities regardless. They believe that the only viable solution to maintaining a hardwood processing facility in Longlac is to build a new modern facility. This is a business decision made by the company. The new mill would meet higher environmental standards than the existing mills.

If approved, the construction of a new mill in the Greenstone area will continue to provide jobs and contribute to the economic health of that community. Also, the utilization of additional wood supplies will provide additional jobs in harvesting, road construction and transportation.

Relationship with the Ontario Forest Accord

This proposal for industry expansion is accompanied by efforts to ensure growth in parks and protected areas in order to meet the intent of the Ontario Forest Accord.

The MNR has worked in cooperation with the Partnership for Public Lands, the Ministry of Northern Development and Mines, the Ontario Prospectors Association, the Ontario Waterpower Association and the forest companies to develop potential protected areas. Four candidate areas totalling 14,700 hectares are proposed for protection and are subject to public review under a separate policy posting on the Environmental Bill of Rights registry (Registry Number: PB04E1009).

The total area of production forest affected is relatively small, 11,200 hectares. Longlac Wood Industries has agreed to transfer 11,250 cubic metres per year of their conifer Crown commitment to sustainable forest licensees as a result of this initiative.

Pursuant to the Crown Forest Sustainability Act, a forest resource processing facility (facility) licence, issued by the Minister, is required to authorize the construction of a new forest resource processing facility. The MNR is currently seeking feedback from the public on the proposal by Longlac Wood Industries.

Comments submitted in the format indicated below, will be taken into consideration by the MNR before a decision is made on proceeding with the issuance of a facility licence to Longlac Wood Industries for the construction of an oriented strand board mill.

Other information

Facility licence information is available from the MNR Geraldton Area Office. Making an appointment to view the information is recommended to ensure staff will be available to provide information and answer questions.

The Crown Forest Sustainability Act may be viewed at the web-link provided at the bottom of this notice.