Wood supply competition launched in Ontario

Nov. 27, 2009, Toronto – The Ontario government has launched Stage II of its Provincial
Wood Supply Competitive Process to help foster a stronger, more diversified
forest sector. Proposals are currently being accepted for the use of about 11
million cubic metres of wood, about one-third of the existing wood supply
identified in Forest Management Plans. They will be evaluated on a number of
criteria, including fostering effective, cooperative relationships between
industry and Aboriginal communities. Proposals must be submitted by March 4,
2010.

Stage I, the Request for Expressions of Interests, was launched in January 2009 to help
determine if a wood supply competitive process was warranted. The response was
overwhelming, attracting 131 submissions from Canadian and international
proponents, with proposals related to biofuels, biochemicals, wood pellets,
heat and power projects, composites, and other value-added uses.

Stage II is open to any proponents interested in using Crown wood supply and investing
in Ontario. This includes existing forest companies that are interested in
expanding their current wood supply or exploring new markets and business
opportunities. Forest companies with idle processing or manufacturing
facilities may also choose to participate to demonstrate their desire and
commitment to reopen and resume using wood supplies.

The wood will come from 41 forest management units in Ontario, with the majority in
northern Ontario. Part of the wood supply in this competitive process will come
from harvest residues such as tree tops and irregular limbs that can be used to
support Ontario’s emerging bioeconomy sector, for example, to produce wood
pellets for energy.

Information sessions are scheduled for Kenora, Thunder Bay, Sault Ste Marie, Timmins, and Pembroke
in December 2009.