Ontario makes first wood supply offers

Dec. 13, 2010 – The Ontario Ministry of
Northern Development, Mines, and Forestry has made its first series of Wood
Supply Offers under the Provincial Wood Supply Competitive Process. The first
series of Wood Supply Offers, dated November 23, 2010, have been sent to the
initial group of successful proponents. The proponents will have 30 days
from the date of the offer to accept it. Once proponents accept the offer, the
Ministry will make that information public.

The Ministry is continuing to work through
the process and address technical details that will allow it to send out
additional Wood Supply Offers. Those offers will be announced over the coming
weeks and months as the details are worked out.

Ontario’s tenure and pricing system is also
under review; however, the review will take time, and forest sector communities
cannot wait for the completion of the review. The wood supply competition and
tenure reform are important steps to develop a stronger, more diversified
forest sector that includes biofuel and other value-added projects. While
awards that result from the Provincial Wood Supply Competitive Process may be
affected by the outcomes of the tenure review, the Ministry says it is
committed to ensuring that both remain aligned, including developing provisions
that provide a measured and responsible transition to a new framework.

The Stage II Provincial Wood Supply
Competitive Process was launched in November 2009 and closed March 2010, with
the goal of attracting new investment in the forest sector, supporting new and
innovative ventures to stimulate Ontario’s economy, and building an industry of
top performers. Stage II was open to any proponent interested in using
Crown wood supply and investing in Ontario, including existing forest companies
interested in expanding their wood supply and/or exploring new markets and
business opportunities. As well, forest companies with facilities currently
idle were welcome to participate. Submissions were assessed against
pre-established criteria such as financing, economic viability, wood supply,
Aboriginal benefits, management experience, and social, economic, and
environmental benefits.