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Ainsworth Lumber Co.
Vancouver-based Ainsworth Lumber Co. is interested in building a $250-million oriented strand board (OSB) plant northeast of Winnipeg, to produce a plywood-like product used in home building for roofing, walls and floors. Ainsworth is the fourth largest producer of OSB in North America with plants in Minnesota, Alberta, British Columbia and Ontario.
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The May 2006 announcement regarding the project was the result of a March 2005 request for proposals from the Manitoba Government. The First Nations Forestry Limited Partnership (FNLP), a consortium of Aboriginal communities located in Manitoba's Interlake and east of Lake Winnipeg, is also seeking an industry partner to develop hardwood inventory in the region.
Ainsworth was the successful respondent and talks began among the company, FNFLP and the Manitoba Government. Apparently none of the companies currently operating mills in Manitoba responded, including Louisiana Pacific - which operates an oriented strand board on the west side of the province.
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The First Nations Forestry Limited Partnership consists of:
- Berens River First Nation
- Bloodvein First Nation
- Brokenhead First Nation
- Dauphin River First Nation
- Fisher River Cree Nation
- Lake Manitoba First Nation
- Peguis First Nation
- Sagkeeng First Nation
- Jackhead (Kinonjeoshtegon) First Nation
- Skownan First Nation (Waterhen)
- Pinaymootang First Nation (Fairford)
- Little Saskatchewan First Nation
- Shoal Lake Band #40
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Very little information has been made public as of March 2007 regarding the Ainsworth OSB venture. What is known about the proposed venture is that:
- although Ainsworth is committed to building the Manitoba plant, it intends to complete capital projects already underway before it starts on new plants
- the plant will create an estimated 350 direct and 280 indirect jobs
- Ainsworth agreed to partner with the FNFLP
- The FNFLP members are in negotiations to own up to 25% of the OSB plant, which could entail capital investments of 25% for both equity and debt - approximately $62.5 million
- working with First Nations was a condition of bidding on this possible mill, and fiber agreement.
- the province has agreed to allocate 838,000 cubic metres of hardwood each year, in a renewable 20-year license (this volume equates to almost 21,000 40-foot shipping containers)
- the fiber allocation will come from existing forests designated for logging (much of the areas in southeastern Manitoba are logged only for softwood trees, leaving hardwoods behind; OSB uses only hardwoods such as birch and poplar)
- a mill location near Selkirk Manitoba is rumoured
- Ainsworth will be required to obtain a forest management license and environmental license for both the mill and woodlands operation. which will also involve public hearings
- constitutionally required consultations with First Nations will occur because much of the hardwood in question is on traditional land.
- protected areas networks are not completed in the natural regions affected by the intended mill. Over 25 candidates for protection signed off for protected status by the mining industry and Tembec has been waiting since 2002 for protected status.
- Manitoba's NDP government has promised in both of the last provincial elections that protected areas networks would be in place prior to any new forestry licenses.
What is not known about the Ainsworth OSB plant, agreements, etc.:
- details regarding the geographic extent of the new forest management licence (FML), in relation to existing quotas, FML wood permits for softwood, some hardwood
- details regarding where the hardwood would be harvested from, relative to the locations of the 13 FNFLP First Nations, or other First Nations who may not be participating
- details regarding agreement(s) being negotiated between Ainsworth and the Government of Manitoba and between Ainsworth an the FNFLP
- details regarding timelines for environmental review and licensing process, and for constitutional consultations with affected First Nations
 Download May 11, 2006 Ainsworth Lumber Co. press release (PDF)
View May 15, 2006 transcript of the Legislative Debates on Ainsworth
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 2002-2014
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