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Provincial Wood Supply Competitive Process

Update - Stage II

This page was updated on September 12, 2011

The Ministry of Northern Development, Mines and Forestry has completed the Stage II: Provincial Wood Supply Competitive Process. All wood supply allocations are contained in the following archive of Successful Proponents - 2011. Ontario issued 46 wood supply offers, of which 42 are summarized in the following report of Final Wood Supply Offers by Management Unit. The other 4 offers will not be proceeding due to various factors.

The Ministry believes it has the right mix of initiatives to achieve its stated goal of putting Ontario’s wood back to work and strengthen the existing industry through innovation, integration and diversification. The response to this competition has shown the tremendous initiative and optimism of Ontario’s forest industry.

This competition brought forward many good proposals which, in some cases, were competing for the same wood. The Ministry values the participation of all proponents and recognize the effort put into all the proposals. Unsuccessful proponents were offered the opportunity for a de-briefing session in which they were informed of the results of the evaluation of their proposal.

Background

Crownwood Image

The ministry launched the Stage II: Provincial Wood Supply Competitive Process on November 26, 2009 with the goal to attract new investment in the forest sector, support new and innovative ventures to stimulate Ontario’s economy and build an industry of top performers – both existing and new.

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 to confirm and demonstrate their commitment to re-open and resume use of wood supplies.

This was a bold initiative to preserve and create jobs, and generate wealth for Ontarians and we were pleased to have received 115 submissions by the March 31, 2010 closure deadline.

The forest sector and the many people who rely on it understand the need to transform Ontario’s forest sector, and expect government to act decisively. A significant part of Ontario’s wood supply is not being used by existing industry. This competition was designed to put people and wood to work and identify companies who could use this wood.

The Wood Supply Competitive Process has been overseen by an independent Fairness Commissioner and followed a rigorous evaluation and selection process. This has helped ensure all activities were carried out with fairness, openness, transparency, and in compliance with the process set out in November, 2009.

Submissions were evaluated against pre-established criteria such as financing, economic viability, operating feasibility, wood supply, Aboriginal benefits, management experience, and social, economic and environmental benefits. These criteria were set out in the following document:

The selection process and some of the decisions have been difficult, but in the end successful proponents have been chosen based on the merits and strengths of their proposals – based on the overall benefit for Ontario.

The goal of this competition is to build an industry of top performers. We want to support solid, innovative initiatives that will strengthen our forest industry and we believe clearly put us back on a back to a thriving forest products sector in Ontario.”

Minister of Northern Development, Mines and Forestry
Michael Gravelle

Bridging to a new Tenure System

As you know, we are modernizing the tenure and pricing system, a further step that’s critical to putting the industry back on a solid economic footing. This will take time and forest sector communities cannot wait for the completion of the modernization.

While any awards that result from this competition may be affected by the outcomes of the tenure modernization, the Ministry is committed to ensuring that both remain aligned, including developing provisions that provide a measured and responsible transition to a new framework.

Successful Proponents - 2011

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