The A.C. Forestry and Carrier Forest Products deal is expected to bring in an additional $1 million per year in lumber royalties. (File photo/paNOW Staff)

By Derek Cornet

lumber industry

A.C. Forestry inks deal with Carrier Forest Products

Feb 12, 2021 | 5:12 PM

A.C. Forestry has signed a major forestry agreement with Carrier Forest Products.

According to Agency Chiefs Tribal Council CEO Ken Thomas, the agreement allows Carrier to receive softwood saw log timber from the Sakaw Askiy Management area located near Big River. The allocation is part of the former Prince Albert Pulp Mill’s forest management area as it was split up between Carrier, Montreal Lake and Tolko.

“We got one of the best pieces, which is an area from Dore Lake to Meadow Lake and over to Big River and back down to Spiritwood where our office is located,” Thomas said. “It’s about 1.5 million acres and that allows us to cut up to 400,000 cubic meters per year. Half of it is softwood and half of it is hardwood.”

Thomas explained the 200,000 cubic meters per year of softwood will be delivered to Carrier over a five year span. He noted the deal also includes an increase in royalty payments from $3 per cubic meter to $8 per cubic meter. Thomas added that works out to an additional $1 million per year.

“It gives us a home for all the softwood we’ve been allocated, and then we get an extra $1 million per year in royalties. That will be split between the three shareholder bands,” he said.

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Carrier operates the Big River Sawmill which employs 90 people and provides more than 250 harvesting, trucking and reforestation jobs. The new agreement has been praised by several shareholders, including Witchekan Lake First Nation chief Anne Thomas.

“Agency Chiefs Tribal Council has a long-term bioeconomy strategy to create economic opportunities for our nations,” she said. “This agreement with Carrier Forest Products Ltd. allows our three nations an opportunity to create long-term employment and partnership opportunities.”

There will be announcement regarding the hardwood portion of the allotment in the near future.

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derek.cornet@jpbg.ca

Twitter: @saskjourno