NEW FORESTRY PARTNERSHIP FOR NORTHWEST SASKATCHEWAN

An important component of Saskatchewan's forest development plan was

launched today at a community event in Beauval. North West

Communities Wood Products Ltd. provided details of its plans to build

a new sawmill near Beauval. Economic and Co-operative Development

Minister Janice MacKinnon and Northern Affairs Minister Keith Goulet

welcomed the announcement of an investment of $11 million to

$15 million that will create 500 direct and indirect jobs.



"This major new project marks the beginning of an exciting new era in

forestry development involving northwest Saskatchewan communities,"

Goulet said. "The government's wood allocation policies are ensuring

that forestry will be a vibrant part of the northern economy, creating

business and employment opportunities for northern people."



MacKinnon said, "This partnership represents a major initiative by the

communities of Beauval, Green Lake, Ile a la Crosse, Patuanak and

Pinehouse. By making better and smarter use of our forest resource,

we can create thousands of new jobs and opportunities while still

preserving our precious forests."



The new project will process 200,000 cubic metres of wood per year

from the Besnard Timber Supply Area north and east of Beauval. The

allocation is contingent on the partnership finalizing a community

involvement plan and receiving all necessary environmental approvals.



"The forest resources of the area possess the potential to

provide significant economic activity in the surrounding

communities," said Rick Sanderson, President of North West

Communities Wood Products Ltd. "Our goal is to grow from

processing lower valued products such as studs to developing a

value-added industry that better utilizes the resource. The

company and its partners will proceed in that direction at a pace

that will allow sufficient time for local people to acquire

management, forestry and manufacturing skills."



An important component of the forest development plan is that

environmental sustainability will be the foundation for growth in

the forestry sector. The new Forest Resources Management Act and

regulations which came into effect on April 1, 1999 will ensure

that activities in the forest are sustainable over the long term

and that the health of the ecosystem is protected.



The partnership is part of an expansion of the forest industry in

Saskatchewan that will result in the creation of as many as

10,000 direct and indirect jobs over the next three years.

Additional jobs are expected in manufacturing, agro-forestry and

research and development over the next 10 years. There will also

be more than $850 million of private sector investment in

forestry.



"This project is an expression of confidence in Saskatchewan's

economy by communities and industry," MacKinnon said. "It

reflects our commitment to a full-participation society where all

people can share in the benefits of our economic success."



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For more information contact:



Bob Ellis Brian Cousins

Economic & Co-operative Development Northern Affairs

Regina La Ronge

Phone: (306) 787-1691 Phone: (306) 425-4216