NEW FORESTRY PARTNERSHIP IN NORTHEAST SASKATCHEWAN

An important component of Saskatchewan's forest development plan was

launched today at community events in Deschambault Lake and Creighton.

Ainsworth Lumber of Vancouver and the Peter Ballantyne Cree Nation

announced their plans to build new sawmills in the two communities.

Economic and Co-operative Development Minister Janice MacKinnon and

Northern Affairs Minister Keith Goulet welcomed the announcement of a

$73 million investment that will create almost 1,100 direct and

indirect jobs.



"These major projects are part of a new era in Saskatchewan forestry

development," Goulet said. "They give new momentum to developing a

stronger northern economy in full partnership with northern

communities."



"This announcement means jobs not only in the new mills, but also in

construction, forest management and harvesting and hauling

operations," MacKinnon said. "We are making better and smarter use of

our forestry resource so that we can create thousands of new jobs and

opportunities while still preserving our precious forests."



The partners have received a conditional allocation of wood from the

Amisk-Atik Forest Management Area (FMA) contingent on the partnership

finalizing a community involvement plan and receiving all necessary

environmental approvals. The allocation is located in the north-east

commercial forest zone around Deschambault Lake and Creighton.



"The Peter Ballantyne Cree Nation is very pleased that we will be

participating as full partners with government and Ainsworth

Lumber in the development of value-added products from forestry,"

said Chief Ron Michel. "The building of sawmills in Deschambault

Lake and Creighton will bring a measure of prosperity to our

communities and to the region."



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.



"We at Ainsworth Lumber are very pleased to have the opportunity

to become involved with these communities in Northern

Saskatchewan. These projects represent the beginning of the

utilization of the largely undeveloped resource in this region,"

said Allen Ainsworth, President of Ainsworth Lumber. "The

activities which follow will evolve into a much more

comprehensive effort, benefiting the whole province. We look

forward to a long and productive business relationship."



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, agri-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

Economic and Co-operative Development

Regina

Phone: (306) 787-1691



Brian Cousins

Office of Northern Affairs

La Ronge

Phone: (306) 425-4216