NEW FORESTRY PARTNERSHIP IN LA RONGE

An important component of Saskatchewan's forest development plan was

launched today at a community event in La Ronge. Zelensky Brothers

Sawmill and the Lac La Ronge Indian Band announced their plans to

build a new sawmill near the community. Economic and Co-operative

Development Minister Janice MacKinnon and Northern Affairs Minister

Keith Goulet welcomed the announcement of a $15 - 20 million

investment that will create 600 direct and indirect jobs.



"The new mill at La Ronge represents an economic boost for the

community, the north and the province," Goulet said. "By involving

northern companies and communities as full partners in forest

development projects, the government's allocation policies will ensure

that forestry is a vibrant part of the northern economy, creating

business and employment opportunities for northern people."



MacKinnon said, "Under their new licensing agreement, the partners

will be responsible for managing all aspects of their wood supply,

from environmental assessments through harvesting to replanting. This

is a prime example of how 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 former Weyerhaeuser Forest Management Area (FMA) contingent

on the partnership finalizing a community involvement plan,

developing timelines for construction and receiving all necessary

environmental approvals. The wood supply is located in the area

around La Ronge excluding the Nemiebem block and does not extend

north of the Churchill River.



"We are pleased that the province has recognized that the people

who live in the local communities should gain some of the

benefits from the development of the forestry resources," said

Chief Harry Cook of the Lac La Ronge Indian Band.



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 people of northern Saskatchewan can be very proud of their

northern leaders and representatives," Brian Zelensky, President

of Zelensky Brothers said. "The work they and the government of

Saskatchewan have done will give northern people local management

of the forest resource and sustainable jobs for the future

generations."



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 & Co-operative Development

Regina

Phone: (306) 787-1691



Brian Cousins

Office of Northern Affairs

La Ronge

Phone: (306) 425-4216