First Nations Partnerships from Forest Industry Opportunities

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1 First Nations Partnerships from Forest Industry Opportunities Presentation for Canadian Institute of Forestry Septiember16th, 2015

2 The Forest A Sustainable Foundation for the Health and Wealth of communities An opportunity to address the many needs of communities

3 The Challenge

4 The Opportunity

5 Ontario s Forest Sector Roadmap Getting Costs Down Increasing Value of Products Engaging Aboriginal Peoples in the Forest Economy Fostering Markets Lower Delivered Wood Costs Diversify Portfolio Through New Building materials & Sawmill of the Future Capacity and Expertise Building Develop Markets for Wood Reduce Energy & Transportation Costs Increase Lumber Recovery Link North & South Through Bio-chemicals. Business Development & Technical Support Address Challenges to Market Access and Acceptance 5

6 Partnerships

7 Where we have worked Whitefish River First Nation Sagamok First Nation Chapleau Cree First Nation Michipicoten First Nation Pic River First Nation Wikwemikong First Nation Cape Croker First Nation Bingwi Neyaashi Anishinaabek Pikangikum First Nation Dalles First Nation Muskrat Dam Naicatchewenin First Nation (Northwest Bay First Nation) Wabauskang First Nation Whitesand First Nation North Shore Tribal Council Nishnawbe Aski Nation Northeast Superior Regional Chiefs Forum 7

8 Helios Whitefish River First Nation Community-Based Partnership - Limited Partnership since % owned by WRFN - Main focus is on turn-key renewable energy, project management, and construction - Developed a four season greenhouse with Cambrian Innovates,Ontario Centres of Excellence (OCE) and Greenhouses Canada, 8

9 Marathon and Pic River First Nation Building an Integrated Economy Medium CHP consumes 80 truckloads of pellets to produce heat and power to community buildings Harvesting resources Sawmill using wood residues to produce heat and electricity, 9

10 A Partnership at Work Rainy River First Nations & Dale Kaemingh Presented by: Percy Champagne September 2015

11 Chief Jim Lenard & Dale Kaemingh Year of partnership

12 Partners In Manitou Forest Products 12

13 13

14 History 1975 to 78 Sawmill Kiln Planner Contract to produce rail car wood (poplar) 1979 closed for one year High interest rates, availability of capital and market conditions wood supply caused the mill to shut down. 14

15 Cost of Capital prohibited ongoing operation I was lucky with a 5 year 13% mortgage interest rate in 1978 on my first house 15

16 Fast forward to 2015 Log Supply 30Mm3 Sawmill 5 million board feet Planer mill New Value-added dry kilns Maintenance shop Rim Board processing for nearby OSB mill Dunnage for nearby OSB mill Product's are now value-added 16

17 Log Supply Red Pine White Pine Small amounts of ash and cedar 17

18 Sawmill Morbark debarker Morbark head saw Green chain sorting Precision edger Grade station 18

19 Planer mill In-feed 19 Out-feed sorting 2-Leadermac planer molders

20 Value added dry kilns SII Lumber dry kilns 20

21 Maintenance Shop Conventional lumber kiln converted 21

22 Rim Board & Dunnage for OSB mill In-feed panels Automated saw & edge spray line Manual bundle wrap 22

23 Dunnage Low grade panels are rip sawn stacked and stapled 23

24 Value-added products dimension lumber lap siding timbers s4s lumber 24

25 Value-added products pine and cedar indoor panels pine interior log paneling pine exterior log siding 25

26 Value-added products S4S dimension lumber Decking Exterior siding Interior paneling Timbers Core tray boxes Cedar paneling Ash flooring & interior paneling Floor and door trim (mouldings) Core box 26

27 Other Products Rim Board Stair Tread Dunnage stair tread dunnage rim board 27

28 How did they get here Common goals Focused leadership Market intelligence Secure wood supply Strategic capital deployment Contract services to nearby OSB mill Keeping the community politics from interfering with the business relationship Good communication skills Great community support with more than 50% of employees are from the community Capital availability Good relations with local and regional customers Partners share in profits 28

29 Key performance indicators Sales 5,000,000 + dollars Payroll 1,300,000 + dollars Annual average CAPEX 450,000 + dollars Community support Volunteers and financial support to sports and volunteer firemen 29

30 What does the future look like Continued market intelligence Strategic capital investment Ongoing cost control Considering Sawmill improvements Panel coating Always looking for additional vale-adding opportunities 30

31 Percy Champagne Carole Blaquiere Follow us on