I would like to comment on your article titled "Ontario needs to press reset on the forestry sector” and add some additional information from my research on the Impacts of pulp mill closures in Espanola and Terrace Bay, Ont.
First, I thought the article was well written and right on target with their statement, “Sustainably produced forest products are climate-friendly, in demand, and can provide a much greater contribution to Ontario’s economy than they do now.”
I also want to applaud the government’s recent announcements on their investments into developing a bioeconomy from forest products. It would be great if the mills in Espanola and Terrace Bay could somehow be retooled to utilize this new technology.
I know most people in Ontario don’t fully understand the full impacts that the closing of these two mills will have. Usually only the direct job losses are reported. This is what I have been able to determine (from government published reports) and the costs and labour using local harvesting experience.
The market loss with Domtar Espanola, announced Sept. 6, 2023, amounts to 450 direct jobs:
- Domtar’s mill in Espanola used approximately 308,193 cubic metres per year (2018-2019).
- This works out to 43 jobs per year to harvest, process, and haul this volume and a loss of $4.28 million in wages annually.
- The Nipissing Forest will average an 18 per cent market loss based on the volumes delivered to Espanola over the last 10 years.
- The Sudbury Forest will average a 15 per cent market loss based on the 2020-2021 annual report.
- The North Shore Forest will average a 23 per cent market loss based on the 2020-2021 annual report.
The market loss with AV Terrace Bay, announced Jan. 5, 2024, amounts to 400 direct jobs
- AV’s mill in Terrace Bay used approximately 757,924 cubic metres per year (2019-2020).
- This works out to 105 jobs per year to harvest, process, and haul this volume and a loss of $10.53 million in wages annually.
- The Pic Forest will average a 43 per cent market loss based on the 2020-2021 annual report.
- The Kenogami Forest will average a 44 per market loss based on the 2020-2021 annual report.
- Excess wood chips from local sawmills, in both areas, will also threaten their financial sustainability.
As to the forest impacts:
- Stands with a high percentage of pulpwood will need to be bypassed by the harvesters as there would be insufficient profit from the low percentage of sawlog material to cover the harvesting and road construction costs.
- Many management objectives in the applicable forest management plans will not be met, such as the creation of younger stands to support those species that require that type of habitat (white-throated sparrows, beavers, etc.). Also, many of the economic objectives to provide employment will also not be achieved. The sustainability of the forest will be questioned.
- The loss of renewal trust dollars from the pulpwood volumes will limit silvicultural treatment options — there will be less planting and more reliance on natural regeneration. Many planned silvicultural objectives will not be achieved.
- As stands are left unharvested, they will grow older and there will be a greater risk of forest fires.
- Harvested areas where the pulp has been left on site will be more expensive to site-prepare and there will be few plantable sites in the area.
Peter Street, RP.F.
Edge Forestry Consulting Ltd., Callander, Ont.
