Created: February 2011 Perspectives on community-based forestry in the Mistik FMA area April 2015

Created: February 2011Created: February 2011

Perspectives on community-based forestry

in the Mistik FMA area

April 2015


Introduction and Overview

Mistik Management Ltd.









• Forestry company

• Formed in 1990

• Meadow Lake, Saskatchewan

• 11 staff

• 1.8 million ha license area

• 1.2 million m3/yr


Mistik Management Ltd.MLMP – a world-class facilityMLMP – a world-class facilityThe highest production BCTMP mill in the worldThe highest production BCTMP mill in the world


Mistik Management Ltd.NorSask – a world-class facilityNorSask – a world-class facilityThe largest First Nation-owned sawmill in CanadaThe largest First Nation-owned sawmill in Canada



Mistik Governance (Board of Directors)Mistik Governance (Board of Directors)

MLTC – 4 members (3 Designates + Mill Manager)MLTC – 4 members (3 Designates + Mill Manager)MLMP – 4 members (3 MLMP + Mill Manager)MLMP – 4 members (3 MLMP + Mill Manager)


Mistik’s mandate


Forestry overview

~ Pre-1970 Widespread, small-scale ‘mom and pop’ logging of large spruce and pine

~ early 1970s - 1992Start of larger scale forestry operations ~ 100 to 200,000

m3/yrSoftwood sawlogs and softwood pulplogs targeted for

harvest

1992 to PresentFull utilization of the timber resource both softwood and hardwood




Forest certification

ISO 14001 CSA Z809

FSC


Communities

~ 33 communities within and adjacent to the Mistik FMA area (~ 20,000 people)

• 14 First Nation (4)• 7 Métis (5)• 12 Agricultural (7)


Mistik’s employment statistics

~ 60% to 70% of Mistik’s workforce is Aboriginal


Mistik’s forestry operations

Building a successful forestry contractor workforce


34,930

9,510

5,783 4,7852,430

1500

5,000

10,000

15,000

20,000

25,000

30,000

35,000

An

nu

al P

erso

n D

ays

Harves

t

Haul

Road

Silvic

ulture

Load

Supervi

sion

Forestry Work Type

Mistik FMA Area Employment61%

17%

10% 8%

4%0%

Mistik operations overview



Road building



Road building



Log haul



Silviculture – cone picking


Mistik operations overviewSilviculture – tree planting


Mistik’s ecomomic statistics

Economic Benefits

Annual basis:

• ~ $40 – 50 million paid out to various gov’t agencies, contractors and vendors per year


Case study – Canoe Lake MUCommunity economic

developmentPre-1992 Widespread, small-scale ‘mom and pop’ logging of large spruce and pine

1992Wiggins Bay Blockade – ‘Protectors of Mother Earth’

1993 to PresentCommunity-based forestry


Case study – Canoe Lake MU

Community economic development



Community economic developmentThree communities

Conventional logging

Co-management board 1993-Present



Community economic developmentShifted from conventional logging to

mechanized logging

Using existing long term contractors

Contractors becoming more specialized

Distributing the economic benefits to individuals and communities

Opening the door for future opportunities



development Paul



development Fred



development Alex



development



development Vital



development



development Billy



development



development Robert



development Sonny



development



development


Case study – Canoe Lake MUPrinciples of forestry business

development

• It all takes time – ‘evolution’ vs. ‘revolution’

• ‘Grassroots’ involvement (community decision making)

• Trust and relationship building vs. strictly business

• It does cost more $$

• Importance of lending institutions other than banks

• Maintenance of ‘low capital cost entry’ into the forest industry – single-phase contractors

• Supervision intensive


Fair industry-standard rates

The cost of wood is the largest cost to any sawmill

and one of the most significant to a pulp mill

NorSask and MLMP have shown significanteffort and flexibility in maintaining localcommunity and contractor involvement

Financial / admin assistance


• Operating Risk – Mistik utilizes a greater # of contractors than its industry peers – Mistik incurs somewhat higher supervision and administrative costs.

• Management Risk – due to strong public preference, Mistik has had to manage the FMA Area as ten (10) separate ‘community forests’ – these mirror the fur conservation area boundaries that have since turned into multi-resource use zones. This approach has imposed limitations on operational and economic efficiencies.

Financial / Admin Assistance


• Co-management contribution – Mistik pays $0.50/m3*** (market driven increases) for timber harvested within each northern ‘community forest’ (north of Meadow Lake). This money is used by the communities for whatever purpose they deem important.

• Administrative Assistance – Mistik has provided a variety of administrative assistance for contractors.

• Forest information – Mistik routinely freely gives out maps, orthophotos and other forest-related information to the general public including trappers, outfitters, hunters, wildrice growers, etc.

Financial / admin assistance


• Educational opportunities – co-management meetings, workshops & field tours, certification training sessions, forestry worker safety training (Sask For Ind Safety Assoc), Alcott Demo Forest

• Ongoing employment opportunities – preference for FMA area contractors, a plus for NW Saskatchewan economy

Financial / Admin Assistance


Thank YouMistik Management Ltd.

Documents

Created: February 2011 Perspectives on community-based forestry in the Mistik FMA area April 2015