OSB mill construction set to begin in Prince Albert in 2025

By Nigel Maxwell

The stage has been set for an oriented strand board (OSB) mill to begin construction in Prince Albert.

Premier Scott Moe announced Thursday afternoon that the province has allocated nearly 1.2 million cubic metres of timber to One Sky Forest Products.

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“This allocation positions the industry to meet that growth target, working with Indigenous businesses and creating jobs for northern residents, further protecting and promoting Saskatchewan,” said Moe.

One Sky was formed in 2020 by Montreal Lake Business Ventures, Meadow Lake Tribal Council, Big River First Nation and Tatanka Oyate Holdings, who brought in Peak Renewables Ltd. – a British Columbia forest products company – as an industry shareholder.

“Everyone knows the demand to build more housing across North America. We believe we can help fill that market with OSB from One Sky Prince Albert,” said Brain Fehr, chairman of One Sky Forest Products.

“We have work left to do before we can start construction, and look forward to continuing to advance this project with our Indigenous partners, the community of Prince Albert, and the Government of Saskatchewan.”

The OSB plant, which was originally announced in 2021, will share a site with the Paper Excellence pulp mill.

OSB is an engineered wood panel, similar to plywood, which is commonly used in home construction for roof, wall and floor sheathing. Construction on the $400 million plant is anticipated to begin in 2025, with the opening slated for 2027. It’s expected to create an estimated 800 direct and indirect jobs.

Moe said the province set a target of doubling the size of Saskatchewan’s forestry sector by 2030 and encouraging Indigenous participation as part of the government’s Growth Plan. Indigenous Forestry Investments (IFI) will partner with One Sky on this project. IFI was formed by the Indigenous shareholders to provide ‘one unified voice’ for the communities they represent, as well as to provide clarity when seeking additional investors.

“Ownership means we will benefit from the wealth generated, create careers for our people, and involve our businesses in the supply chain,” Indigenous Forestry Investments Board of Directors Chair Gary Daniels said.

According to the government, Saskatchewan is leading the country in Indigenous involvement in the forestry industry. Currently, 32 per cent of the timber supply is allocated to Indigenous companies, and 27 per cent of forestry sector workers are Indigenous, which the government said are ‘by far the highest percentages in Canada.’

The forestry sector is the second-largest industry in the north, after mining.

What does this mean for the pulp mill?

The re-opening of the mill was first announced by Paper Excellence in February, 2021, and at the time had a tentative date of early 2023. In May, 2022, following a tour of the facility by Bronwyn Eyre, then minister of energy and resources, it was stated the mill’s re-opening would add almost 1,700 jobs directly and indirectly to the local economy.

Citing current market conditions, Fehr stated he does not believe for a minute the pulp mill will re-open.

“And if that’s bad, I am sorry, but I just don’t believe it myself,” he said.

Standing up in response, Moe noted the cyclical nature of the industry and stated the mill can still reopen and serve a purpose, given the fact that the general infrastructure is there, as well as the fibre.

“It’s got everything everyone needs to add more forestry and energy,” Prince Albert Mayor Greg Dionne added. “You gotta remember, there’s a beautiful co-generation plant there. We just need someone who knows how to run it.”

On Thursday night, Paper Excellence emailed a statement to paNOW and, citing market and economic conditions, confirmed the company will not proceed with plans to restart the Prince Albert pulp mill. Instead, the company has decided to explore options to divest the mill.