Northwestern Ontario First Nations sign agreement to supply timber to Nakina sawmill

A partnership of three northern Ontario First Nations says it has reached an agreement with anarea mill operator to supply wood to a recently re-started sawmill in the Greenstone region.

The Agoke Lumber Limited Partnership, a forestry company that consists of Aroland, Eabametoong and Marten Falls First Nations, signed the joint venture agreement with Nakina Lumber Inc., the partnership announced Friday.

The agreement allows access to the "multi-million dollar forest sector in northwestern Ontario," according to a written release.

• Northern Ontario First Nations sign Ogoki forest management deal

"Now that we have the timber, we needed a consuming mill to take our timber," said Bill Spade, a director with the corporation set up by the First Nations' partnership. "So that's why we established this agreement with Nakina mill so that we have a place to sell timber."

The Agoke partnership has the forest resource license to harvest wood from the Ogoki Forest.

The mill, which had been closed for nearly 10 years, reopened in January, when the partnership began supplying wood, Spade said.

• Nakina Lumber Inc. taking first steps to re-opening

Mark Bell, president of Agoke Development, said the opportunity will create more jobs for, and provide another revenue opportunity to, First Nations communities.

"This [joint venture] agreement is part of an over-arching Agoke strategy that will help us continue to ensure that local forest resources are protected, managed and developed for the mutual benefit of our First Nation partners and peoples," he was quoted as saying in the press release.

The deal comes at an important time for the lumber industry, the partnership said, citing lumber demand in the United States, tariffs, forest fires in western Canada and rail transportation issues creating a need for the product.

The parties involved in the agreement said they hope this opportunity will open up possibilities for the U.S. housing market.

60 people are currently employed at the Nakina mill, Spade said. The partnership's release said it hopes to see the creation of 150 new jobs and another 150 woodland operation jobs.