Bankrupt Buchanan Forest Products forced to give up sustainable forest licenses in northwestern Ontario's Kenogami Forest; Crown now in process of revoking its licenses in Ontario's Ogoki Forest

Wendy Lisney

LOS ANGELES , October 29, 2012 (Industry Intelligence Inc.) –

Due to its bankruptcy, Buchanan Forest Products Ltd. has been forced to surrender its sustainable forest licenses for all major forests in northwestern Ontario, reported CBC News on Oct. 26.

The government’s policy is to revoke the licenses of insolvent companies, said a spokesperson for the Ministry of Natural Resources.

The Thunder Bay, Ontario-based company, which still owns sawmills in Longlac and Nakina, Ontario, did not return phone calls from CBC News seeking comment.

Buchanan could still secure the wood supply it needs, said Kathleen McFadden, acting assistant deputy minister with the forestry division of the Ministry of Natural Resources, CBC News reported. This could be done through business-to-business arrangements, or Buchanan could get the contract to harvest from any new forest license holder, she said.

In addition to conceding its right to the Kenogami Forest, Buchanan will have to give up its license in the Ogoki Forest this fall, a process that the crown has begun. Earlier this year, Buchanan gave up its rights to the Lac Seul Forest, CBC News reported.

Buchanan’s forestry operations disturbed about 70% of Kenogami Forest, resulting in the loss of wildlife habitat, said Richard Brooks, forest campaign coordinator for Greenpeace Canada, which has criticized Buchanan’s environmental and economic record.

With Buchanan’s forest licenses revoked, it opens up the opportunity for new management to initiate an approach to forestry that would be more economical and environmentally sound, said Brooks, reported CBC News.

The company failed to keep the Terrace Bay Pulp mill operating despite many millions of dollars in government aid, he said, blaming the mill’s downfall on Buchanan’s environmental history that drove away customers.

Brooks said that the company was bad at managing business, citing in general the sawmills that it has opened and closed over the past 20 years or so, CBC News reported.

The primary source of this article is CBC News, Toronto, Ontario, on Oct. 26, 2012.

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