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

Created: February 2011 Introduction and Overview Mistik Management Ltd.

Created: February 2011 Mistik Management Ltd.

Created: February 2011 Mistik Management Ltd.

Created: February 2011 Mistik Management Ltd.

Created: February 2011 Mistik Management Ltd. Forestry company Formed in 1990 Meadow Lake, Saskatchewan 11 staff 1.8 million ha license area 1.2 million m 3 /yr

Created: February 2011 Mistik Management Ltd. MLMP – a world-class facility The highest production BCTMP mill in the world

Created: February 2011 Mistik Management Ltd. NorSask – a world-class facility The largest First Nation-owned sawmill in Canada

Created: February 2011 Mistik Management Ltd. Mistik Governance (Board of Directors) MLTC – 4 members (3 Designates + Mill Manager) MLMP – 4 members (3 MLMP + Mill Manager)

Created: February 2011 Mistik’s mandate

Created: February 2011 Forestry overview ~ Pre-1970 Widespread, small-scale ‘mom and pop’ logging of large spruce and pine ~ early 1970s Start of larger scale forestry operations ~ 100 to 200,000 m 3 /yr Softwood sawlogs and softwood pulplogs targeted for harvest 1992 to Present Full utilization of the timber resource both softwood and hardwood

Created: February 2011 Mistik Management Ltd.

Created: February 2011 Forest certification ISO CSA Z809 FSC

Created: February 2011 Communities ~ 33 communities within and adjacent to the Mistik FMA area (~ 20,000 people) 14 First Nation (4) 7 Métis (5) 12 Agricultural (7)

Created: February 2011 Mistik’s employment statistics ~ 60% to 70% of Mistik’s workforce is Aboriginal

Created: February 2011 Mistik’s forestry operations Building a successful forestry contractor workforce

Created: February 2011 Mistik FMA Area Employment 61% 17% 10% 8% 4% 0% Mistik operations overview

Created: February 2011 Mistik operations overview Road building

Created: February 2011 Mistik operations overview Road building

Created: February 2011 Mistik operations overview Log haul

Created: February 2011 Mistik operations overview Silviculture – cone picking

Created: February 2011 Mistik operations overview Silviculture – tree planting

Created: February 2011 Mistik’s ecomomic statistics Economic Benefits Annual basis: ~ $40 – 50 million paid out to various gov’t agencies, contractors and vendors per year

Created: February 2011 Case study – Canoe Lake MU Community economic development Pre-1992 Widespread, small-scale ‘mom and pop’ logging of large spruce and pine 1992 Wiggins Bay Blockade – ‘Protectors of Mother Earth’ 1993 to Present Community-based forestry

Created: February 2011 Case study – Canoe Lake MU Community economic development

Created: February 2011 Case study – Canoe Lake MU Community economic development Three communities Conventional logging Co-management board 1993-Present

Created: February 2011 Case study – Canoe Lake MU Community economic development Shifted 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

Created: February 2011 Case study – Canoe Lake MU Community economic development Paul

Created: February 2011 Case study – Canoe Lake MU Community economic development Fred

Created: February 2011 Case study – Canoe Lake MU Community economic development Alex

Created: February 2011 Case study – Canoe Lake MU Community economic development

Created: February 2011 Case study – Canoe Lake MU Community economic development Vital

Created: February 2011 Case study – Canoe Lake MU Community economic development

Created: February 2011 Case study – Canoe Lake MU Community economic development Billy

Created: February 2011 Case study – Canoe Lake MU Community economic development

Created: February 2011 Case study – Canoe Lake MU Community economic development Robert

Created: February 2011 Case study – Canoe Lake MU Community economic development Sonny

Created: February 2011 Case study – Canoe Lake MU Community economic development

Created: February 2011 Case study – Canoe Lake MU Community economic development

Created: February 2011 Case study – Canoe Lake MU Principles 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

Created: February 2011 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 significant effort and flexibility in maintaining local community and contractor involvement Financial / admin assistance

Created: February 2011 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

Created: February 2011 Co-management contribution – Mistik pays $0.50/m 3*** (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

Created: February 2011 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

Created: February 2011 Thank You Mistik Management Ltd.