Backgrounder - CanNor Invests in Northwest Territories Forest Industry

The Canadian Northern Economic Development Agency (CanNor), on behalf of the Government of Canada, provided a total of $80,000 to the Government of the Northwest Territories (GNWT) for three projects which support the growth and development of the territory's forestry industry.

This investment will assist the GNWT's exploration of local sources of bio-fuel, like wood pellets, and encourage sustainable local economies in small, forest-situated communities.

In the past ten years there have been significant changes in the Canadian forestry industry. As a result, new assessments are needed to determine the value of the industry in the NWT's community economic development. The assessments include:

• A new inventory of the forest resources available in the NWT
• An examination of changes to southern and export lumber markets
• Developments of new technologies
• Opportunities available for use in Northern housing materials.

The investment will support three projects.

Forest Inventory Planning - The initial planning for the aerial photo acquisition for a new forest vegetation inventory, including base mapping and aerial photography. Areas of interest include the Liard Valley and the forest areas surrounding up to 13 NWT communities.

Jean Marie River Sawmill Site Design and Site Preparation - Design and preparation of a new site for the Jean Marie River community CARA 2000 sawmill. This will help the community's ability to develop this business in an efficient and stable way.

Two Pellet Feasibility Studies - Feasibility study and business case planning for making wood pellets using NWT forest lands.

Strategic Investments in Northern Economic Development

The investment is made possible through CanNor's Strategic Investments in Northern Economic Development (SINED) program, which focuses on long-term economic growth, economic diversification and capacity building in the three territories.

CanNor is a newly established agency responsible for coordinating and delivering federal economic development activities in the North.