On behalf of Chief Theresa Nelson, Animbiigoo Zaagi'igan Anishinaabek; Chief Laura Airns, Bingwi Neyaashi Anishinaabek; their communities; the board of directors of Wawasum Group LP and me, Joe Hanlon, project manager, we would like to thank the Standing Committee on Natural Resources for this opportunity to present to you today.
Animbiigoo Zaagi'igan Anishinaabek, AZA, and Bingwi Neyaashi Anishinaabek, BNA, are two first nation communities that each have a land base in northern Ontario but lack the infrastructure needed to sustain their members. The communities created a joint partnership and formed Wawasum Group LP, with the goal to construct and operate a wood pellet production facility. To capitalize on the current economic demands for carbon-neutral, environmentally friendly products, AZA and BNA applied to the Ontario Ministry of Natural Resources' forest competitive process and were successful in obtaining 113,000 cubic metres of hardwood annually.
Our goal is for the fibre to be delivered to our wood pellet production facility, then processed into wood pellets, thereby producing 60,000 tonnes of pellets annually. Our business plan shows that this project has the potential to create approximately 45 new jobs in the production facility, wood yard, and forestry operations.
Wawasum's decision to participate in the wood pellet industry was largely based on the enormous growth that is taking place in many parts of the world, such as Europe, Asia, and North America. ln 2012 an article written in Canadian Biomass indicated in part that in the next eight years, significant growth is predicted in wood-fuel pellet markets worldwide, and that Europe will continue as the largest source of demand, with markets also emerging in Asia. It said that growth in production will continue in North America, but new production is being established in nearly all wood fibre baskets worldwide
The current global market volume of biomass pellets of around 16 million tonnes annually is projected to increase to 46 million tonnes by 2020, representing a total market value of $8 billion U.S.
The adoption of the biomass fuel pellets is largely driven by policy and financial incentives in much of the world, and this will continue to be the case. Wawasum wants to be a supplier in this emerging market. We believe not only will it be a profitable venture, but it will also be environmentally cleaner and a renewable resource, unlike coal or natural gas. That is why we want to continue to advance our project. It has not come without some struggles and concerns.
We are here today to bring to the committee's attention some concepts that could assist us with our goal and could also benefit other aboriginal communities in the future.
With respect to stable federal government funding, we believe that the current system needs to be studied when it comes to funding first nations start-up businesses that want to create economic opportunities through forestry. The following comment in no way takes away from the support and the funding we have received from the federal and Ontario governments. We would not be here today without their support.
Our suggestion is that the federal government create a program that ensures secure, stable funding is made available so that a start-up business can explore and complete all pre-construction requirements.
When a community first prepares a project application, there is a lot of detail that is required in order to present a well-thought-out case for the project. Once submitted and approved, the project starts, progress is being made, and the community is encouraged. Unfortunately, without assurance from the start of a project to the completion, it can cause undue delays or even end a project. That is why it's important to establish a program that would allow for the momentum to continue and grow.
With this type of structure, first nations start-up businesses would not have to assess which programs may be available, prepare applications, deal with new people who are not familiar with the project, rehire or hire new employees, wait for approvals, and deal with questions and uncertainty from the community members. With assurance of the stability of funding, we could proceed in a more productive and cost-effective way. We could then focus our energy on providing annual financial statements and progress reports to the funder, demonstrating our advancements in order to continue.
It does not benefit our communities or the taxpayers of Canada to fund the beginning of a business opportunity and not see it to completion.
Concerning loan guarantees, to assist with first nations community growth and to create meaningful employment, we need forest industry jobs.
Many reserves are located in isolated areas surrounded by renewable forest. We as first nations people can manage the forest and ensure a balance in respect to our traditional hunting, fishing, and trapping, while also creating economic opportunities for our members. Wood pellets are in high demand nationally and globally; sawmills are rebounding; harvesting operations will be created and grow, to name a few opportunities. However, these projects require large capital investments, and in order to create economic opportunities for our communities, we need the support of the federal government.
We believe this can be accomplished in part with loan guarantees for first nations forestry-related businesses. Working together to develop loan guarantees demonstrates a pledge to first nations people and sends a message to the financial world that the Canadian government stands with and supports the creation of successful first nations businesses.
ln closing, we truly believe that the federal government's support and work with first nations communities and businesses will send a positive message to the forest industry worldwide that Canada and its first nations partners are working together to provide low-cost, renewable, and sustainable forest products that are essential in a global economy.
With consistent funding, loan guarantees, and other joint programs that promote growth, first nations communities will benefit. Canada, the provinces, and surrounding communities will also prosper from the economic spinoffs as projects are developed and come into service. This type of vision and declaration from the federal government can provide meaningful improvement to the lives of first nations people and their communities. Only through education, empowerment, employment, infrastructure, commitment, funding, and backing in the forest sector can we be a part of a progressive change.
Through the continued support of the chiefs, their councils, and the communities of AZA and BNA, Wawasum is committed to developing a wood production facility. This capacity will benefit and shape our community's long-term needs in a positive way. The support of this committee and of all political parties will assist in the development of our project, but by working together we can improve the economic and social needs of all aboriginal people across this country.
Meegwetch. On my own behalf and that of our Wawasum board of directors and the communities of Animbiigoo Zaagi'igan Anishinaabek and Bingwi Neyaashi Anishinaabek, thank you.