News about the Pellet Plant

Today the Mayor had the privilege to meet with Mr. Richard Spinks, Chief Executive Officer, of Timberlands International Limited of the United Kingdom, an affiliate company of Active Energy Group Plc, to thank him for his generous donation towards the cost of the community mosaic mural project scheduled to take place October 27-29. The mosaic is a Canada 150 initiative that will connect our community with other communities across the country, celebrating our unique heritage and cultural traditions.

The meeting also provided opportunity to discuss the future of the pellet plant and sawmill in Roddickton-Bide Arm and revitalization of the forestry industry on the GNP.

According to Mr Spinks, negotiations, are still on track. Discussions and due diligence activities with Provincial Government officials have been very professional, thorough and positive.

AEG has this week moved to incorporate it’s Newfoundland operating company, Timberlands International (Newfoundland and Labrador) Inc. which will represent the parent company in the province going forward.

Following considerable due diligence and negotiations with buyers for both lumber and pellet production, resulting in pre-selling its potential production in full, the company has confirmed that there is considerable interest to see the plant in Roddickton fully operational. This is reflected in the substantial amount of time and investment that has already been made to ensure through due diligence that the plants once operating are economically viable and sustainable operations going forward for the long term.

It was also learned that a not insignificant investment and approximately two months of preparation will be needed to upgrade the existing pellet plant and sawmill to make it fully operational from where it stands today.

The Mayor asked at the meeting for an indication of timeline as to when the doors of the plant would be opened and production will commence, Mr Spinks suggested that subject to final government approval for the project, the first shipment from the plant should be loaded in the first quarter of 2018.

Whilst Mr. Spinks did not share with the Mayor the source or level of funding for the project due to confidentiality considerations he did reassure Mayor Fitzgerald, that the company had now confirmed its funding from a leading international financial institution, subject to Provincial Government approval, which appeared to be on track for a relatively timely conclusion.

Conditions under which Timberlands International would be involved in the Roddickton Plant were not discussed, though this would become clearer once negotiations were concluded.

Overall it was a very informative and helpful meeting. We would like to take this opportunity to say thank you for the efforts of all involved and we anxiously await the day when the final agreement between Government and company is signed and the pellet plant and sawmill become operational and contributors to the local economy once again.