MIRAMICHI - The province is opening up to the idea of providing Arbec Forest Products with a Crown allocation and if that is the case, it may be bigger than the one assigned to Weyerhaeuser.
Representatives from Business New Brunswick, the Natural Resources Department, Arbec and Weyerhaeuser attended a meeting Thursday to discuss the stalled deal for the oriented strand board mill.
Miramichi-Bay du Vin MLA Bill Fraser didn't attend the meeting, but said Friday the province offered Arbec an allocation of 300,000 cubic metres.
"That's more wood than was allocated before for Weyerhaeuser."
The Crown allocation size has been the sticking point in the potential sale, with Arbec saying they need about 650,000 to 700,000 cubic metres of wood per year to run the mill.
What they don't get from the allocation, Arbec would then buy from private woodlot owners.
One of the company's concerns was dealing with woodlot owners and the forest products marketing boards for the remainder, but they used to sell to Weyerhaeuser, Fraser said.
"I'm pretty confident that the local marketing boards will come onboard and guarantee the wood supply that they need."
Business New Brunswick Minister Greg Byrne said it was a positive meeting and gave everyone the opportunity to come together to talk about Arbec's plans.
"I think we all left the meeting with a greater understanding of what the potential was and what the requirements were."
The meeting gave them a chance to talk about the size of the allocation and species of trees needed so Arbec could go back and complete a business plan, he said.
"It certainly helped us move things forward by having that meeting."
Fraser said they were able to give Arbec a bigger allocation because the Umoe deal is done.
"We know what we have to work with now."
Byrne said it was important for the government to know what was required of Arbec's plan.
"We have indicated that we are certainly willing to work with that company."
Arbec wanted to know there was a willingness on the part of the government to work with them and the province wanted to make sure the company's plan was viable, he said.
"That was certainly the message that was sent loud and clear at yesterday's meeting."
Byrne said as a result of the meeting, Arbec is now in a position to put together a business plan.
"Based on all the information they have, they will analyze the business opportunity and if they believe there is a positive business opportunity then they will come forward to government with a business plan."
Arbec indicated they want to move forward and the government will provide any information they need in a timely fashion, he said.
"I suspect they will not waste any time in putting their information together."
In an e-mail sent Friday, Arbec vice-president of finance and administration Serge Mercier said the company welcomed the government's openness at the meeting.
"They made a revised proposition for wood allocation. We need time to analyze it and determine how it fits in our business plan."
Although he knew about the meeting, Northumberland Forest Products Marketing Board president Jean-Guy Comeau said he didn't know much about how the mill sale is progressing.
"We don't know more than the general information from our last contact with them."
But things look better than they did six months ago, he said.
"We really hope we see some little lights at the end of the tunnel."
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