Ron Racine is one of the owners of Trace Resources. “We run our operations on LNIB, near Merritt, and we employ people there. We’ve been operating for one and a half years manufacturing forestry fibre for chips, hog fuel, and some logs for market.”
The company picks the highest value usage for the fibre and ultimately uses a lot of low-cost fibre in their operations. In fact, the company has caught the attention of the B.C. government, “With companies like Trace, we’re turning the mountain pine beetle infestation into a bioenergy opportunity that will create jobs and meet our climate goals,” said Forestry Minister Pat Bell, while he toured Trace’s grinding operations north of Merritt.
“We’re seeing a whole new industry developing – an industry that leaves no piece of wood behind.” Trace Resources formed in October 2008 in answer to new opportunities around the utilization of wood waste. Together with an affiliated company, Jaeden Resources, it recently put into operation two grinders and loaders worth $1.8 million.
Trace is following the learning curve and, “learning by doing,” says Racine. Chips are used by pulp mills like Harmac Pacific Northern Bleached Softwood Kraft (NBSK) pulp mill located on the east coast of Vancouver Island near Nanaimo, British Columbia, and Howe Sound Pulp and Paper. Hog Fuel is sold there, and to Belgium. Logs go to market.
Racine says, “LNIB was looking for partners to move products from their forestry operations and we were looking for land to put our operations, and fibre for those operations, and skills in forestry operations,” and found all of this in LNIB. Racine’s company found the LNIB operations and personnel to be innovative and relationship oriented.
Racine says, “The relationship is based on three principles, the land lease, the employment of LNIB personnel both directly and indirectly, and the operation of the FRA forest license owned by LNIB.” Trace operates on a ten hectare site north-west of Merritt. “We have buildings, a scale for weighing fibre, and a chip plant. Some of the timber is processed for log sales.”
The company maximizes profits from the wood fibre they receive from LNIB and other First Nation forest licensees. “It’s full utilization of the wood.”