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Federal Court - Christian Aboriginal Infrastructure Developments ...

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Page: 326<br />

of SYFC believed that the new regulatory requirement for local processing would increase the<br />

availability of wood for SYFC.<br />

[1223] In cross-examination, Mr. Van Leeuwen said that the regulatory changes did not impact on<br />

the THA because it was for a different time period. He stated that the regulatory scheme was<br />

beneficial to the mill because additional volume would be available to SYFC.<br />

2010 FC 495 (CanLII)<br />

[1224] Mr. Van Leeuwen noted that SYFC had arranged to purchase logs from local loggers and<br />

CTP holders. It was assumed that the new mill would buy the required log input volume at current<br />

market prices from individual CTP holders for a 2 – 3 year start-up period. In this regard, Mr. Van<br />

Leeuwen is simply stating a fact, since SYFC had indeed arranged to purchase logs for local CTP<br />

holders.<br />

[1225] Mr. Van Leeuwen noted that in 1998, SYFC made plans to formalize log purchase contracts<br />

of 140,000 m 3 of saw logs per year and considered the establishment of log purchase agreements for<br />

a minimum of 3 years. This is factually correct and the Plaintiffs were successful in obtaining<br />

215,000 m 3 of wood in 1999-2000.<br />

[1226] There are also copies of log supply agreements in the documentary evidence.<br />

[1227] Insofar as he stated that the Plaintiffs would be able to purchase logs for an initial 2 – 3 year<br />

start-up period, this assumption is reasonable, in my opinion, and not relevant to his projections.

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