Another sawmill in northwestern Ontario is set to cease operations indefinitely. Domtar revealed that the Ignace sawmill will be halted once its current log inventory is processed, anticipated to be completed by March 12. The decision is attributed to challenging market conditions and economic uncertainty, with lumber demand in North America remaining subdued. Domtar’s senior director of public affairs, Guillaume Julien, mentioned that the company needs to adjust production levels to align with the current market situation, influenced by tariffs and broader economic challenges.
Earlier, Domtar announced a temporary 150 million board feet reduction in lumber production across its facilities in Quebec, Ontario, and the United States for the first quarter of 2026. Ignace, with a population of about 1,200, is affected by the sawmill closure, employing approximately 25 individuals and supporting other indirect jobs in the area, as highlighted by Wesley Ridler, a business representative for United Steel Workers Local 1-2010.
The community expressed disappointment over the unfolding events, acknowledging the impact of softwood lumber prices and U.S.-Canadian tariffs on the situation. This shutdown adds to the challenges faced by other northwestern Ontario communities, such as the indefinite closure of Interfor’s sawmill in Ear Falls and the continued shutdown of the Terrace Bay pulp mill since January 2024.
Calls for a softwood lumber deal have intensified as U.S. duties on Canadian softwood lumber imports have reached 45%. Ridler emphasized the necessity of a softwood lumber agreement to prevent further sawmill closures and its detrimental effects, particularly in smaller communities heavily reliant on such industries.
In a period of transformation for Ignace, the Nuclear Waste Management Organization (NWMO) has selected the town, along with Wabigoon Lake Ojibway Nation, as a preferred host community for Canada’s first deep geological repository. This proposed project, estimated at $26 billion, involves burying Canada’s nuclear waste underground over hundreds of meters.
Although facing opposition from several First Nations and environmental groups due to safety and environmental concerns, the NWMO project is progressing. The Impact Assessment Agency of Canada anticipates the project to span 160 years, providing permanent storage for about 5.9 million bundles of used nuclear fuel. Public feedback is being collected to inform the subsequent phase of the assessment until Feb. 4.
Efforts are underway to construct the NWMO Centre of Expertise in Ignace, which will house technical and social research programs related to the nuclear waste repository. Alongside the development of a new housing subdivision in the town, these initiatives aim to create additional local employment opportunities, enhancing economic diversification and resilience in the community.
As Ignace prepares for potential growth linked to the approval of the nuclear waste repository, ongoing efforts are focused on expanding and stabilizing the local economy to mitigate the impact of cyclical economic fluctuations on the residents and workforce.