May 02, 2008. /Lesprom.com/. Domtar Corporation announced that it has concluded an agreement in principle with Mr. Claude Bechard, Minister of Natural Resources and Wildlife, on the reallocation of forest harvesting rights in Northern Quebec. This agreement in principle, which is subject to consultations with local elected officials, First Nation communities and other wood business operators of the region, will allow Domtar to execute its consolidation plan, guaranteeing the reallocation of 665 thousand net annual cubic meters for the Val d’Or sawmill and 450 thousand net annual cubic meters for the Matagami sawmill, providing the required volume to restore the viability of these operations. Domtar is committed to cooperating with the Minister of Natural Resources and Wildlife throughout the consultation process. The agreement in principle also calls for the permanent closure of the Lebel-sur-Quevillon sawmilling operations and the reallocation of 276 thousand cubic meters to other sawmill operators in this region, namely, Barrette-Chapais Ltee., Les Chantiers de Chibougamau Ltee. and Abitibi-Bowater (Comtois). This reallocation of available forest harvesting rights will permit Domtar to add a third shift at the Val d’Or sawmill and a second shift at the Matagami sawmill. Domtar expects to preserve 800 permanent positions at its facilities in the region as well as secure supplies for its Sullivan remanufacturing facility and the Uniboard Canada Inc. particleboard mill in Val d’Or. Domtar Corporation is the largest integrated manufacturer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp.