Daily News for February 02, 2021

Today’s Takeaway

Virtual GBM a success despite pandemic induced Zoom-fatigue

February 2, 2021
Category: Today's Takeaway

The virtual Global Buyers Mission attracted 660 buyers and sellers of wood products, 85% of the usual in-person event. In other association news: the BC Forest Professionals’ AGM starts tomorrow; and the Southern Forest Products’ Tami Kessler is retiring after 45 years. Meanwhile: BC resources are said to pave the road to recovery; Western Forest Products has a new collective agreement; PotlatchDeltic reports positive Q4 and 2020 results; Rambler Wood Products announces new Virginia facility; and Weston Forest has a new VP sales.

In Forestry/Climate news: COP26 to focus on worldwide forest protection; US scientists confirm 2020 tied the record for hottest year; BC conservationists argue the climate impact of clearcuts; and BC allocates monies to increase wood fibre use.

Finally, from a groundhog in Pennsylvania, prepare for six more weeks of winter!

Kelly McCloskey, Tree Frog Editor

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Special Feature

The virtual Global Buyers Mission attracts more than 660 participants

By Kelly McCloskey
Tree Frog Forestry News
February 1, 2021
Category: Special Feature
Region: Canada

Last May, BC Wood CEO Brian Hawrysh was forced to postpone the 17th annual Global Buyers Mission (GBM) at Whistler BC due to Covid-19. …However, demand for this one-of-a-kind networking event for buyers and sellers of value-added wood products remained strong and the BC Wood staff were determined to create a workable alternative to the in-person event.

Proceeding virtually did not come without risk however and in fact some did hold back, but in the end more that 660 wood buyers, sellers and specifiers of value added wood products tuned in, fully 85% of the usual in-person participation level. According to Hawrysh, buyer attendance was up from the USA, Japan and Korea (thanks to BC Wood’s in-market reps) as was the contingent of architects and specifier groups.. …Longing for a return to in-person tradeshows, Fraserwood Industries’ Kurt Westerlund was highly complimentary. “The best digital event I’ve attended since the pandemic began”, he said. …Whether BC Wood will be allowed to host an in-person GBM this September is unknown but Hawrysh is already making plans. “Hopefully, we’ll be back in Whistler with an in-person event, but given our experience last week, future GBMs will likely be a hybrid of the two—in-person supported by virtual activities.” According to Hawrysh, this should mean greater participation from more buyers and countries and more involvement of off-site industry sales and technical reps.”

Click here for more coverage on the GBM’s WoodTALKs presenters Day 1 & Day 2.

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Froggy Foibles

Punxsutawney Phil sees his shadow and predicts six more weeks of winter

By Laura Ly
CNN News
February 2, 2021
Category: Froggy Foibles
Region: United States

Brace yourself for six more weeks of winter. That is, if you like to get your weather prediction from a groundhog in Pennsylvania. Punxsutawney Phil saw his shadow Tuesday morning and, as legend holds, that means six additional weeks of heavy coats and mittens. Phil was awakened at 7:25 a.m. and made his prediction in front of about 16 members of the Punxsutawney Groundhog Club at Gobbler’s Knob. “Now, when I turn to see, there’s a perfect shadow cast of me. Six more weeks of winter there will be,” one of Phil’s handlers announced on his behalf at the ceremony. The celebration, which is over a century old, looked a little different this year. Due to the coronavirus pandemic, there were no crowds in attendance or guests present. The first Punxsutawney Groundhog Day celebration was recorded in 1886… Phil has been correct in his forecasts about 50% of the time in the last 10 years.

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Business & Politics

B.C. resources help pave road to recovery

By Chuck Chiang
Business in Vancouver
February 2, 2021
Category: Business & Politics
Region: Canada, Canada West

Alexa Young

The natural resources sector has helped B.C.’s economy fare better than economies elsewhere in Canada during the COVID-19 pandemic, and the industry could drive the province’s economic recovery – if government allows it to. That is the message the sector presented at the 18th annual BC Natural Resources Forum. …One sector showing its potential as an economic engine is the province’s forest industry, said Alexa Young, at the BC Council of Forest Industries (COFI). Young, who noted that the sector benefited from people staying home more and opting to upgrade their dwellings during the pandemic, said the industry’s growth in 2020 is a potential road map for B.C.’s economic recovery. “It’s the depth and breadth of forestry’s reach into B.C.’s economy that has driven [economic] continuity. This is an industry that supports 100,000 good-paying jobs. It’s in Vanderhoof and Campbell River for sure, but it’s also in our cities in Burnaby, Surrey and right here in Vancouver.”

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2020 ABCFP Annual Report is Now Available Online – Conference starts tomorrow

The Association of BC Forest Professionals
February 2, 2021
Category: Business & Politics
Region: Canada, Canada West

The Association of BC Forest Professional’s are now available for download on the ABCFP website. During the ABCFP’s virtual AGM on February 3, 2021, we will provide a high-level summary of association business and financial statements, which are available in detail in the 2020 Annual Report. The 73rd ABCFP annual general meeting will be held online starting at 9:00 AM on Wednesday, February 3. The AGM will be live-streamed on our virtual platform which means ABCFP registrants can attend the AGM from anywhere you have access to the internet. Access to the virtual AGM is free for all ABCFP registrants regardless of whether you register for the full conference or not. If you’re not registered for the conference, you can view the live-stream AGM proceedings via Zoom using this link:

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Western and Public and Private Workers of Canada Announce New Collective Agreement

Western Forest Products
February 1, 2021
Category: Business & Politics
Region: Canada, Canada West

Vancouver, BC – Western Forest Products Inc. and the Public and Private Workers of Canada, Local 8 (PPWC) are pleased to announce that the terms of a new collective agreement have been ratified by members of PPWC. The new eight-year collective agreement covers approximately 70 hourly employees at Western’s Ladysmith Sawmill. The new agreement is effective from January 1, 2021, and expires December 31, 2028, and provides for general wage increases… “We are pleased to have jointly reached a positive outcome that reflects the valued contributions of our employees,” said Don Demens, President and Chief Executive Officer, Western Forest Products. “The new collective agreement is an important step in providing long-term certainty and stability for our employees, communities and our customers, who support thousands of jobs in coastal BC through their purchases.”

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Weston Forest announces new addition to Executive Team

Weston Forest
February 1, 2021
Category: Business & Politics
Region: Canada, Canada East

Ryan McInerney

MISSISSAUGA, Ontario — Steve Rhone, President and CEO of Weston Forest, is pleased to announce that Ryan McInerney has joined the Executive team and been promoted to the position of Vice President – Industrial Sales. “Ryan is another great example that Weston Forest is a company of unlimited opportunity,” said Rhone. “Ryan started here as a Sales Manager in 2009, learned our business over the years, and took on more responsibility as it was presented. His performance, dedication, and commitment make him the right choice to join our Executive team.” Weston Forest is a distributor and remanufacturer of softwood & hardwood lumber and specialty panel products, serving North America’s industrial and construction sectors.

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Southern Forest Products Association Executive Director Announces Retirement

Southern Forest Products Association
February 1, 2021
Category: Business & Politics
Region: United States, US East

Tami Kessler

After serving the southern pine industry for nearly 45 years with the Southern Forest Products Association (SFPA), Tami Kessler will retire on April 2, 2021. Tami began her life-long career with SFPA after graduating from Soule Business College in December 1976. In January 2014, Tami became SFPA’s Executive Director. Tami is one of the longest-serving employees in SFPA history. …Tami leaves a legacy built on relationships and trust. Her contribution to the faithful carrying out of SFPA’s International Program continued SFPA’s reputation as a dependable cooperator for USDA funding. …”On behalf of all members, I want to recognize Tami for her many contributions to our industry and thank her for her dedication and service to SFPA throughout her career,” commented SFPA Chairman Craig Forbes, “Her contribution and wonderful personality will truly be missed. …As part of an orderly transfer of leadership, Eric Gee will assume the role as Executive Director on February 1, 2021. 

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Finance & Economics

Wood-Pulp Prices Surge as Speculators Pounce in China

By Ryan Dezember
The Wall Street Journal
February 2, 2021
Category: Finance & Economics
Region: United States, International

Wood-pulp prices are soaring thanks to speculators in China, with help from paper takeout containers, a weaker dollar and people using restrooms at home instead of the office. Bleached softwood kraft pulp futures have risen 48% on the Shanghai Futures Exchange since Dec. 1, to about $1,037 a ton. Meanwhile, producers around the world are boosting prices for the wood mash at unusually sharp rates. Domtar Corp., said it would raise prices this month between $100 and $130 a ton, depending on grade. …Prices are hottest for softwood pulp… (for premium toilet tissue, paper towels, junk mail and coffee cups). …Demand for virgin pulp… has been on the rise in China, which has limited scrap imports… Pulp producers in Europe and North America have been diverting shipments from local spot markets to China to capture the surging prices, analysts say. …If high prices are sustained, analysts say slimmer margins are likely among makers of tissues and hygiene products. [We respect the copyrights of the source publication – full access may require a subscription]

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US Construction Spending Rose 5.7% in December

US Census Bureau
February 1, 2021
Category: Finance & Economics
Region: United States

The U.S. Census Bureau announced the following value put in place construction statistics for December 2020. Total construction spending during December 2020 was estimated at a seasonally adjusted annual rate of $1,490.4 billion, 1.0 percent above the revised November estimate of $1,475.6 billion. The December figure is 5.7 percent above the December 2019 estimate of $1,410.3 billion. …Spending on private construction was at a seasonally adjusted annual rate of $1,137.6 billion, 1.2 percent above the revised November estimate of $1,124.4 billion. Residential construction was at a seasonally adjusted annual rate of $691.0 billion in December, 3.1 percent above the revised November estimate of $670.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $446.6 billion in December, 1.7 percent below the revised November estimate of $454.4 billion.

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Rural housing supply drops a record 44%, drives overall shortage of homes for sale

By Redfin
Cision Newswire
January 29, 2021
Category: Finance & Economics
Region: United States

The number of homes for sale in rural areas nationwide started the year down a record 44.4% compared to a year ago, according to a new analysis from Redfin. … and in suburban areas it fell 38.4%. …In urban neighborhoods, the number of homes for sale dipped 16.9% over the same time period, less severe than the 21.5% drop seen in May and June of 2020. “The scarcity of rural and suburban homes for sale is driving the overall housing supply shortage,” said Redfin chief economist Daryl Fairweather. “Homes in rural and suburban areas remain popular as the pandemic and remote work continue to motivate buyers to prioritize indoor and outdoor space over commute times and urban amenities.” …Prices and sales are up by double digits in rural, suburban and urban neighborhoods. …Total home sales were up 18.3% in rural areas and 23.5% and 21.6% in suburban and urban areas, respectively.

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PotlatchDeltic reports strong Q4, full year 2020 results

By PotlatchDeltic Corporation
Business Wire
February 1, 2021
Category: Finance & Economics
Region: United States, US West

SPOKANE, Washington — PotlatchDeltic Corporation reported net income of $100.0 million on revenues of $337.4 million for the quarter ended December 31, 2020. Net income was $11.4 million on revenues of $203.5 million for the quarter ended December 31, 2019. Net income for the full year 2020 was $166.8 million on revenues of $1.0 billion. Excluding an after-tax pension settlement charge, adjusted net income was $198.6 million. Net income for the full year 2019 was $55.7 million, on revenues of $827.1 million. “2020 was a phenomenal year with all three of our businesses achieving record financial performance,” said Eric Cremers, president and chief executive officer. “We expect housing fundamentals and lumber demand to remain strong in 2021. While lumber prices will likely moderate this year, we expect lumber prices to remain higher than long-term averages.

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Japan’s housing starts dropped by 9.0 percent year-on-year in December 2020

By Government of Japan
Trading Economics
February 1, 2021
Category: Finance & Economics
Region: International

Japan’s housing starts dropped by 9.0 percent year-on-year in December 2020, compared with market consensus of a 3.8 percent fall and after a 3.7 percent drop a month earlier. This was the 18th straight month of decline in housing starts and the steepest pace since September, as new construction starts decreased at a faster rate for rented (-11.5 percent vs -8.1 percent in November), built for sale (-18.4 percent vs -6.1 percent), prefabricated (-9 percent vs -6.3 percent), and two-by-four (-17.9 percent vs -12.6 percent). In contrast, housing starts rose for both owned (2.4 percent vs 1.5 percent) and issued (15.2 percent vs 192.2 percent).

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Wood, Paper & Green Building

Wood Products Manufacturer Announces Virginia Facility, Creates 73 New Jobs

By Andy Szal
ThomasNet News
February 2, 2021
Category: Wood, Paper & Green Building
Region: United States, US East

A manufacturer of wood products will establish a new production facility in Southwest Virginia, state officials announced. Rambler Wood Products will invest $7.6 million in a former furniture factory in Saint Paul, Virginia, to house its new operations. The project is expected to create 73 new jobs, according to Virginia Gov. Ralph Northam’s office. The factory will convert white oak into barrel staves for regional cooperages — including the West Virginia Great Barrel Company — and red oak into hardwood products for the flooring, pallet production, and mining sectors. Residual wood will be converted into biomass products or sold to paper companies, while remaining wood chips and sawdust will go to either the paper sector or be made into wood pellets. State officials said Rambler committed to source at least 55% of its timber from Virginia …which would help create a new market for landowners and enable sustainable forest management.

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Forestry

Clearcutting makes climate-change risks worse, argues report from conservationists

By Derrick Penner
The Vancouver Sun
February 2, 2021
Category: Forestry
Region: Canada, Canada West

Of the top environmental risks expected from climate change, nine … can be mitigated or made worse by industrial logging practices, a report sponsored by conservation groups argues. The province’s own assessment of climate risks, however, doesn’t acknowledge the role that forest management plays in the threats, which is “this huge blind spot, a real concern,” said according to Jens Wieting, [of] the Sierra Club B.C., which commissioned the report. The Sierra Club, with the support of the Union of B.C. Indian Chiefs, released the report, Intact Forests, Safer Communities, on Monday. It is trying to keep pressure on government to implement all recommendations of its Old Growth Strategic Review, among other recommendations, as a starting point. …The Union of B.C. Indian Chiefs endorsed a resolution calling on government to include Indigenous people in forestry-management decisions … because of their “vested interest in protecting and stewarding the land,” said Grand Chief Stewart Phillip.

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Forestry grant to benefit Haida Gwaii

By K-J Millar
The Haida Gwaii Observer
February 1, 2021
Category: Forestry
Region: Canada, Canada West

Haida Gwaii will benefit from a portion of $3 million in grants allocated by the Forest Enhancement Society of BC (FESBC) aimed to reduce wood waste and emissions as well as support communities and workers, Jennifer Rice MLA for the North Coast announced on Feb. 1. “On Haida Gwaii, things like high transportation costs make it difficult for forestry operations to take advantage of forestry by-products for things like pulp and wood pellets,” Rice said in a press release. “This grant will mean that more usable wood waste from Haida Gwaii will go to mills for secondary processing, and less will be wasted or go into our atmosphere,” Rice said. The new grants being issued by the FECBC throughout the province will support jobs in the forestry sector and increase the utilization of wood fibre that otherwise would be burned as slash.

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New grants to help use more wood fibre

By Ministry of Forests, Lands, Natural Resource Operations and Rural Development
Government of British Columbia
February 1, 2021
Category: Forestry
Region: Canada, Canada West

The Forest Enhancement Society of BC (FESBC) has allocated $3 million in new grants throughout the province to support jobs in the forestry sector and increase the use of wood fibre that otherwise would be burned as slash. “This new funding is part of the government’s $1.5-billion economic recovery plan, which reflects our ongoing commitment to help British Columbians deal with challenges posed by the COVID-19 pandemic,” said Katrine Conroy, Minister of Forests. “The grants will support local jobs and help make better use of wood debris left behind after timber harvesting.” The latest round of funding supports 15 different projects in different regions of the province, with individual grant amounts ranging from $6,000 to $663,748. The projects will allow about 250,000 cubic metres of post-harvest waste wood to be used in the production of pulp, wood pellets, electricity and compost for soil remediation. 

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Gallagher introduces legislation aimed at combatting California’s wildfire crisis

By Austin Herbaugh
KRCR News
February 1, 2021
Category: Forestry
Region: United States, US West

Northstate Assemblyman James Gallagher (R-Yuba City) is leading a coalition of state lawmakers pushing for new legislation aimed at combatting California’s wildfire crisis. AB 297– called the Wildfire Prevention and Forest Resiliency Act of 2021, would allocate $500 million for fire prevention and forest health programs. The money would come from the state’s Greenhouse Gas Reduction Fund, according to the bill’s authors. The coalition that authored and introduced the bill consists of Republican State Assembly and Senate members who say that drastic action needs to be taken to prevent further destruction. …At this point, AB 297 only has Republican support. However, a spokesperson for Assemblyman Gallagher says he is speaking with Democrats in the hopes of gaining bipartisan support.

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Gov. Gianforte announces Good Neighbor Authority Timber Sale to begin in Libby

KULR 8
February 1, 2021
Category: Forestry
Region: United States, US West

Greg Gianforte

HELENA, Mont. – Governor Greg Gianforte announced Monday that the first Good Neighbor Authority (GNA) Timber Sale in Lincoln County is scheduled to begin operations this month. “The Good Neighbor Authority Timber Sale in Libby is a promising step forward as we work to more actively manage our federal lands. I’m committed to increasing our use of the Good Neighbor Authority so we can have healthier forests, prevent catastrophic wildfires, improve wildlife habitat, increase recreational opportunities and bring back good-paying Montana timber jobs,” Gov. Gianforte said. The GNA project named “Skidale” is located approximately one mile southwest of the intersection of U.S. Highway 2 and MT 37, on the Parmenter Creek Road. The project was analyzed by the U.S. Forest Service under the Skidale Wildfire Resiliency Project, signed in October 2019 by Libby District Ranger Nathan Gassmann.

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Scientists find new truths about how forests impact air quality

By Adrianne Keller, Ed Brzostek, Matt Craig, Joshua Fisher and Richard Phillips
Open Access Government
February 1, 2021
Category: Forestry
Region: United States, US East

A team from Indiana University, West Virginia University, the University of Virginia and the University of Warwick are looking into how tree species impact ecosystems – beneath the soil, as well as in the general forest. …“There’s been a shift in our thinking over the past decade about what controls soil carbon storage,” said Richard Phillips, professor of biology and co-author on both studies. “We used to think that slow decaying leaf detritus was the main driver of soil carbon storage, but we now know that fast-decaying compounds released by roots may be what causes soil carbon to persist.” …In two studies, the team reported that forest stands dominated by trees that associate with arbuscular mycorrhizal fungi differ from stands are dominated by trees that associate with ectomycorrhizal fungi in terms of how they store and retain carbon and nitrogen.

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Korea to deploy new 3D forecasting system for forest fires

By Kan Hyeong-woo
The Korea Herald
February 2, 2021
Category: Forestry
Region: International

Minister Park Chong-ho

The Korea Forest Service will set up a three-dimensional prediction system in a bid to minimize damages from forest fires this year, after a devastating year that has ravaged forests nationwide. The new 3D forest fire spread forecast program, which recreates the shape of the mountains in digital form, utilizes advanced information and communication technology, the KFS said Monday. More precise extinguishing missions will be possible when the new 3D program replaces its two-dimensional predecessor, it added.  In addition, it will also deploy a total of 32 surveillance drone teams to monitor hiking in restricted areas and unlawful incineration in the woods. …At least 2,920 hectares of forest were lost due to 620 forest fires last year, data showed. Compared to the average of the past decade, the number of fire cases and lost forest area have increased by 31 percent and 161 percent, respectively.

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COP26 brings countries together to protect world’s forests

The Government of UK
February 2, 2021
Category: Forestry
Region: International

A new initiative to protect rainforests from further destruction whilst ensuring development and trade is sustainable has been kick-started by the UK today as hosts of the COP26 climate summit in November. The UK today launched the Forest, Agriculture and Commodity Trade (FACT) Dialogue, which will bring together key countries exporting agricultural products and the countries consuming these products to discuss how to make this process greener and more sustainable. COP26 President-Designate, Alok Sharma, was joined by ministers from more than 18 different countries to kick start this new initiative which will take collaborative action through 2021 to November’s climate conference and beyond. …The FACT Dialogue aims to agree principles for collaborative action, a shared roadmap for the transition to sustainable supply chains and international trade, and to take action now to protect forests while promoting development and trade.

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Carbon, Climate & Bioenergy

Federal Scientists Confirm Virtual Tie For Hottest Year On Record

By Rebecca Hersher
National Public Radio
February 1, 2021
Category: Carbon, Climate & Bioenergy
Region: United States

Federal scientists have confirmed that 2020 basically tied with 2016 for the hottest year recorded since 1880. The Earth is about 2 degrees Fahrenheit warmer today than it was in the mid-20th century. Scientists warn that humans must keep global temperatures from rising more than about 3 degrees Fahrenheit in order to avoid the most catastrophic effects of climate change. NASA and NOAA calculate global temperatures using slightly different analyses methods, partly in order to check each other’s work. Because 2020 and 2016 were so close in temperature, the two analyses led to different rankings: NASA ranks 2020 as the hottest year on record by a tiny margin, while NOAA ranks it as the second hottest year by an equally tiny margin. …No matter how scientists slice the numbers, the pace of global warming is clear. All ten of the hottest years on record have occurred since 2005.

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How much carbon does your type of forest sequester?

By Steven Meyen
The Independent (Ireland)
February 2, 2021
Category: Carbon, Climate & Bioenergy
Region: International

…The EU has pledged to become the first carbon-neutral bloc by 2050. Nations around the world are (slowly) putting in place strategies to deal with the climate crisis. Trees have an important role to play with their ability to remove CO2 from the atmosphere and sequester that carbon in soil and wood. The benefits include net carbon removals at forest level, removals through wood products (eg construction timber and furniture) and substituting fossil fuels. Teagasc has developed an online Forest Carbon Tool (www.teagasc.ie/forestcarbontool) to estimate how much carbon can be removed in various forest scenarios. …The tool will then estimate for you annual and cumulative sequestration values, derived over two forest cycles. …Teagasc is holding informal three-part Zoom workshops for anyone interested in learning about starting a new forest in February and March.

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Forest Fires

59 homes lost, more threatened in Australian wildfire

The Associated Press in CTV News
February 1, 2021
Category: Forest Fires
Region: International

PERTH, AUSTRALIA — An out-of-control wildfire burning northeast of the Australian west coast city of Perth has destroyed at least 59 homes and was threatening more Tuesday, with many residents across the region told it is too late to leave. The 7,000-hectare blaze, which has a 80-kilometre perimeter, began on Monday and raged through the night near the town of Wooroloo… “Firefighters have done a remarkable job in some of the most challenging conditions that we’ve experienced in the metropolitan region for some time,” Western Australia state Department of Fire and Emergency Services Commissioner Darren Klemm said. …People in a 25-kilometre (16-mile) stretch west from Wooroloo to the Walyunga National Park northeast of Perth were told Tuesday it had become too dangerous to leave their homes. “You must shelter before the fire arrives, as the extreme heat will kill you well before the flames reach you,” a warning said.

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