The utilization of lignin from Pinus radiata black liquor, as a copolymer in ligninphenol-formaldehyde resin binders was studied. Methylolation, demethylation and ultrafiltration separation of high molecular-weight fractions were carried out in order to increase lignin reactivity. The different modified lignins were tested in preparation of lignin-phenolformaldehyde resin binders. Mechanical properties and water resistance were evaluated through testing particleboard panels manufactured with the resins obtained. The best resin was composed of 18,8% ultrafiltrated high molecular weight lignin, 22,9% phenol and 58,3% formaldehyde and had comparable properties with typical commercial resins prepared only with phenol and formaldehyde. An economic analysis was made in order to compare possible benefits obtained through the replacement of phenol by lignin products. The ultrafiltrated lignin copolymer was significantly less costly than a phenol-formaldehyde resin and had comparable physical and chemical properties.