VANCOUVER ISLAND – The Tlowitsis, We Wai Kai, Wei Wai Kum and K’ómoks First Nations, and Western Forest Products Inc. have reached an agreement for the Nations to acquire a 34% interest from Western in a newly formed Limited Partnership for $35.9 million. The Province of British Columbia helped to facilitate the Partnership through Incremental Treaty Agreements with the Nations, all of whom are in Stage 5 of the British Columbia Treaty Process.
The formation of the Partnership and acquisition by the Nations is subject to various closing conditions, including subdivision and tenure transfer approvals from the British Columbia Ministry of Forests. Western and the Nations are working towards closing the acquisition in the first quarter of 2024.
“Our agreement is another step forward in Western’s ongoing commitment to economic reconciliation and setting a solid foundation that benefits workers, communities and shareholders,” says Western’s President and CEO Steven Hofer. “Together with our partners, we are ushering in a new era of forestry in this province – one where everyone has the opportunity to fully participate and benefit.”
The Partnership will consist of certain assets and liabilities of Western’s Mid Island Forest Operation, including Block 2 of Tree Farm Licence 39. The operations of the new Partnership will cover approximately 157,000 hectares of forest land in the traditional territories of the Nations near the communities of Campbell River and Sayward on eastern Vancouver Island. The Partnership will manage an allowable annual cut of 904,540 cubic metres of timber and includes a long-term fibre agreement to support Western’s British Columbia coastal manufacturing operations.
“For Tlowitsis First Nation, this Agreement represents a new way forward that is deeply meaningful,” says Tlowitsis Chief John Smith. “The opportunity to be on the ground working on our territories is huge – to provide jobs for our young people, revenue to support our Nation, and simply a better way of doing business together, is priceless.”
“We Wai Kai is making significant investments in forestry, including the development and growth of our logging company, Way Key,” says We Wai Kai Chief Ronnie Chickite. “We appreciate the recognition by Western and British Columbia that we are an integral partner in the forest industry in our territory. This Agreement, and the Partnership it creates, is an important step forward for our Nation in participating meaningfully in the forest economy and taking back governance over our lands and resources.”
Full press release here
