The Tlowitsis, We Wai Kai, Wei Wai Kum and K’ómoks First Nations (the “Nations,” all member First Nations of the Nanwakolas Council), 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, Canada, 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 Q1 2024.
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.
Tlowitsis, We Wai Kai, Wei Wai Kum, and K’ómoks, who share significant areas of their respective territories, have been stewards of their forests for millennia. Nanwakolas Council assisted the four Nations in concluding the Agreement.
Western Forest Products Inc. is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.
