Western Forest Products has sold ownership interest in its Port Alberni forest operation to the Huu-ay-aht First Nations.
The announcement was made Dec. 14 at Pacific Coast University in Port Alberni.
The purchase has been set up as a limited partnership for $7.2 million, representing a seven percent share for Huu-ay-aht. Assets in the limited partnership will consist of some of WesternB次元官网网址檚 assets in its Port Alberni forest operation, including TFL 44. The deal makes room for Western to sell incremental interest in the limited partnership to the Huu-ay-aht in the future.
Western will still access fibre from TFL 44 to support its B.C. manufacturing facilities.
The announcement B次元官网网址渋s the first step toward implementing an innovative new framework for the ownership, cooperative management and operation of forestry on TFL 44 and throughout the Alberni Valley,B次元官网网址� Huu-ay-aht lawyer Rob Botterell said.
Don Demens, president and CEO of Western Forest Products, said the deal B次元官网网址渋s a positive step towards increasing First Nations participation in the forest sector, which will benefit the Nation, local communities, Western and our employees.B次元官网网址�
It will increase Huu-ay-aht First NationsB次元官网网址� participation in the forestry sector and create better stability for business. It will allow both parties to better manage the resource and share infrastructure, Demens added.
B次元官网网址淲e want to mutually work with Western,B次元官网网址� said Huu-ay-aht Chief Councillor Robert Dennis Sr. B次元官网网址淲hat can we do to help generate wealth for Huu-ay-aht so we can do the things we need to do in our communityB次元官网网址e have a rich forest; letB次元官网网址檚 make it work.B次元官网网址�
B次元官网网址淲eB次元官网网址檙e really excited about the opportunity to expand across the land base. It makes for more efficient operations and will create more volume for Alberni,B次元官网网址� Demens said.
B次元官网网址淲ith the reduction of the land base here over the last 20 years thereB次元官网网址檚 not enough volume here to support full operations in Port Alberni. In fact, only about 20 percent of the logs harvested in the Alberni Valley can actually fit into the mill. We import more logs into Port Alberni than go out of the mill.
B次元官网网址淭his creates a bigger land base to be able to get the right logs for the facility.B次元官网网址�
Demens stopped short of saying WFP will have access to Huu-ay-aht treaty forest lands, saying they would have to work with the Huu-ay-aht on a standalone business agreement.
The deal builds on a Reconciliation Protocol Agreement the two parties signed earlier in 2018. B次元官网网址淗uu-ay-aht and Western share the same goals, and together we have demonstrated a track record of cooperation and a willingness to work together to achieve reconciliation, and forestry revitalization,B次元官网网址� the Huu-ay-aht noted in a prepared statement.
The Nuu-chah-nulth Tribal Council called the agreement progressive and congratulated the Huu-ay-aht First Nations.
B次元官网网址淭his acquisition shows the nationB次元官网网址檚 determination to create a better future for its membersB次元官网网址攑articularly with respect to future employment opportunities in Huu-ay-aht territory,B次元官网网址� NTC president Judith Sayers said.
B次元官网网址淜udos as well to Western Forest Products for the innovation it displayed in working with a First Nation on a development that will progress the interests of both parties.B次元官网网址�
Norm MacLeod, representing United Steelworkers Local 1-85, said the agreement is good for forestry in the Alberni Valley. B次元官网网址淚t will help the Alberni Valley grow and keep some of the wood here instead of being sent over the Hump,B次元官网网址� he said.
B次元官网网址淚B次元官网网址檓 hoping it will mean more jobs.B次元官网网址�
Demens said there is still work to be done before the deal will be complete. B次元官网网址淥nce we end up with a final agreement, then the physical work would start, and the management,B次元官网网址� Demens said.
B次元官网网址淭hereB次元官网网址檚 a business structure that needs to be developed and put in place for the transaction to finalize.B次元官网网址�
The deal is still subject to approval of Huu-ay-aht citizens and the provincial government. The Huu-ay-aht will hold community engagement sessions to discuss details with their citizens in January 2019.
