Landmark agreement supports First Nations participation in forestry

Press Release

Oct. 24, 2023

VICTORIA – 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, who are all member First Nations of the Na̲nwak̲olas Council, 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 toward closing the acquisition in the first quarter of 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 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 millenia. Na̲nwak̲olas Council assisted the four Nations in concluding the Agreement. This is a good day for everyone on Vancouver Island and the central coast,” said Dallas Smith, president, Na̲nwak̲olas Council. “For far too long, the very people who are the reason there were healthy, abundant forests here prior to colonization were excluded from participation in their continued sustainable management and any ability to benefit from them. Today, we celebrate a significant step forward on the pathway to sustainable, effective resource management of our forests for the benefit of future generations. I applaud the Nations for taking this step. I acknowledge Western for stepping up into the partnership and thank B.C. for helping make this happen.”

K’ómoks Chief Ken Price, a registered professional forester, said: “Negotiations by K’ómoks towards the acquisition of an economically viable forestry operation began in 2021. Historically, our people have always been involved in the forestry industry. This forestry partnership agreement reflects not only a significant and meaningful incremental step forward in our vision for economic well-being as a Nation, but also our vision for a K’ómoks Treaty with the provincial and federal governments. K’ómoks would like to acknowledge Na̲nwak̲olas Council for its support of the Nations during the negotiations process, and our partners Tlowitsis, We Wai Kai and Wei Wai Kum. As First Nations, we all look forward to taking our rightful place in forestry ownership and management in our territories. The partnership achieves one of the Winning Conditions of reaching a K’ómoks Treaty and K’ómoks has put significant resources into the work that has led up to this point. We thank Western for their work to make the partnership happen and the support for our negotiations over the years from the Government of Canada and from the provincial government.”

Tlowitsis Chief John Smith said: “For Tlowitsis First Nation, this agreement represents a new way forward that is deeply meaningful. The opportunity to be on the ground working on our territories, to provide jobs for our young people, revenue to support our Nation and simply a better way of doing business together, is huge and priceless.”

We Wai Kai Chief Ronnie Chickite said: “We Wai Kai is making significant investments in forestry, including the development and growth of our logging company, Way Key. 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.”

Wei Wai Kum Chief Councillor Christopher Roberts said: “When we speak of reconciliation, here is a living, practical example of reconciliation on the ground. We have raised concerns repeatedly over generations about the immense value and wealth leaving our territory, with little to no benefit to our Nation. We have not been involved at the table in decision-making. Finally, we took a stand four years ago that this must stop. We could not support the replacement of forest licences in our territory that don’t have commitments to address our concerns. But, things are changing. This agreement is proof that it is possible to address multiple interests and generate positive outcomes for all people that call our territory home. Provincial support for this new partnership aligns with the Action Plan on the Declaration of the Rights of Indigenous Peoples Act. It aligns with our demonstrated ability to take back control of our territories and manage them successfully to ensure a better future for our people. I thank Western for sharing that vision of the future with us and congratulate all of the partners and parties involved. It was hard work but will have lasting positive impacts that will increase for generations to come.”

Premier David Eby said: “The partnership is an excellent example of working together towards reconciliation. Incremental Treaty Agreements build trust and ensure First Nations in the treaty process and the entire community experience benefits sooner. This agreement means opportunities are on the way for business, First Nations members and communities on northern Vancouver Island, proving that a rising tide lifts all boats.”

Murray Rankin, Minister of Indigenous Relations and Reconciliation, said: “Tlowitsis, We Wai Kai, Wei Wai Kum and K’ómoks want to work innovatively and collaboratively with B.C. through the Incremental Treaty Agreements. They also wish to work with Western Forest Products to have a lasting and positive impact on communities in north and central Vancouver Island that depend on the forestry industry. It is essential that these First Nations have a greater role in forestry, to advance  their own economic goals and to advance reconciliation.”

Steven Hofer, Western’s president and CEO, said: “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. 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.”

Quotes:

Ronna-Rae Leonard, MLA for Courtenay-Comox –

“I thank the Na̲nwak̲olas Nations and Western Forest Products for their commitment to a partnership that will have a lasting impact on an industry that is vital to northern and central areas of Vancouver Island. This new forestry venture ensures the Nations will have a greater role in economic development within their territories and I am proud that B.C. is working shoulder to shoulder with the Nations to achieve that.”

Michele Babchuck, MLA for North Island –

“So many residents living in the northern Vancouver Island region depend on a strong forestry industry and it takes innovative partnerships like this to strengthen its foundation. Tlowitsis, We Wai Kai, Wei Wai Kum, K’ómoks Nations and Western Forest Products represent a great partnership in the sustainable management of resource assets that fall in the Nations territories.”

Quick Facts:

• The Na̲nwak̲olas Council provides its member First Nations with advocacy and information services, technical support, coordination and advice to assist them in their decision-making work.
• 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.

A backgrounder follows.

Contacts:

Jimmy Smith
Deputy Communications Director
Office of the Premier
jimmy.smith@gov.bc.ca

Ministry of Indigenous Relations and Reconciliation, Declaration Act Secretariat
Media Relations
250 896-4348

Dallas Smith
President
Na̲nwak̲olas Council
250 203-0280

Babita Khunkhun
Senior director
Communications
Western Forest Products Inc.
604 648-4562

BACKGROUNDER

About the members of the limited partnership

About Na̲nwak̲olas Council:

The Na̲nwak̲olas Council provides its member First Nations with advocacy and information services, technical support, co-ordination and advice to assist them in their decision-making work. That work includes reviewing applications for provincial tenures and permits referred to the member First Nation for their decision and watching over Aweenak’ola through the Ha-ma-yas Stewardship Network. Through Na̲nwak̲olas Council, the member First Nations come together to make decisions on matters in which they share common interests. They unite to uphold their Aboriginal rights and title using the powerful collective voice on the Na̲nwak̲olas Council. The Na̲nwak̲olas Council engages with governments, industry and partners of the member First Nations to protect the rights of the First Nations, and to ensure they are honoured and respected.

For more information, visit: https://nanwakolas.com/

About Tlowitsis First Nation:

The traditional territory of the Tlowitsis First Nation spans the coastal area of northern Vancouver Island, Johnstone Strait and adjacent mainland inlets. From time immemorial until the 1960s, the Tlowitsis occupied numerous sites throughout these lands. Seasonal travel routes, food processing locations, burial and cultural sites, and other named places extend across the entire territory. Kalagwees, located on Turnour Island, was the Tlowitsis’ primary winter residence.

The Tlowitsis were displaced from Kalagwees in the late 1960s, leading the people to be culturally and physically separated from their traditional territories. In the spring of 2018, the Tlowitsis finalized the purchase of a 635-acre property in the Strathcona regional district, just south of Campbell River. It is here that they will be establishing a new home community for their citizens, known as Nenagwas or “a place to come home to” in English.

About We Wai Kai First Nation:

The We Wai Kai embrace their language and culture to build a proud, healthy, safe and self-sufficient community. We Wai Kai people support and encourage each other to thrive by following the footsteps of their ancestral history, as stewards of their lands and waters, while balancing their role in modern-day society.

We Wai Kai’s current population is approximately 1,200 citizens, about half of them live on-reserve (split between Cape Mudge village and Quinsam reserve) and the other half live off-reserve. The Nation has five designated reserve lands covering 685 hectares (1,693 acres). We Wai Kai territory includes the east side of Vancouver Island from the Qualicum River in the south to the Tsitika River in the north, from Toba Inlet to Jackson Bay in the mainland and all the islands in between.

We Wai Kai’s investments in forestry include the formation of its logging company and the acquisition of 7,600 acres of prime forest lands through an agreement with British Columbia. We Wai Kai continues to strive for economic self-sufficiency through a principled and practical approach to resource development, balancing economic growth with conservation.

About Wei Wai Kum First Nation:

The centre of Wei Wai Kum territory is Campbell River, on the east coast of central Vancouver Island in British Columbia. Based on the history of their ancestors, Wei Wai Kum territory today extends from the headwaters of Loughborough Inlet north of Campbell River to the Tsable River in the south. It goes westward to the chain of mountains on central Vancouver Island and eastward midway through the Strait of Georgia.

The Wei Wai Kum First Nation (Campbell River Indian Band) engages in a range of social and economic programs, services and activities that promote the well-being and prosperity of the members. These include education, housing, health care, social development and recreation. The First Nation also support activities that preserve and promote the Wei Wai Kum culture, such as training in the Lik’wala language and traditional dancing and singing.

Wei Wai Kum has learned a great deal over recent decades about forestry legislation, and about government and industrial forestry management practices in our territory. It became very clear that without direct involvement in planning and decision-making, and significant benefits flowing to the First Nation from forestry activities in the territory, the First Nation could no longer support the status quo. Coming to an agreement with Western Forest Products Inc., with the support of the Province to reach a deal that addresses issues and concerns, is encouraging. It shows the world what is attainable throughout the territory by working with different partners for a common goal: the well-being of the territory and the people, and the restoration of rightful authority over their lands and waters.

About K’ómoks First Nation:

For thousands of years, Indigenous people occupied the shoreline of eastern Vancouver Island stretching from what is known today as Kelsey Bay in the north to Hornby and Denman Island in the south, including the watershed and estuary of the Puntledge River. The people called K’ómoks today referred to themselves as Sahtloot, Sasitla, Ieeksun and Puntledge. They lived in Salmon River, Quinsam and Campbell Rivers, Quadra Island, Kye Bay, Comox Harbour and estuary, Baynes Sound and many locations throughout the territory.

Today, K’ómoks is in Stage 5 of the BC Treaty Process, working toward its Final Agreement. During its negotiations, K’ómoks set “Winning Conditions” for its treaty, including ensuring the economic success of the First Nation. The steadfast commitment of K’ómoks, requiring the conditions be met, has resulted in securing financial contributions from both B.C. and Canada toward meeting the First Nation’s vision for forestry and a long-term wood supply.

Through its direct negotiations with the forestry sector in the last three years, K’ómoks gained knowledge and understanding of its forestry capacity requirements. This experience and the First Nation’s commitment to the partnership negotiations has been a significant benefit in concluding the agreement with Western Forest Products Inc. and the First Nations partners, and strengthening relationships in the forestry sector. The opportunity that the partnership represents includes economic, social, stewardship and management of resources in the territory.

About Western Forest Products Inc.:

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. With operations and employees located primarily on the coast of British Columbia and Washington state, Western is a premier supplier of high-value, specialty forest-products to worldwide markets. Western has a lumber capacity of over one billion board feet from seven sawmills, as well as operates four remanufacturing facilities and two glulam manufacturing facilities. The company sources timber from its private lands, long-term licences, First Nations arrangements, and market purchases. Western supplements its production through a wholesale program to provide customers with a comprehensive range of specialty products.

Contacts:

Jimmy Smith
Deputy Communications Director
Office of the Premier
jimmy.smith@gov.bc.ca

Ministry of Indigenous Relations and Reconciliation, Declaration Act Secretariat
Media Relations
250 896-4348

Dallas Smith
President
Na̲nwak̲olas Council
250 203-0280

Babita Khunkhun
Senior director
Communications
Western Forest Products Inc.
604 648-4562

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