Western Forest Products and the Tla'amin Nation say they have completed a deal that transfers ownership of a major forestry operation to the First Nation.

A joint statement says the Tla'amin forestry arm has acquired a 100 per cent ownership interest in the Stillwater Forest Operation near Powell River, B.C., for about $80 million after adjustments.

It says the operation spans about 1,540 square kilometres of land, most of which is located on Tla'amin traditional territory on B.C.'s Sunshine Coast.

The statement says the nation, through its forestry business, will manage an annual allowable cut of 469,200 cubic metres of timber from the tree farm licence.

It notes the nation's forestry business and Western Forest Products have at the same time entered into a long-term fibre supply agreement to sell timber logged in the operation to the company to support its coastal B.C. manufacturing operations.

The Canada Indigenous Loan Guarantee Corp. meanwhile says it was providing a $64 million loan guarantee to support Tla'amin Nation in the transaction.

Adam Culos, vice-president of forestry and forest sustainability for the nation's business, Thichum Forest Products, says finalizing the deal is a "significant moment" for the business and the region overall.

"It gives us the opportunity to manage these lands in a way that reflects Tla'amin values and long-term stewardship, while building local employment and business opportunities and keeping more of the benefits of forestry in our community."

Western Forest Products president Steven Hofer says the transaction acknowledges the nation's unique history, values and goals, while adding certainty and stability for the company as it transitions to higher-value manufacturing.

Kristan Straub, president of the loan guarantee corporation, says the purchase puts the nation "in the driver's seat of a major forestry operation," strengthening its economic future and creating lasting opportunities for Tla'amin people.

Straub says access to affordable capital has too often been a barrier for Indigenous communities looking for greater ownership stakes in projects in their territories.

Source:  castanet.net