West Fraser Timber (TSX:WFG) has secured a log supply for its sawmill in Smithers from the Lake Babine First Nation.
The First Nation’s forestry company, Lake Babine Nation Forestry Limited Partnership, has signed a long-term log supply and forest management agreement with West Fraser to supply logs to the Pacific Inland Resources Sawmill in Smithers. The logs will come from a First Nations woodland licence.
“This agreement is an important step in creating a path to long-term stability in the forest sector and for communities through the recognition of Lake Babine Nation’s role as the resource steward in its traditional territory,” West Fraser CEO Sean McLaren said in a press release.
“It marks the start of a new relationship in terms of the management of B.C.’s forestry resource while providing a measure of fibre security for West Fraser. We are hopeful to create more partnerships like this one to help restore a thriving forest sector in the province.”
Signing the agreement gives the provincial government a notice to proceed with issuing the new First Nations Woodland Licence to Lake Babine First Nation.
“This agreement is a significant milestone marking the implementation of the Lake Babine Nation Foundation Agreement that was signed with the province on September 18, 2020,” said Lake Babine Chief Wilf Adam.
“Forestry is a major pillar of the Foundation Agreement and this agreement with West Fraser provides us with the foundation for increased economic opportunity with participation in the forest sector through business development and long-term employment opportunities for our members.
"This new First Nations Woodland License will also provide for increased governance over our territory’s resources, which supports improved fibre security to forest sector businesses in the region.”
