Canfor Corporation, a Canadian forestry giant, has finalized a significant transaction with two First Nations in British Columbia.
The company announced on Monday the completion of the transfer of its forest license in the Mackenzie Timber Supply Area (TSA) to the McLeod Lake Indian Band and the Tsay Keh Dene Nation.
This sale, amounting to CAD 69 million and including the disposition of associated assets from the Mackenzie sawmill, marks an important turning point in the management of forest resources in the region.
Stephen Mackie, Executive Vice President of North American Operations at Canfor, emphasized the importance of this agreement:"We believe this arrangement will support improved fiber access in the TSA and generate significant economic benefits for local and regional communities."This transaction is part of a broader trend aimed at increasing the participation of First Nations in the forestry economy. It follows a letter of intent signed in February 2022, which already outlined the sale of this forest tenure.
For the Indigenous communities involved, this agreement represents a major opportunity. Chief Johnny Pierre of the Tsay Keh Dene Nation stated in 2022 that this deal has "the potential to radically change the imbalance" in the management of forest resources in the region.
The transfer of forest tenure could also have positive repercussions for the town of Mackenzie, which has traditionally relied on the forestry industry and has been hard hit by mill closures in recent years.
As the Canadian forestry industry faces numerous challenges, this transaction illustrates a shift towards more inclusive and sustainable management of natural resources in partnership with First Nations.
