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B.C. reduces Western Forest Products’ AAC

Effective yesterday, the Chief Forester of the Province of British Columbia has determined a new AAC for the company’s TFL 39 of 1,416,300 cubic metres. Taking into account land base changes, the new AAC represents a reduction of approximately 263,000 cubic metres from the previous determination, and is consistent with the company’s expected result of this regularly occurring, legislated review process.

“Western is strongly committed to long-term, sustainable forest management practices, and on that basis we support Chief Forester Nicholls’ determination,” said Shannon Janzen, the Company’s Vice President and Chief Forester. “Our ability to sustainably harvest the profile of the coastal forest and increasing log availability from third parties, including our operating partnerships with First Nations, are expected to mitigate the potential impacts of this AAC reduction.”

The AACs for TFLs are determined by the Province’s Chief Forester and are intended to reflect timber conditions, regional and local economic and social interests, and environmental considerations. Legislation requires the Province’s Chief Forester to review sustainable timber harvesting levels in each TFL at least every ten years and to issue a determination relating to the same, which may recommend reductions or increases in the AAC of the TFL. As disclosed in the company’s most recent Annual Information Form, an AAC determination for TFL 39 was anticipated for 2016.

Western is an integrated Canadian forest products company and is the largest coastal British Columbia woodland operator and lumber producer. The company has an annual available harvest of approximately 6.1 million cubic metres of timber, of which approximately 5.9 million cubic metres is from Crown lands. Western has a lumber capacity in excess of 1.1 billion board feet from seven sawmills and two remanufacturing plants. Principal activities conducted by the Company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western’s operations, employees, and corporate facilities are located in the coastal region of British Columbia.