TimberWest Forest Corp. (TSX: TWF.UN) says First Nations opposition to the sale of its Vancouver Island timberlands to two pension funds is unlikely to affect the transaction.
The Hul'qumi'num Treaty Group (HTG) is opposing the proposed sale of TimberWest’s Vancouver Island forest lands to BC Investment Management Corp. and Public Sector Pension Investment Board for $1.03 billion. (See “Pension funds poised to acquire TimberWest” – BIV Business Today, April 11, 2011.)
Last week the Hul’qumi’num Treaty Group said that 113,208 hectares of forested lands and irreplaceable eco-systems within their traditional territory is being sold without consultation with First Nations, as required under Canada’s international human rights treaty obligations.
Under Canadian law, private lands sales typically are not subject to the same requirements for consultation when governments sell off or transfer Crown land.
The HTG filed a request for the equivalent of an injunction from the Inter American Commission on Human Rights, the human rights monitoring organ of the Organization of American States, which Canada joined in 1990.
Such protection, if granted, would require the federal and provincial governments to order the immediate suspension of all clear-cutting, property sales, subdivision permits, licences, and concessions for residential, commercial and industrial development projects, including logging, oil, gas and mineral exploration or extraction, and other development within lands traditionally owned, used and occupied by the Hul’qumi’num peoples and granted by Canada to the E&N Railway lands, part of the disputed territory.
TimberWest confirmed yesterday that, as part of its sales process, it made potential buyers aware that treaty processes and consultations were ongoing with the Canadian and British Columbia Governments regarding traditional territories, which overlap with private lands owned by the company.
TimberWest added that it has fulfilled, and will continue to fulfil, all legal obligations required to effect the transfer of ownership of its stapled units (common shares and debt in a single security).
The company believes the potential purchase of its stapled units will have no impact on the remedies that may be available to the Hul'qumi'num Treaty Group with regard to its claims.
At market close yesterday, TimberWest stocks were down $0.21 (3.34%) on the day.
Jennifer Harrison