Investing in our Forests
Transcription
Investing in our Forests
BRITISH COLUMBIA Investing in our Forests TABLE OF CONTENTS Forest Overview.............................................................................................................4 Overview.........................................................................................................................5 Forestry and the B.C. Economy................................................................................. 6 Our Products..................................................................................................................7 B.C. Wood Fibre Resources......................................................................................... 8 Sustainable Forests....................................................................................................10 B.C. Wood Fibre Opportunities................................................................................ 12 Fibre Connections B.C................................................................................................ 15 A Natural Advantage................................................................................................16 Business Climate, Investment, Infrastructure & Lifestyle ............................... 17 Getting Started in B.C............................................................................................... 20 Investment Attraction & Support.......................................................................... 21 B.C. Business Incentives.............................................................................................22 Infrastructure Advantages...................................................................................... 24 B.C. – Gateway to North America & Asia..............................................................25 Growing for the Future ........................................................................................... 26 Quality of Life Advantages...................................................................................... 28 Labour Force................................................................................................................. 30 Overview....................................................................................................................... 31 Education & the Forest Sector............................................................................34 Overview.......................................................................................................................35 Future Developments............................................................................................... 38 First Nations & the B.C. Forest Sector...............................................................40 Overview....................................................................................................................... 41 Tenure............................................................................................................................... 44 Overview...................................................................................................................... 45 Tenure........................................................................................................................... 46 Competitive Bid Process.......................................................................................... 48 Selected Tenure Types.............................................................................................. 50 Costs Related to Tenure............................................................................................ 51 Quick Reference.......................................................................................................... 51 Mountain Pine Beetle................................................................................................52 Web Links......................................................................................................................... 54 Contacts...........................................................................................................................57 Forest Overview TABLE OF CONTENTS Overview.......................................................5 Forestry and the B.C. Economy............ 6 Our Products...............................................7 B.C. Wood Fibre Resources.................... 8 Sustainable Forests............................... 10 B.C. Wood Fibre Opportunities........... 12 Fibre Connections B.C............................ 15 4 | Forest Overview Overview For more than a century, British Columbia’s forest sector has been the cornerstone of the province’s economy. The forest industry is one of the key components of British Columbia’s manufacturing sector. Moving into the future, B.C.’s forest sector is well-placed in its role as a leading supplier of wood construction and finishing wood products and as one of the world’s largest exporters of wood fibre. B.C. has a skilled workforce, well-established primary manufacturing infrastructure, an entrepreneurial value-added sector, talented researchers and world-class forests. Ownership of Provincial Lands 2009 (ha) Private ownership 4,188,346 Federal 1,037,102 First Nations 134,878 B.C.’s forests are primarily owned by the Province with about 95 per cent being in public ownership. The provincial government manages forests in the public interest, balancing environmental, economic, and social issues while ensuring longterm sustainability. “ Crown Provincial 89,512,571 British Columbia is Canada’s leading supplier of wood construction and finishing wood products and is one of the world’s largest exporters of wood fibre. The Province is also a world leader in sustainable forest management, and has been recognized for its forest management standards. British Columbia has 55 million hectares of public forest land Total Provincial land base 94,872,896 (ha) ” B.C. has a vast and diverse array of forests and rangelands with almost 60 per cent or 55 million hectares classified as forest land. Coniferous trees dominate 83 per cent of B.C.’s forests. In descending order, spruce, lodgepole pine, hemlock, true fir and Douglas-fir are the five most common forest types. Generally, western hemlock, western red cedar and Douglas-fir can be found in the temperate rainforests along the Pacific Coast, while pines and spruces come from the dry and cooler forests of the interior of British Columbia. B.C.’s forests contain enormous volumes of timber – roughly 11 billion m3 – with spruce, lodgepole pine, and hemlock being 61 per cent of the growing stock. Approximately half of the crown forest is considered harvestable. The area harvested on public forest land has averaged 180,000 hectares per year since 1990, plus there is an estimated additional 20,000 hectares that is harvested each year on private forest land. Investing in our Forests Forest Overview | 5 Tree Species in B.C. Forests Other Conifer 2% Aspen 5% Other Broadleaf 2% Western red cedar 6% Spruce 21% Douglas-fir 11% Lodgepole pine 20% True fir 13% Hemlock 20% FAST FACTS The Allowable Annual Cut (AAC) is the maximum amount of timber that may be harvested per year from a specified area of land. Currently, the overall AAC in B.C. is 83 million m3. The AAC is set at a sustainable level for a 10 year period. The Province’s Chief Forester reviews the timber supply on a regular basis, normally every ten years. Following that review, the AAC may increase, decrease or remain unchanged. TOP TEN HOLDERS OF AAC – 2010* 1 2 3 4 5 6 BC Timber Sales Canadian Forest Products Ltd. (Canfor) Western Forest Products Inc. West Fraser Mills Ltd. Tolko Industries Ltd. International Forest Products Limited (Interfor) 7Tembec 8 Louisiana-Pacific Canada Ltd. 9 RPP Holdings Inc. 10 Abitibi Consolidated Company of Canada Forestry and the B.C. Economy Forestry is one of B.C.’s largest manufacturing sectors and its largest single source of exports. The forest sector accounted for 4.6 per cent of B.C. employment and 9.2 per cent of all economic activity (indirect and induced) in 2009. The forest sector generates $9.07 billion in economic activity for the province each year. In 2009, the value of B.C.’s forestry products accounted for 30 per cent of B.C.’s total exports and 31 per cent of Canada’s total for forest products exports. The pulp and paper sector is significant to the British Columbia economy with total pulp and paper exports representing approximately 46 per cent of the total value of B.C. forest products exports in 2009. Pulp and paper exports totalled $3.5 billion in 2009, 14 per cent of all provincial exports. China is B.C.’s largest export market for pulp, representing 40 per cent of the province’s total pulp exports. “ British Columbia is a major player in the world-wide forestry sector. The province is the world’s largest exporter of softwood lumber to international markets. ” As B.C. continues to diversify its markets, China has emerged as B.C.’s second largest export market representing a 16.5 per cent share of B.C. total forest product exports. Japan’s market share is 12.3 per cent. Overall the U.S. remains the most important forest product export destination for British Columbia, accounting for 52.8 per cent of exports in 2009. The province’s primary wood products export market is the United States with Asian markets replacing Europe as the second major regional market. In 2009, B.C.’s annual lumber shipments to China were more than $327 million, almost tripling from 2007. *in order of AAC holding and as of March 31, 2010. 6 | Forest Overview Investing in our Forests Our Products B.C.’s forest products can be grouped into three broad categories: commodities, traditional value-added and next generation manufacturing. Commodity production is dominant in British Columbia’s forest sector. Commodity products include standard dimensional lumber, pulp and paper, and panel boards. These products compete in the extremely cost-competitive global market and are typically manufactured by large, integrated primary producers. These primary producers may also manufacture engineered wood products and cogenerate electricity. “ B.C. Forest Product Export Market Sales 2009 – $7.6 billion All Others 11.4% China (incl HK) 16.5% USA 52.8% Japan 12.3% British Columbia produces a full range of forest products from logs to lumber to engineered wood products and beyond for domestic and international use. EU 7% ” Value-added products include a wide array of products such as treated lumber, engineered wood products, shakes and shingles, posts, poles, log and timberframe homes, mouldings, and other finished or semi-finished goods. Value-added manufacturing is done mainly by small- and medium-sized firms, some of which may also manufacture commodity lumber and panel products. The next generation of forest products and services include engineered wood products, new building systems, bio-chemicals, and bio-energy alternatives. 12,000 30% 10,000 25% 8,000 20% 6,000 15% 4,000 10% 2,000 5% 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Forestry and Logging Pulp and Paper Manufacturing Investing in our Forests Share of Goods Sector Millions of chained 2002 dollars B.C. Forestry GDP and Shares of B.C. Goods Sector, 1997-2009 0% Wood Product Manufacturing Share of Goods Sector Forest Overview | 7 B.C. Wood Fibre Resources prince george ! $ " !# " $ ! # 7 # kamloops area ! " ! ! ! # !"" ! # "" " !$ " .) ! " ! " 7 # # ! ! vancouver ! $ $! # $# ! ! ! $ +! ! # ! !" " ! !" ! ! " " # "" ! ( " !!!" " " "! " ! # " ! " " 0 8 | Forest Overview 50 1 00 ) " " " 200 Created: October 2010 Projection/Datum: BC Albers/NAD83 300 Km 400 Fibre Regions & major Mills 2010 7 legend Timber Sales Offices Fibre Regions operating mills Chip Mills Log Home Mills " Lumber Mills Pole and Post Mills Pulp and Paper Mills $ Shake and Shingle Veneer, Plywood, OSB and Other Panel Mills # Other Primary Processing Mills # transportation Railway Highway Î Ports www.canadaspacificgateway.com canada british columbia Forest Overview | 9 Area Certified in British Columbia compared with the World (January 2009) 90 Within B.C. three major certification standards are used: Canadian Standards Association (CSA), Forest Stewardship Council (FSC) and Sustainable Forestry Initiative (SFI). 60 Chile France Brazil Malaysia Australia Germany Russia Finland Canada Sweden 30 0 Forest sustainability is a guiding principle in the management of B.C. forests. Certification and chain of custody are playing increasing roles in the production and marketing of B.C. wood products. The province is a world leader in third-party forest certification. In September 2010, British Columbia had 54 million hectares (more than 133 million acres) certified using at least one of three third-party certification programs. B.C. has more certified land than any other jurisdiction in the world, except for Canada as a whole. 120 British Columbia USA Millions of hectares certified 150 Sustainable Forests Canada has 91 per cent of its original forest cover, more than any other country, and its rate of deforestation has been virtually zero for more than 20 years. logo redrawn by Chris Young not perfect, colours just sampled from jpg For information on British Columbia certification by area and type see www.certificationcanada.org/maps/bc.php and for an overview relating to certification see www.naturallywood.com/Sustainable-Forests/Third-Party-Certification.aspx Source: Forest Products Association of Canada 10 | Forest Overview Investing in our Forests British Columbia Forest Products Type Typical Products Commodity Boards Panels Hog fuel Pulp and paper Standard dimensional lumber Art Glulam Posts & poles Dissolving pulps (leads directly to biochemicals and materials like rayon) Log/timber homes Traditional Value-added Next Generation Manufacturing Chips Cabinets and furniture Plywood Laminated veneer lumber (LVL) Mouldings Pallets & boxes Shakes and shingles Tall oil Treated lumber Windows & doors Wood I-joists Alternative energy products - wood pellets, ethanol, bio-diesel, xylose, syngas The Vancouver 2010 Olympic and Paralympic Winter Games showcased B.C. wood products, wood construction techniques and advanced wood engineering and design. The Richmond Olympic Oval, with its unique, all-wood roof highlights the range of standard materials available directly from British Columbia mills. Its construction used one million board feet of spruce-pine-fir commodity dimension lumber, 19,000 sheets of Douglas-fir plywood in the roof panels and one million board feet of Douglas-fir lam stock lumber in the glulam beams. For more on B.C. forest products see the table on the left. Engineered wood products - cross-laminated timbers, high strength and stiffness composite lumber products, high strength and stiffness hybrid engineered wood products, new fibre-polymer composite wood products New building systems Under Development and of Interest to B.C. Hemicellulose separation from chips to produce furfural Methanol capture during pulping to make chlorine dioxide, commercial grade methanol and as an input to make dimethyl ether Resins and carbon fibres from lignin Investing in our Forests Forest Overview | 11 B.C. Wood Fibre Opportunities British Columbia has a huge forest industry that is export oriented. The province is home to efficient logging operators and pulp manufacturers and our Interior lumber producers are among the largest and most cost-competitive in the world. Our forestry companies have and can offer world-leading management and technical expertise in the lumber, pulp and paper sectors. British Columbia is a leader in advanced wood technology, including design and construction of buildings which are resistant to earthquakes and employ the large scale use of wood. “ In 2009, B.C. was the number one supplier of softwood lumber by volume to the United States and Japan and the number one supplier of softwood lumber by value to Korea. ” Our research, technology and innovation endeavours have the ability to unlock the potential of forest resources previously dismissed as waste or unusable. Under-utilized species, smaller stems, dead trees, mill residue, and debris from silviculture or harvesting, now have new value as raw materials for next generation forest products. New opportunities may open up for both primary and secondary producers, as well as for new participants in the forest sector. 12 | Forest Overview Investing in our Forests In the case of under-utilized fibre, the provincial government will have the ability (expected Spring 2011) to issue a secondary tenure (known as a Forestry Licence to Cut or Fibre Supply Licence to Cut) to utilize logging debris that is left behind on landings and roadsides, provided that the current tenure holder has notified the government that they have no further interest in the material. This new tenure will be a tool that can be used when a third-party agreement such as a business-tobusiness (B2B) arrangement cannot be made between the current tenure holder and investors interested in the under-utilized fibre resource. Tenure is how the government transfers specific rights to use Crown (public) forest and range land and resources to others. Private forest companies, communities and individuals gain the right to harvest timber in public forests through tenure agreements with the B.C. government. Increasing the utilization of wood fibre from forests is a key part of the BC Bioenergy Strategy (www.energyplan.gov.bc.ca/bioenergy/). In the Interior, new opportunities are emerging to utilize mountain pine beetle killed trees for the generation of electric power, the manufacture of wood pellets and other wood fibre derived products. On the coast, the use of logging waste has the potential to add further diversification. There are significant opportunities to enter into business-to-business relationships to gain access to wood fibre on virtually any tenure that involves timber harvesting. This includes: major licences, timber sales licences, community forest agreements, woodlots, licences to cut, and government programs like “Forests for Tomorrow”. Investing in our Forests Forest Overview | 13 Opportunities exist to expand or tap into new markets. The B.C. forest sector has ready access to the major markets of the United States, Japan and Korea, where B.C. has already established connections. B.C. is Canada’s Pacific Gateway to Asia and beyond. Our ports and well developed rail and road infrastructure provide access to Asian and North American markets. New provincial initiatives such as the Wood First Initiative and the Wood First Act will help generate new demand for wood. The Act promotes the use of wood products by requiring provincially-funded building projects to use wood as the primary construction material. In an average year, the Province funds about $3 billion worth of capital projects. The Wood First Initiative will help stimulate the domestic market by promoting the structural use of wood for commercial, institutional and mid-rise residential buildings. New investment opportunities will become possible as new and innovative wood building products are developed. As well, B.C.’s technical expertise lends itself to additional or expanded international opportunities and partnerships. 14 | Forest Overview Investing in our Forests Fibre Connections B.C. Fibre Connections BC is one avenue to accessing wood fibre. The Fibre Connections BC network includes designated Fibre Officers who are professionals from various natural resource sector ministries and agencies that are linked together within their sub-regional operating areas across the province. Fibre Officers work to improve the flow of fibre from harvesters and other producers by linking people, through facilitating business-to-business transactions, and by aligning individual requests with specific informational resources. Informational resources could include information on fibre opportunities in a local area or other area of B.C., links to brokers, harvesters, mills, manufacturers, First Nations, Community Forests, Woodlots, etc. More information: www.for.gov.bc.ca/mof/fcbc Front Counter BC 1-877-855-3222 (North America Toll Free) Outside North America, please call +1.604.586.4400 Investing in our Forests Forest Overview | 15 A Natural Advantage TABLE OF CONTENTS Business Climate, Investment, Infrastructure & Lifestyle .................... 17 Getting Started in B.C...........................20 Investment Attraction & Support.... 21 B.C. Business Incentives....................... 22 Infrastructure Advantages................. 24 B.C. Gateway to North America & Asia.......................................................... 25 Growing for the Future .......................26 Quality of Life Advantages................. 28 16 | A Natural Advantage Business Climate, Investment, Infrastructure & Lifestyle Why Choose BC? B.C.’s Investment Advantage British Columbia’s rich natural resources, innovative, skilled and multicultural workforce, unparalleled quality of life and gateway location between North America and Asia provide the foundation for expansive economic opportunities. “ Economic agreements such as The New West Partnership Agreement between British Columbia, Alberta and Saskatchewan create Canada’s most open and competitive economy where goods, services, workers and investments can move freely and efficiently between the three provinces. Launched in April 2010, the agreement creates Canada’s largest interprovincial barrier-free investment market. ” B.C. offers one of the most attractive investment climates in North America. Business and personal tax rates are among the lowest in North America. Regulations are streamlined to respond to business needs. The province’s fiscal position is solid, with Triple-A credit ratings from both Standard and Poor’s and Moody’s Investors Service, and we are investing in the future through ongoing investments in infrastructure and public services. Investing in our Forests A Natural Advantage | 17 Provincial strategies open up opportunities for investment, diversify community economies, and create new opportunities for companies, including those in the forest sector. The Bioenergy Strategy (www.energyplan.gov.bc.ca/bioenergy/), for example, aims for B.C. biofuel production to meet 50 per cent or more of the province’s renewable fuel requirements by 2020. The Government of British Columbia, by establishing a provincial requirement for renewable fuel content in the gasoline and diesel pool, is facilitating market expansion for bio-based transportation and home heating fuels, including the development of such forest-based products as cellulosic ethanol. B.C.’s Renewable & Low Carbon Fuel Requirements Regulation will reduce the carbon intensity of transportation fuels through two major requirements: the Renewable Fuel Requirement (five per cent renewable content in gasoline beginning in 2010 and three per cent renewable content in diesel in 2010, four per cent in 2011, and five per cent for 2012 onward); and the Low Carbon Fuel Requirement (10 per cent reduction in carbon intensity by 2020). There are exciting opportunities developing to leverage the carbon storage potential of our forests. The province’s Greenhouse Gas Reduction (Cap and Trade) Act, (www.leg.bc.ca/38th4th/3rd_read/gov18-3.htm) enables the implementation of a cap and trade system in conjunction with regional partners. B.C. forests could play a key role in carbon trading, a new and developing sector of the global economy, worth an estimated $144 billion US in 2009, up 6 per cent, even though global GDP declined. The North American Free Trade Agreement (NAFTA) provides firms locating in B.C. with access to markets in the United States and Mexico duty-free, with the exception of softwood lumber, which is covered under a separate agreement with the United States, regardless of corporate nationality. Materials and equipment can also be sourced duty-free from the U.S.A. and Mexico. Canada is currently working to establish free trade agreements with both South Korea and Singapore. Additionally, Canada has signed a Foreign Investment and Promotion Agreement with India and is negotiating one with China. 18 | A Natural Advantage Investing in our Forests Encouraging private-sector investment The efforts of the B.C. government are focused on creating and maintaining a competitive business environment, which attracts new investment, and retains current investments. Of particular importance are the conditions necessary to support a strong and attractive business environment, the programs to encourage private sector investment and the initiatives to support economic growth. >> British Columbia has no general corporation capital tax, no employer payroll taxes, no franchise tax and no machinery sales tax. >> Business registrations can be completed in a matter of hours. A company registered in British Columbia can have as few as one director – and there is no residency requirement for directors of B.C.-registered companies. >> British Columbia’s general corporate tax rate has been cut by one-third since 2001. Currently 10.5 percent, it is expected to fall to 10 percent in 2011. >> B.C. taxes qualifying businesses at a rate of 2.5 per cent on their first $500,000 of business income. The government of B.C. intends to reduce this rate to zero percent by April 1st, 2011. >> Effective July 1, 2010, B.C. moved to a Harmonized Sales Tax (HST) which means real cost savings for business. Expected savings amount to nearly $2 billion, which includes $140 million in the forestry sector. >> By 2013, planned changes to B.C.’s combined federal and provincial corporate tax rate will result in a rate reduction to 25 per cent – the lowest in the G7. >> British Columbia provides refundable tax credits and exemptions for software development, manufacturing, research and development, mining, oil and gas, film and TV production, new media, international financial activities and licensing intellectual property from a British Columbia location. >> B.C.’s environmental assessment legislation establishes fixed time-lines for project reviews. Permitting and licensing are streamlined for mining and other major investments. In a study released in May 2010, KPMG reported that Vancouver has the lowest business taxes among 41 international cities in North America, Europe, Asia and Australia with populations exceeding 2 million. The study measured the combined impacts of income tax, capital tax, sales tax, property tax, local business taxes and labour costs. B.C. CITIES WIN TOP MARKS Both Vancouver and Prince George were awarded top spots in KPMG’s 2010 Competitive Alternatives report. Prince George was ranked as having the most competitive business costs of any jurisdiction in KPMG’s 13 city Pacific U.S. Canada survey area. Vancouver, in a comparison of 41 international cities (population more than two million), ranked fifth overall in business costs and was first for tax competitiveness. Source: KPMG, Competitive Alternatives 2010, www.competitivealternatives.com >> On a personal level, B.C. residents pay the lowest provincial personal income tax in Canada for incomes up to $118,000. Investing in our Forests A Natural Advantage | 19 Getting Started in B.C. British Columbia actively encourages investment including investment by nonCanadians and places few restrictions on foreign investors. Currently, there are nearly 1000 international companies operating in British Columbia. Doing Business in British Columbia, ( www.investbc.com/Documents/DB_in_ BC_Sept0507.pdf) a free publication of the B.C. government, is written with the business investor in mind. Companies and entrepreneurs from abroad will find a wealth of information on starting and operating a business in B.C. Developed in cooperation with Fraser Milner Casgrain LLP, a leading Canadian law firm, it provides an introduction and quick reference on a number of key issues: >> Investing in Canada >> Establishing or acquiring a business >> Hiring employees >> Buying equipment >> Obtaining permits and licences >> Selling your products and services >> Importing or exporting >> Electronic commerce >> Responsibilities of corporate directors and officers >> Protection of intellectual property >> Public companies >> Privacy issues >> Special tax incentive programs >> Selling and partnering with government >> Special considerations for specific industries To obtain contacts and information for moving your investment plans forward contact: Invest British Columbia 999 Canada Place, Suite 730 Vancouver, British Columbia Canada V6C 3E1 Tel:1.604.775.2202 Fax:1.604.775.2070 Email: [email protected] 20 | A Natural Advantage Investing in our Forests Investment Attraction & Support B.C. Renaissance Capital Fund Ltd. Attracts successful venture capital managers and their funds to British Columbia to develop promising, innovative technology companies. The Fund invests in venture capital partnerships managed by experienced investment professionals. It focuses on four key technology sectors: information technology, digital media, clean technology and life sciences. www.bcrcf.ca/BCRCF/ BC Bioenergy Network Acts as a catalyst for deploying near-term bioenergy technologies and supporting mission-driven research to build a world class bioenergy capability in B.C. The BC Bioenergy Network, an industry-led initiative, invests in pilot and full scale technology demonstrations as well as supports targeted capacity building. It was established in April 2008 with a $25 million grant from the B.C. government. www.bcbioenergy.ca Venture Capital Program Offers 30 per cent refundable tax credit for investments in eligible small British Columbia companies engaged in alternative energy research and development. www.tted.gov.bc.ca/TRI/ICP/VCP/Pages/default.aspx Equity Capital Budget Supports clean small business. Specific requirements must be met to be eligible such as business size and activities. Cleantech Venture Capital Budget Supports the government’s commitment to stimulate investment in the “Cleantech” sector. In addition to the Equity Capital Budget criteria, an eligible small businesses must also be substantially engaged in the manufacture, processing and research and development within B.C. for commercial exploitation of technologies that: >> increase energy efficiency and conservation, or >> reduce greenhouse gas emissions, or >> reduce the environmental impact of energy production, generation, storage, transmission, delivery, provision or conversion. Community Venture Capital Budget Supports regional economic diversification. In addition to the Equity Capital Budget criteria, ‘eligible small businesses’ must also be substantially engaged in an activity that promotes community diversification. For additional information: www.tted.gov.bc.ca/tri/ICP/VCP/ECP/Pages/default.aspx Investing in our Forests A Natural Advantage | 21 B.C. Business Incentives British Columbia provides provincial incentives to encourage business investment and innovation. Incentives, which may be as tax credits or refunds, are available for research and development, machinery and equipment investment and other sector specific activities. www.investbc.ca/businessincentives.htm Canada – Investments in Forest Industry Transformation Program (IFIT) Supports Canada’s forest sector in becoming more economically competitive and environmentally sustainable, through targeted investments in innovative technologies. Launched in August 2010, IFIT will provide $100 million over four years for projects that implement new technologies leading to non-traditional highvalue forest products and renewable energies. IFIT will help ensure that promising breakthrough technologies in the forest sector continue to evolve towards full commercial viability. www.cfs.nrcan.gc.ca/subsite/investments-forest-industry-transformation Canada – Next Generation Renewable Power Initiative Supports the development, commercialization and implementation of advanced clean energy technologies in the forestry sector. Announced in the 2010 federal budget, with an allocation of $100 million over the next four years, this program is under development. www.budget.gc.ca/2010/home-accueil-eng.html Canada – Scientific Research and Experimental Development Tax Incentive Program Encourages Canadian businesses of all sizes and in all sectors to conduct research and development in Canada. Canada is a world leader in supporting and encouraging research and development through Scientific Research and Experimental Development tax credits: >> Canadian controlled private corporations qualify for federal tax reductions equal to 35 per cent of eligible expenditures on SR&ED. Other corporations can receive a 20 per cent tax reduction. >> British Columbia provides a tax reduction equal to 10 per cent of eligible R&D expenditures to all corporations. www.cra-arc.gc.ca/sred/ 22 | A Natural Advantage Investing in our Forests Northern Development Initiative Trust (NDIT) Focuses on stimulating economic diversification and job creation in central and northern British Columbia. Northern Development provides direct incentives to private business to create new jobs throughout the region via $30 million in dedicated funding to support capital investment and new job training in central and northern B.C. Some areas of funding are: economic development, forestry, mining, pine beetle recovery, small business, and transportation. www.nditrust.ca Sustainable Development Technology Canada (SDTC) Finances and supports the development and demonstration of clean technologies. SDTC, a not-for-profit foundation, operates two funds aimed at the development and demonstration of innovative technological solutions. The $550 million SD Tech Fund™ supports projects that address climate change, air quality, clean water, and clean soil. The $500 million NextGen Biofuels Fund™ supports the establishment of first-of-kind large demonstration-scale facilities for the production of nextgeneration renewable fuels. www.sdtc.ca/index.php?page=home&hl=en_CA Western Economic Diversification Canada Provides support for economic development projects focused on helping B.C. organizations research and develop clean energy and environmental technologies. Funding has also been provided to the B.C. forest-sector including the value-added sector. Accelerates investment attraction to B.C. and supports the success of new products and processes. www.wd.gc.ca/eng/home.asp Investing in our Forests A Natural Advantage | 23 Infrastructure Advantages British Columbia is strategically located to reach key and growing global markets. The Province’s infrastructure competitiveness includes: low cost electricity and natural gas, a robust transmission and distribution system delivering uninterrupted power to many regions of the province, strategic ports with rail access on the Pacific Ocean, an extensive road network and advanced communication capability. Whether you need to ship products by sea or land, communicate with a customer instantly or require clean energy to run your business, B.C. can meet your needs. RAIL Canada’s transcontinental railways serve ports on the Atlantic, Pacific and Gulf coasts, linking with the U.S. and Mexican rail companies through various partnerships. ROAD An extensive all-weather highway network makes transporting goods and services to North American markets seamless and reliable. PORTS The ports of Vancouver and Prince Rupert are the two closest major North American ports to Asia and are ice-free year-round. They are excellent links to international markets. AIR Vancouver International Airport is Canada’s largest global gateway to Asia and is a growing freight distribution hub. Prince George International Airport is a strategic refuelling point, located on the ‘great circle route’ between the United States and Asia. ELECTRICITY B.C. is committed to ensuring that clean or renewable electricity generation continues to account for at least 90 per cent of total generation. Sources of energy are to include those that are constantly renewed by natural processes, such as large and small hydroelectric, solar, wind, tidal, geothermal, wood residue and energy from organic municipal waste. B.C. currently has one of the lowest electricity rates in North America. COMMUNICATIONS Broadband connectivity is available in most communities allowing 92 per cent of British Columbians access to Internet services. An advanced communications infrastructure provides telephone, broadcasting, cable, wireless and other information services at competitive rates. 24 | A Natural Advantage Investing in our Forests PRINCE RUPERT Beijing Shanghai Tokyo Seoul Osaka San Francisco Los Angeles Taipei Delhi Honolulu Manila Kona London Montréal Toronto Chicago VANCOUVER Amsterdam Frankfurt Memphis Kahului Singapore Nadi Sydney Auckland BC GLOBAL ACCESS B.C. – Gateway to North America & Asia Vancouver International Airport and the Ports of Vancouver and Prince Rupert are the closest gateways to Asia from North America. Shipping Days from BC Ports* China Vancouver Dalian Hong Kong Ningbo Qingdao Shanghai Tianjin Xingang 13.7 14.8 13.2 13.2 13.2 14.2 14.2 14.4 Prince Rupert Japan Vancouver Vancouver Prince Rupert Korea Vancouver Prince Rupert 14.3 14.3 14.2 14.8 14.8 Kobe Nagoya Osaka Shimizu Tokyo Tomakomai Yokohama 11.3 11.0 11.4 10.7 10.6 11.8 10.4 12.6 Prince Rupert India 16.0 12.2 12.6 12.0 11.9 Chennai Kolkata (Calcutta) Nhava Sheva Tuticorin 22.8 23.0 25.2 23.2 24.0 24.2 26.4 Kunsan Kwangyang Masan Pusan 13.3 13.0 12.7 12.7 12.7 13.7 13.2 13.0 11.9 24.4 Incheon 13.9 10.9 12.9 *Shipping days calculated at vessel speed of 15 knots. Investing in our Forests A Natural Advantage | 25 Growing for the Future The Province is investing in the future through ongoing investments in infrastructure and public services. As of September 2010, B.C.’s Major Projects Inventory contained 956 major construction projects planned or underway, involving capital investment exceeding $197 billion. >> Invested over $39 million to improve 33 airports across the province, through the Transportation Partnerships Program. >> As part of the Pacific Gateway Strategy, the Province has invested $30 million in the $170-million Phase I expansion of the Port of Prince Rupert. Phase II will include an additional $650-million expansion of the Port. Investments in B.C. roads totalling $7.1 billion will reduce congestions and ensure the efficient flow of goods to and along Canada’s transcontinental highway, down to the U.S. border and throughout the Vancouver area. Already, the Kicking Horse Canyon improvements to the Trans Canada Highway are providing a competitive corridor for the east-west movement of goods to ports and a safer and more efficient journey for all travelers. Prince Rupert’s 500,000-TEU (20-foot equivalent units) Container Terminal offers Asian shippers a timely, direct, congestion-free corridor to Memphis, Chicago and other major American and Canadian cities. According to Drewry Shipping Consultants Ltd., in 2010, Prince Rupert was the fastest growing port in North America and the eighth fastest growing port globally for container traffic. Prince Rupert is strategically located for B.C.’s forestry sector, and the port will be expanding its cargo capacity to accommodate forestry product exports. Currently containerized forest products are the port’s strongest growth area. Port Metro Vancouver is British Columbia’s and Canada’s largest port with 28 major marine cargo terminals, three Class 1 railroads, numerous bulk and break-bulk shipping lines and agents, plus a diverse and expanding range of services. Public and private sector infrastructure investments totally $4.2 billion will increase its shipping capacity to six million TEUs by 2020. To accommodate this increased container and bulk traffic, extensive road and rail improvements are being undertaken. Deltaport’s $400 million third berth, located at Roberts Bank, 35 kilometers south of Vancouver’s inner harbour opened in January 2010, and is part of Port Metro Vancouver’s infrastructure investments. It is the largest container terminal in Canada, handling approximately 45 per cent of the containerized cargo that moves through Canada’s west coast and more than half of the containerized cargo through Port Metro Vancouver. The third berth project increases Deltaport’s capacity by up to 50 per cent from 1.2 million TEUs to 1.8 million TEUs, and adds approximately 20 hectares of container storage facilities and the first quad cranes in North or South America. Additional port improvements include a proposal for a second container terminal at Roberts Bank to expand container capacity. 26 | A Natural Advantage Investing in our Forests NORTHWEST TRANSMISSION LINE TURNAGAIN KUTCHO CREEK Dease Lake BRITISH COLUMBIA Hwy 37 GOLDEN BEAR RED CHRIS GJ GALORE CREEK Iskut SCHAFT CREEK KLAPPAN Bob Quinn Lake FOREST KERR IPP Ca US na A da BRONSON NTL ROUTE ALTERNATIVES EXISTING TRANSMISSION LINE INDEPENDENT POWER PRODUCER MINE Future Bob Quinn Substation SNOWFIELDS KSM Stewart Meziadin Substation Meziadin Junction Cranberry Junction Hw y3 7 New Aiyansh Kitwanga Nisga Hw y1 6 ’a Hw y A11-037 Skeena Substation Terrace 50 mi 50 km The Northwest Transmission Line, a 287 kilovolt transmission line, running approximately 335 kilometres in northern B.C., will electrify the Highway 37 corridor by extending B.C.’s high voltage transmission grid to the region. Upon completion, this line will provide clean electricity to support industry developments in the area and a secure interconnection point for clean generation projects. Provided the project receives an Environmental Assessment Certificate, BC Hydro plans to begin construction in Spring 2011. Investing in our Forests A Natural Advantage | 27 LIVEABILITY RANKING 2010, 100=ideal Vancouver 98.0 Vienna 97.9 Melbourne 97.5 Toronto 97.2 Calgary 96.6 Helsinki 96.2 Sydney 96.1 Perth 95.9 Adelaide 95.9 Auckland 95.7 Source: Economist Intelligence Unit Quality of Life Advantages B.C.’s temperate climate, cosmopolitan cities, high standard of living and clean environment make the province a great place to live and work. No matter where you choose to live, you’ll be close to natural amenities – even in our major cities. Vancouver consistently ranks highly in worldwide ratings for liveability. Mercer’s 2010 Quality of Life Survey of 221 cities ranks Vancouver fourth while according to the Economist Intelligence Unit’s 2010 liveability ranking, Vancouver is the most liveable city in the world. British Columbia offers: >> An unrivalled natural environment >> Vibrant first nations communities >> Highly skilled and educated population >> Low cost of living >> Low crime rates >> Rich cultural diversity >> Social stability >> Superior and low cost healthcare >> Superior educational system >> Opportunities for personal and business growth “ Front Counter BC Health and education are priorities in British Columbia. We have Canada’s highest overall education levels and highest life expectancy. B.C.’s health care delivery system was rated as second best among all Canadian provinces. ” Source: for health care delivery system info: Live Work Invest in BC 2009 BC Check Up, Institute of Chartered Accountants of BC 1-877-855-3222 (North America Toll Free) Outside North America, please call +1.604.586.4400 28 | A Natural Advantage Investing in our Forests PhotoBC A Natural Advantage | 29 Labour Force 30 | Labour Force Overview British Columbia has an educated and skilled labour force of more than 2.4 million. Its large flexible labour pool has continuously adapted to the diverse needs of British Columbia’s employment sectors. Sixty-eight per cent of employees in B.C. have continued their education after high school with almost 26 per cent holding a university degree. “ The B.C. forest sector had direct employment of 52,000 jobs in 2009, 2.3 per cent of B.C. total employment. There are more than 1.1 million job openings expected for B.C. between now and 2019. ” Over three-quarters of these job openings are expected to require some postsecondary or a higher level of education and training. The greatest number of job openings is expected in occupations requiring some post-secondary education, college or trade certificate. * Of these approximately 60 per cent will be replacement positions with the remaining 40 per cent new job openings created due to economic growth. The projected average annual employment growth during that period for B.C. is 1.8 per cent. In 2009, the forest sector directly employed 52,000 and when indirect effects are included the forest sector accounted for more than 100,000 B.C. jobs. Labour Solutions Supporting Forest SECTOR Investment Skills shortages are a commonplace issue globally. B.C. is meeting the challenge in a number of different ways. The province’s expanding economy – 3.8 per cent projected increase in real Gross Domestic Product for 2010 1 and outstanding quality of life are global magnets for talent. International immigration is a key source of new skills for British Columbia. The Province is working on a number of initiatives and strategies in partnership with industry, employers and other partners to meet its labour needs. There are a number of programs that will assist investors interested the forestry sector with their labour force needs. * For information on B.C.’s post secondary education and training institutions’ forestry offerings see page 35. 1 Conference Board of Canada, Provincial Outlook: Spring 2010 Investing in our Forests Labour Force | 31 WorkBC www.workbc.ca WorkBC is the Province’s comprehensive action plan to address skills requirements while preparing for continued long term economic growth and success. The plan focuses on five strategic action areas: >> Keeping the workforce we have in B.C. >> Developing the skills of our existing workers >> Increasing the labour market success for aboriginal people >> Attracting and recruiting new workers >> Addressing regional skills shortages Industry Training Authority www.itabc.ca The Industry Training Authority (ITA) is responsible for industry training and apprenticeship in B.C. Training programs are available in over 140 designated trades, with several trades training programs of interest to the forestry industry such as: millwright, sawfiler, benchperson, planermill maintenance technician, welder, and machinist. Since 2004, participation in trades training programs has grown from over 14,000 to over 40,000 participants. To help ensure an ongoing supply of skilled workers across the province, the B.C. Training Tax Credit Program (www.sbr.gov.bc.ca/business/income_taxes/ttc/ default.htm ) provides refundable tax credits for employees and employers engaged in apprenticeship programs. British Columbia offers this tax credit program for employers and apprentices to encourage employers to sponsor apprentices, increase apprentice registrations, and encourage higher rates of apprenticeship completion. Provincial Nominee Program www.welcomebc.ca/wbc/immigration/come/work/about/index.page Another initiative to help meet the labour needs of British Columbia’s businesses is the Provincial Nominee Program (PNP). The BC PNP is an immigration program run jointly by the Government of BC and the Government of Canada. PNP can help companies in British Columbia recruit and retain foreign workers who have skills that are in high demand. The program provides accelerated immigration for qualified workers and business entrepreneurs who are looking to become permanent residents of Canada, and intend to settle in British Columbia. The PNP considers applications for individuals who will be employed in management, professional, technical and other skilled jobs, and in select entry level and semi-skilled jobs in the tourism and hospitality, long-haul trucking and food processing industries. The business component of the BC PNP offers accelerated immigration for investment-ready and qualified entrepreneurs ready to invest and settle in B.C., and become permanent residents of Canada. This component gives priority to candidates who demonstrate the greatest potential to create a successful business and contribute economically to the province. The Provincial Nominee Program has been expanded to speed up the immigration process for skilled immigrants with job offers in B.C. 32 | Labour Force Investing in our Forests From March 2001 to December 2009, close to 10,000 skilled and business immigrants were attracted to British Columbia through PNP. In 2009, B.C. attracted 2,658 skilled workers and entrepreneurs – more than 6,200 new immigrants including family members. New West Partnership Trade Agreement Over 20,000 skilled workers immigrate to British Columbia every year and they, along with their families, enrich B.C.’s talent pool, international networks, cultural diversity and multilingual capabilities. www.newwestpartnershiptrade.ca/index.asp The New West Partnership Trade Agreement, (effective July 1, 2010) is a compre hensive economic agreement between British Columbia, Alberta and Saskatchewan. The Agreement eliminates government impediments that affect trade, investment and labour mobility. It creates Canada’s most open and competitive economy where goods, services, workers and investments can move freely and efficiently between the three provinces. The Agreement applies to all government measures (legislation, regulations, standards, policies, procedures, etc.) relating to trade, investment and labour mobility. It applies to all government entities, including Crown Corporations, municipalities, schools, hospitals, academic institutions, and government-owned entities. Some important attributes of the Agreement include its “negative listing” approach, in which all government measures are subject to the Agreement’s market-opening rules unless specifically excluded. Standards and regulations in all three provinces must be reconciled so that a business satisfying the requirements of one province will be deemed to satisfy the corresponding requirements of the other two provinces. Businesses established in one province are able to carry on business in the other two, without further requirements to register the company. Workers no longer need to meet additional certification requirements in order to work in the region. Government procurement at all levels has been opened to full competition. Local preferences have been eliminated. Subsidy practices have been curtailed. Also important is that the Agreement is backed up by an effective dispute resolution mechanism. British Columbia is a great place to work, live and invest. Our diverse and expanding economy is generating a wide range of exciting investment opportunities. We offer a ready labour force, a number of programs targeted to employers’ labour needs and over 15 educational facilities with focused training programs for developing the forestry workers and professionals of the future (see page 35 for more information on education opportunities). Investing in our Forests Front Counter BC 1-877-855-3222 (North America Toll Free) Outside North America, please call +1.604.586.4400 Labour Force | 33 Education & the Forest Sector TABLE OF CONTENTS Overview.....................................................35 Future Developments........................... 38 34 | Education & Forest Overview The government of British Columbia works in partnership with B.C.’s post secondary education and training institutions to ensure that the current and future needs of the province’s economy and society will be met. Since 2001, B.C. has made unprecedented investments to support education for adults in British Columbia – almost $18 billion in post-secondary education. An additional $1.8 billion has been committed to research and innovation since 2001. “ B.C. has 25 publicly funded post-secondary institutions – 11 universities, 11 colleges and three institutes that offer over 1,900 programs, producing a wealth of skill and talent. ” FAST FACTS British Columbia’s universities award over 24,000 degrees annually – 32 per cent in sciences and engineering, and 10 per cent in business. In 2007-2008, over 5,400 technology and technical credentials were awarded by the B.C. Institute of Technology. More than 21,000 postsecondary credentials were granted by other institutions. Over the past eight years, 36,700 new post-secondary student spaces have been added to meet future skill demands. B.C. enjoys an extensive and globally recognized forest product research network that includes the University of British Columbia, the University of Northern British Columbia, the B.C. Institute of Technology, and centres such as FPInnovations and other industry groups. Post secondary education in the forestry sector includes the following. University of British Columbia Faculty of Forestry www.forestry.ubc.ca; www.cawp.ubc.ca The UBC Faculty of Forestry is Canada’s leading forestry school. The faculty prepares students to manage natural resources in an environmentally, socially and economically sustainable manner. Programs offered include undergraduate and graduate degree programs covering a range of conservation, resource management, and manufacturing subject areas. UBC Forestry also offers exchange programs for international students. One example is the 2+2 program where students from selected Chinese universities spend the first two years of their undergraduate degree program in China and then transfer to UBC Forestry to complete their third and fourth years. Successful graduates of this program receive a UBC degree. As part of the Faculty of Forestry, the Centre for Advanced Wood Processing (CAWP) is Canada’s national centre of excellence for education and research related to wood products processing and advanced wood products manufacturing. CAWP offers a wide range of training courses, continuing education programs, and industry services, conducts applied research, and assists industry to employ students to work on special projects by coordinating a cooperative education program with industry. Investing in our Forests Education & Forest | 35 University of Northern BC (UNBC) www.unbc.ca The University of Northern British Columbia is a national leader in education and research oriented to forestry, forest ecosystems, and forest-based communities. Undergraduate programs include Natural Resources Management, Natural Resources Planning, Environmental Engineering (in partnership with UBC), and Environmental Science. Graduate degree offerings include a range of master’s degrees and a PhD program in Natural Resources and Environmental Studies. Educational programs are complemented by research activity at the Aleza Lake Research Forest (B.C.’s oldest), the John Prince Research Forest (North America’s largest and the only research forest to be co-managed by a First Nations community), the I.K. Enhanced Forestry Laboratory, the Quesnel River Research Centre in the Cariboo region, and the Forests for the World area adjacent to the Prince George campus. UNBC is currently working to enhance its current network of forest innovation centres by developing a concept for a wood innovation and design centre in downtown Prince George. It is also strengthening its activity in bioenergy through programs that utilize residues from logging and sawmill operations. The University of Northern BC Prince George campus has wood pellet and biomass gasification systems that are giving the campus one of the lowest carbon footprints of any Canadian university. These bioenergy systems are cornerstones in Prince George’s efforts to develop a national centre of excellence in bioenergy and serve as the basis for applied research and education. The British Columbia Institute of Technology (BCIT) – Sustainable Resource Management and Renewable Resource Management www.bcit.ca/srm; www.bcit.ca/fwr BCIT offers a variety of resource management courses contributing to the environmental prosperity of the province. The Sustainable Resource Management program (SRM) offers three educational pathways. The Natural Resources Certificate is a one year credential providing safety certifications, field skills, and introductory training related to sustainable natural resource management for both urban and rural settings. A diploma in Forest Management prepares students for a range of occupations in the forest management sector and to become Registered Forest Technologists. Front Counter BC The Environmental and Community Planning diploma focuses on the field and technical skills relating to land management, planning, and mapping aspects of sustainable resource management for both urban and rural settings. 1-877-855-3222 (North America Toll Free) Outside North America, please call +1.604.586.4400 36 | Education & Forest Investing in our Forests The Fish, Wildlife and Recreation diploma at BCIT includes hands-on education in habitat ecology, environmental inventory techniques and environmental law. Additional post-secondary institutions throughout the province also provide training relevant to the forest sector. Institutions such as the College of New Caledonia with campuses throughout northern B.C., Selkirk College, Kwantlen Polytechnic University and Vancouver Island University offer a range of diplomas, technical and trade certificates, degrees, and apprenticeships. The atrium of the University of Northern British Columbia’s Geoffrey R. Weller Library in Prince George, British Columbia. College of New Caledonia www.cnc.bc.ca/Campuses.htm Kwantlen Polytechnic University www.kwantlen.bc.ca/home.html Selkirk College www.selkirk.ca/programs/rr/academicprograms/foresttechnology/ Vancouver Island University ww.mala.ca/forestry/index.asp For an overview of B.C.’s public universities, colleges, and institutes including brief snapshots of their offerings see: www.aved.gov.bc.ca/institutions/welcome.htm Investing in our Forests Education & Forest | 37 Future Developments The B.C. government has proposed a new Wood Innovation and Design Centre, to be located in Prince George B.C., which will bring together the extensive expertise and resources of existing forest sector organizations, research and academic institutions located throughout B.C. The Centre will: >> facilitate technology transfer and apply innovative wood products and building technologies; >> expand markets for further manufactured products; >> promote training in wood use and further manufacturing; and >> champion the implementation of British Columbia’s Wood-First policy, which will focus on increasing wood-based construction in commercial, institutional and mid-rise residential buildings. The Wood Enterprise Coalition, a partnership between Wood WORKS! BC, FPInnovations, and the BC Wood Specialties Group, will provide support for the planned Wood Innovation and Design Centre, advance Wood First demonstration and pilot projects and support the commercialization of new wood products. The partners will co-ordinate their efforts to support the value-added forest product sector through promotion, education, training, product development and innovation. Wood WORKS! BC (www.wood-works.ca ) is the B.C. component of the national industry-led initiative of the Canadian Wood Council. It supports innovation and provides leadership on the use of wood and wood products. FPInnovations (www.fpinnovations.ca ) is Canada’s Forest Sector innovation hub and R&D centre. It contributes leading-edge, forest-based scientific knowledge to the forest industry across Canada. It develops new products and market opportunities within a framework of environmental sustainability. BC Wood Specialties Group ( www.bcwood.com/new ) is a not-for-profit trade association representing British Columbia’s value-added wood products industry. The Group assists B.C.’s secondary wood product manufacturers by helping them access new markets. 38 | Education & Forest Investing in our Forests Investing in our Forests Education & Forest | 39 First Nations & the B.C. Forest Sector 40 | First Nations Overview British Columbia has a diverse population of First Nations people who have inhabited this land for thousands of years. There are approximately 203 different First Nations ( www.gov.bc.ca/arr/treaty/regional.html) throughout the province which share distinctive customs, cultures and languages. The First Nations of B.C. assert aboriginal title and rights that are protected in Canada’s Constitution. Aboriginal rights generally refer to the rights of Aboriginal peoples to pursue their traditional customs, practices and activities on the land. First Nations in B.C. offer exciting forest sector opportunities and the government of British Columbia encourages businesses/investors to build relationships with First Nations. The Province of British Columbia works with First Nations to restore, revitalize and strengthen First Nations communities, and to ensure that resource management decision making respects their interests, knowledge and values. By working together with the Province, local communities and First Nations will continue to share in the many benefits of responsible resource development. First Nations are active participants in the economy of British Columbia. coast tsimshian resources, owned by the Lax Kw’alaams, is a supplier of logs to domestic mills in both B.C.’s interior and south coast and an exporter to markets in Japan, Korea, and China. Coast Tsimshian Resources has had an office in Beijing since early 2009 and has established customer relationships in more than five different port areas in China. Coast Tsimshian Resources has been successful finding niche markets in northwestern B.C. and now is one of the biggest employers in the region. mcleod lake indian band worked with the B.C. government and Sinar Mas’s Netherlands-based unit, Paper Excellence BV, to secure a fibre supply of four million m3 of wood over five years that assisted in the re-opening of the Mackenzie pulp mill in August 2010. The reopened mill, employing 220 people, is a source of northern bleached softwood kraft pulp. Eighty per cent of the mill’s output is being sold to affiliated mills in Asia. The McLeod Lake Indian Band signed a Memorandum of Understanding with First Coal Corporation on coal mine development in northeastern B.C. The Band owns several companies that are actively engaged in logging as well as road and pipeline construction. McLeod Lake Indian Band has a membership of some 475 people and is part of the Tse’khene tribal group. stuwix resources’ joint venture is a partnership between eight bands: Coldwater Band, Cook’s Ferry Band, Lower Nicola Band, Nooaitch Band, Shackan Band, Siska Band, Upper Nicola Band, and Upper Similkameen Band in Merritt. Established in 2004, it is one of very few forestry companies in the province entirely owned and operated by First Nations. Stuwix holds a replaceable forest licence that grants over 450,000 m3 of each year. The timber harvested by Stuwix is sold locally, supporting the economy of the Nicola Valley. Stuwix is responsible for the overall management of the licence, including planning, developing, marketing, timber-harvesting, road-building and silviculture. Stuwix received the 2010 Joint Venture Business of the Year award presented by the British Columbia Aboriginal Business Awards. Investing in our Forests First Nations | 41 moricetown band, west of Smithers, is highly diversified. It owns the logging company Kyah Industries Limited, a lumber plant at Moricetown, Kyahwood Forest Products, and is a partner in the Houston Pellet Limited Partnership. Kyahwood Forest Products employs more than 65 people in lumber remanufacturing and finger jointing. Canadian Forest Products Ltd., Pinnacle Renewable Energy Group, and the Moricetown Band formed the Houston Pellet Limited Partnership which operates a pellet plant next to the Canfor sawmill in Houston, B.C. The pellet plant has an annual production capacity of 225,000 oven-dried tonnes. The Moricetown Band has a record of working co-operatively with the forest sector and the Province. The First Nations Energy and Mining Council (FNEMC) ( www.fnbc.info/fnemc ) and the First Nations Forestry Council (FNFC) ( www.fnforestrycouncil.ca) both share the mandate to advocate for bioenergy opportunities for First Nations. They are collaborating on several initiatives such as a joint effort with the BC Bioenergy Network (BCBN) (www.bcbioenergy.com) to assist remote First Nations communities with their renewable energy projects. FNEMC, FNFC and BCBN will collectively help these communities by arranging energy audits and community energy plans. They will then work with the community leaders to determine the best renewable energy options, choose the most appropriate suppliers and then begin the project’s implementation. 42 | First Nations huu-ay-aht first nations, near Bamfield, Vancouver Island, on April 1, 2011 will gain self-government under the Maa-nulth Treaty, the third modern treaty in B.C. Huu-ay-aht Development Corporation businesses are in forestry, aquaculture, fisheries, gravel, and tourism. The forestry business is supported by an annual harvest in excess of 100,000 m3 of timber, 87,000 m3 of which are from secure tenures with the Province and the rest from Huu-ay-aht’s own lands. Huu-ay-aht’s forest management business strategy is to develop and manage local and international markets from products it harvests. Huu-ay-aht is currently in the final stages of implementing an environmental management system that will be ISO 14001 certified. Huu-ay-aht is also interested in developing the optimal mix of revenue generated from log sales and forest products manufacturing. The diversity of species and quality available presents an opportunity for Huu-ay-aht to continue to develop a diversified customer base. B.C.’s commitment to working with First Nations is expressed through the New Relationship protocol which commits the Province and First Nations in B.C. to establishing a relationship based upon mutual respect, recognition and reconciliation. The emphasis is on negotiating decision-making and revenue sharing arrangements to allow First Nations to build their capacity in resource management. The Province, along with the federal government, made a commitment under the Transformative Change Accord to improving the standard of living of First Nations in B.C. Together, these two documents provide the tools to help First Nations to achieve their social and economic goals. Since 2003, the provincial government has signed 132 agreements that shared provincial forest revenue with 153 First Nations. These were the first revenue sharing agreements with Aboriginal communities in Canada. In 2008, the B.C. government committed to cross government resource revenue sharing with First Nations for other resource sectors. The provincial and federal governments actively pursue comprehensive settlements with First Nations under the modern treaty process. For more information please see: Ministry of Aboriginal Relations and Reconciliation www.gov.bc.ca/arr/. Achieving long-term reconciliation through modern treaties requires lengthy negotiation of a broad range of issues. As an incremental step towards completing treaties, “interim” measures agreements provide economic benefits and oppor tunity for growth in First Nation communities, build trust and create greater stability on the land base. Forestry interim measures agreements can offer a share of provincial revenue and the chance to manage a forest tenure in exchange for enhanced certainty of forest operations. Investing in our Forests Currently 172 First Nations have signed interim measures agreements with the government offering access to direct award forest tenures. As of September 2010, First Nations hold 6.4 million m3 per year, or about eight per cent of the provincial allowable annual cut, from direct award tenures. Including both competitive and direct award tenures, First Nations now control about 14 per cent of the provincial allowable annual cut. Existing and new tenure forms, such as the First Nations Woodlands Licence (expected in Spring 2011), recognize First Nations’ interests in the land and resources. These tenures provide First Nations the opportunity to enter into longer term tenure arrangements while also creating opportunities for investment through access to fibre. The long term tenure arrangements with increased security of fibre supply may be of significance to investors who are interested in First Nation-to-business agreements, joint ventures or other type of economic agreements.* First Nations in B.C. currently have access to $243 million in revenue sharing. The total allowable annual cut held by First Nations in competitive and direct awarded licences is about 14 per cent of the provincial allowable annual cut. Information Sharing and Interactions Working with and consulting with First Nations is a necessity of doing business in British Columbia. The Province has a legal obligation to consult with First Nations. British Columbia will guide and work with a project proponent throughout the approval process to help develop the tools to establish the necessary relationship. We encourage businesses to share information with First Nations and consider First Nation interests in relation to forest and/or range resource development activities to build successful relationships and smooth operating interactions. Contacts You can contact the Ministry of Forests, Lands and Natural Resource Operations, First Nations and Land Use Branch via email: [email protected] Front Counter BC 1-877-855-3222 (North America Toll Free) Outside North America, please call +1.604.586.4400 *For general information on tenure and AAC see page 45. Investing in our Forests First Nations | 43 Tenure TABLE OF CONTENTS Overview.................................................... 45 Tenure.........................................................46 Competitive Bid Process......................48 Selected Tenure Types..........................50 Costs Related to Tenure........................ 51 Quick Reference....................................... 51 Mountain Pine Beetle........................... 52 44 | Tenure Overview British Columbia is home to one of the largest public forests on earth. With a total landbase of 95 million hectares (235 million acres), nearly two thirds – some 60 million hectares or approximately 148 million acres – is forested. Five per cent of the landbase is privately owned and about 14 per cent of B.C.’s forests are protected areas. The forests in B.C. are therefore predominantly owned by the Province. The provincial government establishes the objectives for forest management through laws that enable the environmental, economic and social use of the forest, while ensuring its long-term sustainability. “ Under Canada’s constitution the right to manage and administer the Crown forest resources was delegated to the provinces. ” The B.C. government in part helps determine where, how and how much harvesting takes place, but business needs for the most part establish when harvesting occurs. B.C.’s forest management laws ensure that all forest values are considered and that there are opportunities for First Nations and public involvement. The B.C. government authorizes the use of public lands for activities, such as, logging and grazing. The government enacts legislation that requires all users of the forest to conserve forest values, including timber, biodiversity, water and soil quality and wildlife habitat. “ Provincial law requires that every hectare of Crown land logged must be reforested within a specific time period to required standards. Ongoing reforestation helps maintain British Columbia’s forest resources so that even after more than 100 years of forestry, the province remains home to one of the largest public forests on earth. ” Investing in our Forests Tenure | 45 Tenure Crown timber harvesting rights are regulated through the setting of the allowable annual cut (AAC) and the issuance of harvesting rights (tenures). Over 96 per cent of the available AAC is allocated under forest licences, tree farm licences and timber sales licences, which are all forms of tenure. The AAC is the maximum amount of timber that may be harvested per year from a specified area of land. The government assigns the AAC to specific tenure types. Tenure is how the government transfers specific rights to use Crown (public) forest and resources to others and identifies the obligations that go with those rights. Private forest companies, communities and individuals gain the right to harvest timber in public forests through tenure agreements with the B.C. government. On B.C.’s public forest land, the AAC is currently estimated at 70 million m3 per year when mountain pine beetle harvest impacts are not considered. AACs have increased to a current total of about 80 million m3 per year, over the last 10 years, since the start of the mountain pine beetle outbreak. As a result of the mountain pine beetle infestation, the provincial timber supply is currently forecasted to be 50 to 60 million m3 per year starting in 2025 for several decades. ALLOWABLE ANNUAL CUT IN BRITISH COLUMBIA The overall allowable annual cut in the province is 83 million m3. This upper limit of harvestable annual volume is divided between three regions in B.C. Coast Region 17.4 million m3 Northern Interior Region 32.4 million m3 Southern Interior Region 30.2 million m3 A timber tenure can take the form of an agreement, licence or permit. Each is a legally binding contract. Each provides the contract holder the right to harvest crown timber over a specific period of time, in a defined areas and identifies obligations associated with the tenure. Examples of these obligations include payment of stumpage (see Costs Related to Tenure page 51 for more on stumpage), operational planning requirements such as professional assessments, surveys and designs, road construction maintenance and deactivation, fire hazard mitigation and reforestation. Specific costs include stumpage (the price tenure holders pay for harvesting public timber) annual rents, and there may also be other fees payable under specific licences or permits. See Costs Related to Tenure page 51 for more information. 46 | Tenure Investing in our Forests Different forms of agreement (tenure) exist and can be categorized as either major or minor. Major and minor tenures are awarded competitively, although First Nation governments are able, in some cases, to acquire tenure without competition. >> Major Tenures: The Forest Act defines some licences as “major” forms. These include forest, tree farm, and timber licences, as well as some timber sale licences and forestry licences to cut. Most of the AAC assigned to major tenures has already been awarded. However, access to the wood fibre held under these tenures is possible. While most of the wood fibre is processed through the tenure holder’s own facilities, unused wood fibre can be sold or traded through fibre supply agreements. It is also possible to purchase outright the tenure itself. Typically, the major tenure forms convey more rights, and more obligations for planning, reforestation and road building. >> Minor tenures: Minor tenures are short term in nature. The AAC assigned to minor tenures is continuously becoming available as existing tenures expire, are surrendered or cancelled. Minor tenures are typically non-replaceable and have fewer obligations that major tenures. Tenure holders’ obligations may be limited to road management, harvesting, and fire hazard mitigation. Tenure types are held for varying terms. Long-term licences include tree farm licences, replaceable forest licences, woodlot licences, and community forest agreements. These are “evergreen” licences where under most circumstances the right to harvest timber is replaced periodically and associated responsibilities continue until they have been fulfilled. Medium-term licences (non-replaceable forest licences) generally provide rights to harvest timber that last from 5 to 20 years. Short-term licences (timber sale licences, forestry licences to cut) generally have terms from one to four years. For descriptions of existing tenure types and information on new forms of tenure being created in B.C. to provide access to harvesting residues that are not utilized by tenure holders see Selected Tenure Types Chart, page 50. Investing in our Forests KEY LEGISLATION FOREST ACT www.bclaws.ca/EPLibraries/ bclaws_new/document/ID/ freeside/00_02069_01 This act governs timber tenures in B.C. It sets out the forms of agreement under which Crown timber can be issued to other interests. It describes each form of tenure through aspects like duration, the rights and obligations of the holder, and how the tenure will be administered. FOREST AND RANGE PRACTICES ACT www.bclaws.ca/EPLibraries/ bclaws_new/document/ID/ freeside/00_02069_01 This act governs the forestry operations of forest and range licensees in B.C. It sets the requirements for planning, road building, logging, reforestation, and grazing. Tenure | 47 Competitive Bid Process Non-Replaceable Forest Licences and Timber Sale Licences (issued by BC Timber Sales) are auctioned on a competitive basis. Eligibility may be restricted, and applicants must also pay to the government stumpage and other fees on all merchantable timber, plus a bonus offer or bonus bid. The tenure is awarded to the highest eligible bidder. In all cases though, the minimum requirement to hold a tenure in B.C. includes being an individual, incorporated company or joint venture eligible to do business in British Columbia, a society registered in B.C., or a First Nation. Note: Long term replaceable licences are not auctioned. Non-Replaceable Forest Licences and Woodlot Licences are also awarded competitively. These tenure opportunities are advertised by government, which invites applications from interested parties. The tenure is awarded to the applicant with the highest qualifying bid. Direct award In very limited circumstances, as defined in the Forest Act, a timber tenure may be awarded without advertising or inviting applications. Direct awards are issued to First Nations for interim measures purposes prior to formal treaty settlement. They are also issued in specific instances for small areas and volumes, for example, to facilitate oil and gas exploration, or for small scale salvage. Examples of tenure forms that may be directly awarded include: Forest Licence, Community Forest Agreement, Woodlot Licence and First Nations Woodland Licence. BC Timber Sales BC Timber Sales (BCTS) is an arm of the Ministry of Forests, Lands and Natural Resource Operations that competitively auctions approximately 20 per cent or 16 million m3 of timber available in B.C. in a given year. This is done through Timber Sale Licences (TSL). Given the relatively small volumes (average volume is 25,000 m3) and short-term duration of the licence (average term is 18 months), TSL auctions are considered an accurate gauge of the price for most standing timber in B.C. 48 | Tenure Investing in our Forests BCTS is a consistent supplier of timber and offers a wide range of timber types to meet market demand. Because BCTS does all the development road building and silviculture, each TSL is ready for harvest. The turnkey nature of TSLs makes them very effective for new investors who want access to harvest ready timber without dealing directly with development and silviculture costs. To participate in a TSL auction an individual or company must first register with a BCTS Timber Sales Office. Once registered, an individual or company can compete for the approximately 400 TSL auctions that are advertised on the BCTS web site throughout the year. The auction process relies on a sealed tender format and bids must be accompanied by a bid security in the amount set out in a TSL auction particulars package. If successful, additional security will be required before the individual or company enters into the agreement. ACCESSING WOOD FIBRE Bid, Buy or B2B You can access fibre three ways: > Bid on new tenure > Buy existing tenure from the current holder > Business to business dealings with an existing tenure holder BC Timber Sales For more information see www.for.gov.bc.ca/bcts/ or via phone through Enquiry BC: Victoria250.387.6121 Vancouver604.660.2421 Other Areas 1.800.663.7867 Investing in our Forests Tenure | 49 Selected Tenure Types The following chart lists the major forms of tenure available under the Forest Act. TENURE RESOURCE RIGHTS DURATION MAJOR RESPONSIBILITIES Tree Farm Licence Issues virtually exclusive right to harvest timber and manage forests in a specified area. May include private land. Term is 25 years, replaceable every five to ten years. Strategic and operational planning, inventories, reforestation, stumpage payments, obligation to use logging contractors for a portion of the volume harvested each year (exceptions may apply). Forest Licence Issues the right to harvest an Allowable Annual Cut in specified Timber Supply Area or Tree Farm Licence area. Up to 20 years. May be replaceable every five to ten years, or non-replaceable. Operational planning, road building, reforestation, stumpage payments. May be required to use logging contractors for all or part of the volume harvested. Timber Sales Licence Issued only by BC Timber Sales via competitive auction. Provides the right to harvest in a specified area. Up to four years, non-replaceable. Stumpage payments. May be obligated to operate in accordance with certification bodies. Woodlot Licence Issues exclusive right to harvest an Allowable Annual Cut and manage forests in a specified area. Area is less than 1200 hectares in size. Up to 20 years. Most are replaceable every ten years. Strategic and operational planning, inventories, reforestation, stumpage payments. First Nations Woodland Licence Under development, expected for Spring 2011 Issues exclusive right to a First Nation to harvest an Allowable Annual Cut in a specific area. Term is 25 to 99 years Replaceable every five to ten years. Strategic and operational planning, inventories, reforestation, stumpage payments. Community Forest Agreement Issues exclusive right to a community groups such as a First Nation, municipality or regional district to harvest an Allowable Annual Cut in a specific area. Following an evaluation, may be extended or converted to long-term form of 25 to 99-years, replaceable every ten years. Strategic and operational planning, inventories, reforestation, stumpage payments. There may be: Terms up to five years with provisions for an extension to a maximum 10 years (tied to a bioenergy supply contract). There may be: Stumpage payments, provisions for a security deposit, requirement for hazard abatement. May include right to harvest, manage, and charge fees for botanical forest products and other products. Directly awarded. May include right to harvest, manage, and charge fees for botanical forest products and other products. May be competitively or directly awarded Fibre Supply Licence to Cut (Fibre Supply LTC) Under development, expected for Spring 2011. There may be: A secondary tenure or fibre recovery tenure to utilize logging debris that is left behind on landings and roadsides, provided that the primary harvester has notified the provincial government they have no further interest in the material. Authority limited to roadside logging debris. Provides the right to harvest in a specified area. May be competitively or directly awarded. Direct award to a holder of a bioenergy supply contract or to a First Nation to further an agreement. Note: A Fibre Supply LTC does not provide Crown assurance of fibre being made available within the licence area since the primary licensee may change specifications for timber utilization or begin to utilize harvesting waste for their own purposes. TENURE TYPE – NO LONGER BEING ISSUED Timber Licence Issues exclusive right to harvest merchantable timber in a specified area No longer being issued. Existing licences have variable terms and may be extended. Operational planning, road building, reforestation, stumpage payments. Pulpwood Agreement Grants a conditional right to harvest ‘pulp quality timber,’ where other sources are insufficient or uneconomic. No longer being issued. Up to 25 years. Operational planning, obligation to maintain a pulp timber processing facility, obligation to purchase wood residue and pulp logs produced in the pulpwood area, reforestation, stumpage payments. 50 | Tenure Costs Related to Tenure The B.C. government receives tenure-related revenues from stumpage and annual rents. Stumpage is, for most timber, the price paid ($/m3) for harvesting trees from provincial Crown land. The 10 year average stumpage rate from 2000 to 2009 is $14.99 per cubic metre*. The chart below shows stumpage has fallen from approximately $22/m3 in 2000 to $ 4.88 m3 in 2009. The decline was due to a combination of negative mountain pine beetle impacts on the quality and value of the timber and to the continuing decline in markets for lumber since the recession of 2007. Annual rent is paid by holders of most forms of tenure with the rates set out by government regulation. There may also be other fees payable under specific licenses or permits. *rate averages are calculated as straight averages and includes all Crown land tenure except salvage and Christmas trees. More information on annual rent costs: www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/12_122_2003 $ 25 PROVINCIAL AVERAGE STUMPAGE RATE 2000-2009 $ 20 $ 15 $ 10 Rate: $ per cubic metre $5 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Quick Reference xxx Allowable Annual Cut: The Allowable Annual Cut (AAC) is the maximum amount of timber that may be sustainably harvested per year from a specified area of land. The Province’s Chief Forester reviews the timber supply on a regular basis, normally every 10 years. Following that review, the AAC may increase, decrease or remain unchanged. Basic silviculture: Includes seed collecting, site preparation, plantings of seedlings and natural regeneration, brushing, spacing and stand tending that are for the purpose of establishing a free-growing crop of trees. FAST FACTS Replaceable tenures generally have terms ranging from 15 to 25 years, providing licensees with the long term security to invest in business planning, forest management, and manufacturing. Every five to 10 years, the licence may be updated or replaced to reflect current government policy. Non-replaceable tenures are granted for a fixed term, often in a fixed amount, to achieve specific goals, for example, where the Ministry of Forests, Lands and Natural Resource Operations wants to manage a specific timber problem, such as harvesting pine beetle wood, to open up a geographic area, or to provide other harvesting opportunities where timber has become available for allocation. Timber Supply Area (TSA) is a geographically based administrative area under the Forest Act. Timber supply areas have an AAC set by the Chief Forester, and are used to provide a sustainable flow of timber to both replaceable and non-replaceable forms of volume-based tenures. For information on tenure holders such as their types of tenure, volumes apportioned and names of company or corporate groups holding tenure go online to: www.for.gov.bc.ca/hth/apportionment/apportionment.htm or email [email protected] Stumpage: The fee that individuals and firms are required to pay to the government when they harvest Crown timber in British Columbia. Tenure: How the government transfers specific rights to use Crown (public) forest and range land and resources to others and identifies the obligations that go with those rights. Investing in our Forests Tenure | 51 Mountain Pine Beetle The mountain pine beetle has always been a natural element of British Columbia’s interior pine forests. Normally, cold temperatures, forest fires and natural predators keep populations in check. However, an abundance of mature lodgepole pine, combined with recent mild winters and uncharacteristically hot, dry summers, have led to an unprecedented epidemic. It is estimated that the cumulative area of provincial forest affected to some degree by the current outbreak is now more than 16 million hectares in British Columbia – one-quarter of the province’s forest land. British Columbia continues to look for ways to capture the economic value of trees affected by this epidemic while respecting other values. While the epidemic has peaked in many regions and is slowing down, it may increase again slightly as it moves into pine forests in the northeast and southern interior. After 2012, it is expected to subside rapidly – by 2020, the current outbreak will essentially have ended. As the epidemic progresses, British Columbia forest managers are learning more about it so they will be better prepared to address future localized outbreaks. Current information indicates wood from beetle-affected trees will retain its commercial value for eight to 12 years after the tree has died. This so-called ‘shelf life’ is dependent on a number of factors, including economic and stand site conditions. The trees remain commercially viable longer under drier conditions. In areas where it is wetter, the trees tend to rot at the base and fall faster, especially if they are larger. Front Counter BC For further information go to: www.naturallywood.com/Resources or www.for.gov.bc.ca/hfp/mountain_pine_beetle/ 1-877-855-3222 (North America Toll Free) Outside North America, please call +1.604.586.4400 52 | Tenure Investing in our Forests Tenure | 53 Web Links For more information relating to the forestry sector, please see the following links: Ministry of Forests, Lands and Natural Resource Operations Ministry of Forests, Lands and Natural Resource Operations www.for.gov.bc.ca/mof/ BC Timber Sales www.for.gov.bc.ca/bcts Bioenergy Opportunities Using Wood Resources www.for.gov.bc.ca/hth/timten/bioenergy/FAQ.htm Fibre Connections BC www.for.gov.bc.ca/mof/fcbc Forest Resource Inventories www.for.gov.bc.ca/hts/ Forests for Tomorrow www.forestsfortomorrow.com/fft/home/forests-tomorrow Generating More Value from Our Forests: A Vision and Action Plan for Further Manufacturing www.for.gov.bc.ca/het/valueadded/ Mountain Pine Beetle www.for.gov.bc.ca/hfp/mountain_pine_beetle/#info State of British Columbia’s Forests report www.for.gov.bc.ca/hfp/sof/ Wood First Initiative www.for.gov.bc.ca/mof/woodfirst/ Bioenergy BC Bioenergy Network www.bcbioenergy.com BC Bioenergy Strategy www.energyplan.gov.bc.ca/bioenergy/ Forest Industry Associations APA – The Engineered Wood Association www.apawood.org BC Log and Timber Building Industry Association www.bclogandtimberbuilders.com BC Shake & Shingle Association www.bcshakeshingle.com 54 | Web Links & Contacts Investing in our Forests BC Wood Specialties Group www.bcwood.com Cedar Shake and Shingle Bureau www.cedarbureau.org CertiWood /Canadian Plywood Association www.certiwood.com Coast Forest Products Association www.coastforest.org Council of Forest Industries www.cofi.org Forest Products Association of Canada www.fpac.ca Forests for Tomorrow www.forestsfortomorrow.com/fft/home/forests-tomorrow Independent Lumber Remanufacturing Association www.ilrabc.org Interior Lumber Manufacturers Association www.ilma.com International Log Builders Association www.logassociation.org Truck Loggers Association www.tla.ca Vancouver Island Value Added Association of Wood Processors www.islandpages.com/viawp/ Western Red Cedar Export Association www.wrcea.org Western Red Cedar Lumber Association www.wrcla.org First Nations (B.C. Ministries) Aboriginal Affairs Branch, Frequently Asked Questions www.for.gov.bc.ca/haa/FRA_faq.htm#other1 First Nations Energy and Mining Council www.fnbc.info/fnemc First Nations Forestry Council www.fnforestrycouncil.ca Forest Tenures Branch, First Nation Woodland Licence www.for.gov.bc.ca/hth/timber-tenures/index.htm Ministry of Aboriginal Relations and Reconciliation www.gov.bc.ca/arr/ Ministry of Forests, Lands and Natural Resource Operations www.for.gov.bc.ca/haa/ Ministry of Natural Resource Operations Integrated Land Management Bureau (interagency approach to First Nation consultation) www.ilmb.gov.bc.ca/category/subject-area/first-nations Investing in our Forests Web Links & Contacts | 55 Infrastructure BC Hydro www.bchydro.com Burlington Northern Santa Fe www.bnsf.com Canada’s Pacific Gateway www.th.gov.bc.ca/pacificgateway CN www.cn.ca CPR www8.cpr.ca/cms/English Port Metro Vancouver www.portmetrovancouver.com Prince George International Airport www.pgairport.ca Prince Rupert Port Authority www.rupertport.com Vancouver International Airport cargo www.yvr.ca/en/business-at-yvr/cargo.aspx Investor Information Canada: Trade Negotiations and Agreements www.international.gc.ca/commerce/index.aspx Invest BC www.investbc.com Forestry Innovation Investment Ltd. www.bcfii.ca New West Partnership www.tti.gov.bc.ca/DomIntlTrade/DomesticTrade/NewWestPartnership.htm Ministry of Environment www.gov.bc.ca/env Climate Action Secretariat www.env.gov.bc.ca/cas Ministry of Natural Resource Operations www.gov.bc.ca/nro Naturally Wood www.naturallywood.com/default.aspx Pacific Carbon Trust www.pacificcarbontrust.com Western Climate Initiative www.westernclimateinitiative.org 56 | Web Links & Contacts Investing in our Forests Contacts Ministry of Forests, Mines and Lands Peter Jacobsen Director, Compensation & Investor Relations Phone: +1.250.387.8643 Fax: +1.250.356.6209 Email: [email protected] Ministry of Tourism, Trade and Investment Michael Track Executive Director, Investor Services Phone +1.604.775.2202 Fax: +1.604.775.2197 Email: [email protected] Forestry Innovation Investment Ltd. Phone: +1.604.685.7507 Fax: +1.604.685.5373 www.bcfii.ca Email: [email protected] www.naturallywood.com Kevin Regan Director, Corporate Relations Front Counter BC 1-877-855-3222 (North America Toll Free) Outside North America, please call +1.604.586.4400 Investing in our Forests Web Links & Contacts | 57