TSX: WEF
DUNCAN, BC, Oct. 16 /CNW/ - Western Forest Products Inc. (TSX: WEF)
reports temporary reductions to its annual timber cutting rights (Allowable
Annual Cut ("AAC")).
The British Columbia Chief Forester has announced temporary reductions
affecting several coastal logging operators' timber harvesting rights totaling
almost one million cubic meters to the AACs of specific Tree Farm Licences and
Timber Supply Areas on the British Columbia coast. A number of Western Forest
Products tenures are affected by these reductions. While apportionment of the
temporary AAC reductions to specific licensees is outstanding, it is
anticipated that Western's tenures on the Haida Gwaii / Queen Charlotte
Islands and the Central Coast will see a total AAC reduction of approximately
450,000 cubic meters. This volume is equivalent to approximately 6% of
Western's annual timber harvest rights.
The reductions follow earlier announced provincial orders-in-council that
temporarily put various coastal areas off limits to forest development through
Part 13 of the Forest Act. The AAC reductions were made to ensure that harvest
rates remain at a sustainable level until land use planning is completed in
the areas affected by the Part 13 orders.
The Part 13 orders and the temporary AAC reductions were anticipated and
have been factored into Western's short-term harvesting and mill production
plans. If the Part 13 orders extend for more than four years from the date of
issue or the Province's land use planning process results in these reductions
becoming permanent, then Western will have the ability to seek compensation
from the Province for the reduced cutting rights thereafter.
Western Forest Products
Western is an integrated Canadian forest products company and the largest
coastal British Columbia woodland operator and lumber producer with an Annual
Allowable Cut of approximately 7.7 million cubic meters of timber (before
temporary AAC reductions) and lumber capacity in excess of 1.5 billion board
feet from nine sawmills and five remanufacturing plants. Principal activities
conducted by the Company and its subsidiaries include timber harvesting,
reforestation, sawmilling logs into lumber and wood chips, and value-added
remanufacturing.
Substantially all of Western's logging is conducted on government owned
timberlands in British Columbia. All of Western's operations, employees and
corporate facilities are located in the coastal region of British Columbia
while its products are sold in over 20 countries worldwide.
Forward Looking Statements and Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable securities law.
Those statements and information include statements or information regarding
the intent, belief or current expectations of Western. Such statements or
information may be indicated by words such as "approximately", "achieving",
"estimated", "expect", "anticipate", "plan", "intend", "believe", "will",
"should", "may" and similar words and phrases. Readers are cautioned that any
such forward-looking statements or information are not guarantees and may
involve known and unknown risks and uncertainties, and that the actual results
may differ from those expressed or implied in the forward-looking statements
or information as a result of various factors including, changes in government
regulation, and misjudgments in the course of preparing forward-looking
statements or information. The information contained under the "Risk Factors"
section of Western's Annual Information Form and under the "Risks and
Uncertainties" section of Western's Management's Discussion and Analysis
identifies important factors that could cause such differences. All written
and oral forward-looking statements or information attributable to Western or
persons acting on behalf of Western are expressly qualified in their entirety
by the foregoing cautionary statements. Western does not expect to update
forward-looking statements or information as conditions change.
