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First Nations forge trade links with Chinese |
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Written by GORDON HOEKSTRA
Citizen staff
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Tuesday, 15 July 2008 |
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NORTHERN INTERIORFIRST NATIONS
The first-ever B.C. First Nations forestry trade mission to China has been called a success by its participants, resulting, the participants say, in indications that Chinese companies are interested in pursuing forestry and also mining opportunities.
"We have the wood, and a workforce in need of jobs -- unemployment is as high as 85 per cent in some of our communities," said Ed John, a grand chief of the Tl'azt'en Nation and an executive of the B.C. First Nations Summit.
"China has the need for our products, and the resources to work with us to establish production and deliver capabilities," said John, who grew up in the Northern Interior and now lives in Vancouver.
John acknowledged there is more work to be done -- the First Nations' delegates were not representing individual companies -- but he is optimistic this first foray could lead to a concrete relationship between First Nations in B.C. and Chinese companies.
John noted that B.C. First Nations hold 155 forestry licences totalling up to an annual timber harvest of more than 13.5 million cubic metres, about 300,000 logging truck loads of logs.
Many of those licences are not being utilized as First Nations struggle with a litany of challenges: high Crown timber fees, poor local log markets, a lack of access to capital and small harvesting volumes.
Recently, one Northern Interior First Nation took its case to the provincial government, saying it would lose money if it logged its licence.
John noted that in B.C., First Nations can have difficulty dealing with major forest companies, who may not want their timber and which hold most of the milling capacity in the regions.
In China, the First Nations delegates said they signed a letter of intent to pursue contracts for B.C. First Nations forest products with the largest forestry remanufacturing company in the province of Shandong. The company, Qingdao Liangmu, operates 14 factories in the province of 100 million. It had been relying heavily on logs and processed wood imported from Russia, but is anxious to find new supply source because of recent changes to the Russian log export taxes. There is interest in B.C. wood such as western hemlock, spruce, pine, subalpine fir and Douglas fir.
The delegates also drummed up a number of other leads, including with the Zhongchuan International Mining Holding Co. Ltd. The company has accepted an invitation to a B.C. First Nations mining summit this October in Prince George.
"It became clear in all our meetings that it is to our mutual benefit to pursue opportunities together and both sides are, I think, anxious to make this work," said John.
Other delegates on the trade mission were Dave Porter, also with the First Nations Summit, David Walken, with the B.C. First Nations Forestry Council, Lennard Joe, a First Nations forester, and Frank Brown, a Heiltsuk First Nation member.
Leonard Thomas, a Northern Interior First Nations forestry leader who did not travel to China, says he does see opportunities there but viewed them cautiously.
Thomas is a member of the Nak'azdli First Nation which is involved in a joint lumber operation with Apollo Forest Products in Fort St. James.
While the Chinese market exists, he said he has heard from businesses that have had firsthand dealings there it is not always easy. And while it is true that First Nations have access to timber and are looking for way to develop that timber into products, Thomas said he believed it would take time to build up experience in the Chinese market.
Still, Thomas said the trip was a first, as normally First Nations explore market opportunities with a large partner. "This is the first time we were on our own," said Thomas, also a member of the B.C. First Nations Forestry Council.
Thomas also sees a potential for First Nations to pool their timber and market opportunities to China.
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Last Updated ( Sunday, 07 September 2008 )
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