Grassy Narrows

Weyerhaeuser operates a state-of-the-art TimberStrand® laminated strand lumber mill in Kenora, Ontario. The mill draws most of its supply of hardwood fiber from two surrounding forest management areas: the Kenora forest, licensed by the province to a shareholder cooperative that includes Weyerhaeuser, several aboriginal communities and businesses, small mills, forestry contractors and quota holders, and the Whiskey Jack forest, previously licensed by the province to AbitibiBowater. Much of the Whiskey Jack forest is subject to a traditional use claim by the Grassy Narrows First Nation.

Grassy Narrows First Nation is engaged with the province of Ontario over historic and present-day issues, one of which is the management of the Whiskey Jack forest. Company leaders, including the president of Weyerhaeuser Company, have urged Ontario to work with Grassy Narrows First Nation at the highest level. In September 2007, the Premier of Ontario, in cooperation with the Chief of Grassy Narrows First Nation, appointed former Supreme Court Justice Frank Iacobucci to identify the issues of concern for the Grassy Narrows community and advise the province on addressing those concerns. Weyerhaeuser extended the fullest possible cooperation to Justice Iacobucci in his work.

Mr. Iacobucci identified opportunities for Ontario and the Grassy Narrows First Nation community to work together to build a positive, long-term relationship. He recommended that the Province and Grassy Narrows First Nation enter into a shorter term working agreement to improve their understanding and cooperation on the sustainable management of forest resources in the Whiskey Jack Forest while respecting the rights and interests of others. In May 2008, Grassy Narrows First Nation and the Ministry of Natural Resources committed to a new, positive relationship. Subsequently, in July 2008, provincial officials and Grassy Narrows First Nation leaders entered into a Framework Agreement, setting out goals, principles and objectives and a process to resolve issues. The Framework Agreement includes a Grassy Narrows pilot forest project. In April 2011, Grassy Narrows First Nation and the Ministry of Natural Resource entered into a new memorandum of agreement that includes recognition of the rights and interests of others in the Whiskey Jack Forest and a commitment to forest activities on the Whiskey Jack Forest.

In August 2011, Justice Sanderson of the Ontario Superior Court issued a decision limiting Ontario’s power to authorize forest licences. In December 2011, the Court of Appeal for Ontario stayed the decision of Justice Sanderson, and restricted Ontario from authorizing harvesting of trees within an area described as the Whiskey Jack north of the English River without the consent of Grassy Narrows First Nation.

Weyerhaeuser supports ongoing processes designed to bring about resolution of outstanding issues on the Whiskey Jack forest. Weyerhaeuser has successfully worked with other First Nations in the region to establish the cooperative forest license on the Kenora Forest, including First Nations as shareholders.

While Weyerhaeuser uses alternative wood sources, Weyerhaeuser's Kenora TimberStrand® mill depends on a long-term, sustainable supply of hardwood from the Whiskey Jack forest for about 40 percent of its requirements.

The Kenora mill is important to the community, as it directly and indirectly employs over one thousand people in the region, with an overall economic impact exceeding $60 million each year. The mill also reflects Weyerhaeuser's commitment to building mutually beneficial relationships with aboriginal communities. First Nations served on a special steering committee during construction of the mill, helping Weyerhaeuser recruit and maintain a long-term workforce that is 20-25 percent aboriginal.

Weyerhaeuser's respect for the rights of aboriginal peoples is reflected in our policy and framework for building relationships with Canada's aboriginal peoples. We are committed to supporting the framework and processes agreed to by the province and Grassy Narrows First Nation to find lasting and inclusive solutions to the issues around the Whiskey Jack Forest, based on the principles stated by Justice Iacobucci of mutual respect, understanding, participation and accountability.

Weyerhaeuser's approach to issues around the Whiskey Jack forest is based on the following principles:

• Operations on the Whiskey Jack forest should include the meaningful participation of and consultation with the Kenora community and indigenous peoples affected by those operations, including Grassy Narrows First Nation.
• Operations on the Whiskey Jack forest should respect the rights of Grassy Narrows First Nation and other aboriginal groups. These rights may include land tenure, treaty rights, and other rights.
• Operations on the Whiskey Jack forest should continue to build the capacity of aboriginal peoples, including Grassy Narrows members, to work in the forest products industry and enhance the value of the forest’s timber and non-timber resources through fair, equitable and mutually beneficial relationships.
• Operations on the Whiskey Jack forest should be sensitive to and acknowledge the culture, heritage and traditions of aboriginal peoples, including Grassy Narrows First Nation, and promote inclusion of traditional knowledge and practices.
• Any conflicts with aboriginal peoples over operations on the Whiskey Jack forest should be resolved through just and fair procedures.