Tolko Industries Ltd and Weyerhaeuser are set to swap some timber-cutting areas in British Columbia.

Recent changes in forestry legislation mean the companies can now carry out the switch without incurring a financial penalty.

Tolko will trade its operating licence in the Kamloops area for cutting rights in the Okanagan and Merritt, which are closer to its existing sawmills. Weyerhaeuser has closed both its mills in the region and says it makes economic sense to take on Tolko’s harvesting area in Kamloops.