Two First Nation groups are to be given generous timber cutting rights and more than C$500,000 cash a year by Victoria’s provincial government.

The agreement, part of a plan to diversify wood supply and head off legal challenges, will see the Kitselas and Kitsumkalum groups receive a five-year forest licence to cut nearly 60,000m3 annually.

A further deal will give them rights to an extra 500,000m3 over five years, bringing the potential annual cut to a sizeable 160,000m3.

The groups, which live around Terrace in the Skeena River Valley, also stand to get C$30,000 from the Economic Measures Fund to develop a logging business plan. They aim to create a regional log market selling timber to a variety of users.

Victoria’s decision follows a British Columbia Supreme Court ruling last year which said it had failed to properly consult and accommodate First Nation groups regarding the sale of Skeena Cellulose.