The Trust’s forest resources are located throughout Alaska, with the most valuable reserves in Southeast Alaska. The Trust Land Office continues to seek opportunities to create sales when the market, available timber and interests are aligned. The Trust Land Office is collaboratively working with landowners throughout the state to manage forest resources in a healthy socioeconomic and environmentally responsible manner while meeting Trust objectives. The Trust Land Office also issues negotiated timber sales statewide for fuel reduction, biofuels, commercial firewood and other specialty wood harvest projects.

The TLO manages Trust timber lands much like a private owner would. These lands are managed to provide a social, economic and environmental return. Land and forest management decisions on Trust lands are made to maximize revenue over time.

Trust timber sales account for a significant portion of the Trust Land Office’s annual income. Revenue derived from timber receipts are split 85% to the AMHT Principle, nested in the Permanent Fund, and 15% to Income, used for benefit programs and operating costs. The TLO has sold over 200,000 million board feet of timber to a variety of forest product companies. While much of this timber has been sold to the export market, the harvest activity has resulted in significant economic benefits to Alaska communities and in some cases has made timber available for in-state use.

Naukati Exchange Timber Sale

The Trust Land Office negotiated a 100-million board foot timber sale with Viking Lumber near Naukati in Southeast Alaska. This sale incorporated timberlands obtained through conveyance of lands from the Alaska Mental Trust Land Exchange Act of 2017. Phase 1 of the land exchange was completed in January 2019 with harvest operations starting in late February. This timber sale has resulted in the Viking Sawmill in Klawock, the largest operating sawmill in Alaska, to continue operating. The Viking Sawmill is responsible for approximately 100 jobs and is a cornerstone of the Prince of Wales (POW) economy. Viking will harvest, process and market most of the timber the AMHT obtains on POW. This sale is expected to generate about $15 million in revenues to Trust Beneficiaries.

Icy Bay Timber Sale

Sealaska Timber Corporation (STC) successfully mobilized for the timber sale at Icy Bay in May of 2018. Icy Bay is one of the most isolated areas in Alaska that timber operations occur. This makes operational logistics extremely challenging. STC was able to overcome these challenges and had a successful season in 2018 and 2019. Operations will be completed in 2020.*

Kasaan Timber Sale

The TLO has a small timber sale composed of primarily of young growth timber to Alcan Timber located near Kasaan on Prince of Wales Island. This sale has been on-going for several years and is dependent on healthy markets for young growth. The China market has provided for

a base for profitable operations in small diameter, low quality and young growth saw logs from SE Alaska.*

*The last couple years have been challenging with China tariffs, a European spruce bark beetle outbreak, and COVID-19 all having negative impacts on this market. The TLO and its contractors are waiting for improved market conditions before continuing this sale.