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Paper Excellence settles with N.S., cancels pulp mill reopening plans

Paper Excellence Canada has reached a settlement with the Province of Nova Scotia, halting plans to reopen Northern Pulp Nova Scotia in Pictou. Instead, a review process will explore the feasibility of a new, modern mill in Liverpool, N.S., funded by Paper Excellence. This study will determine if a viable business case exists for the proposed Northern Bleached Softwood Kraft (NBSK) pulp mill.

If deemed viable, Northern Pulp will seek third-party financing to build and operate the new mill. Additionally, Northern Pulp will pay $15 million to settle previous woodlands-related debt, while retaining ownership of the woodlands. If the new mill is not feasible, Northern Pulp’s assets in Nova Scotia will be sold to repay debts, fund and wind up pension plans, and cover cleanup costs.

The Pictou site will be maintained for potential future logistics operations and kept in cold hibernation during the feasibility study. Northern Pulp Nova Scotia will comply with existing environmental regulations and continue site maintenance.

Regardless of the feasibility study’s outcome, the pensions of current and former Northern Pulp employees will be fully funded and discharged. This settlement also includes the withdrawal of Paper Excellence’s lawsuit against the province and the settlement of all debts.

Paper Excellence aims to support Nova Scotia’s forestry sector and address historical community and First Nations concerns through transparency and collaboration.

The British Columbia Supreme Court will review the settlement agreement on May 31, 2024. Documents related to the agreement were filed on May 22, 2024, and are available for public viewing.

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