N.S. government reaches settlement agreement with Northern Pulp
More than two years after British Columbia-based Paper Excellence, owners of Northern Pulp – the idled pulp mill in Pictou County – filed a lawsuit against the Nova Scotia government, the two parties have reportedly reached a settlement agreement.
According to a news release from the province, the agreement addresses issues including the $450 million lawsuit against the government regarding the mill’s closure in 2020, $99 million in loans the company owes to Nova Scotia, former mill workers’ pensions, and a potential investment in a new mill in Queens County.
Nova Scotia Premier Tim Houston makes an announcement in Halifax about Northern Pulp on May 23, 2024. (Jesse Thomas/CTV Atlantic)
“We’ve come a long way and have come to a resolution that is fair to all sides,” said Premier Tim Houston in the release. “The company believes there could be a future for them in Nova Scotia, working with the forestry sector in southwestern Nova Scotia, and we’re open to hearing them out.”
Paper Excellence launched the lawsuit in late 2021, claiming lost income after the province shut down the mill – which opened in the late 1960s – in January 2020 due to a failure to meet environmental standards in the Boat Harbour Act.
The release says the agreement – which is pending approval by the British Columbia Supreme Court – would see Paper Excellence conduct an independent feasibility study on a possible new kraft pulp mill in Queens County in the area of the former Bowater mill. The study could take six-to-10 months to complete.
If the study determines the new mill is viable, Paper Excellence would:
- pay roughly $50 million for court costs
- pay the province $15 million to settle its debts
- top up Northern Pulp pension plans by roughly $30 million
- seek financing and work with the province to establish a new mill
“The closure of the Pictou County mill in 2020 was a big blow to its employees and their families, as well as to the forestry families who have worked across the supply chain for generations, primarily in rural Nova Scotia,” said Tory Rushton, minister of natural resources and renewables, in the release. “A modern, efficient mill operating in the Liverpool area could create the pulp market this sector needs to rebuild, bringing with it good-paying, export-focused jobs.”
Stephen Moore, executive director with Forest Nova Scotia, said he's glad the province and Paper Excellence were able to strike a deal.
"We have an agreement that makes pensions whole and we have an agreement that could potentially bring hundreds of jobs to rural Nova Scotia and potentially over a billion dollars of investment in our provinces," he said. "This is a good day."
In a separate news release, Paper Excellence said if the new mill is deemed to not be feasible, the Northern Pulp group's assets in Nova Scotia will be sold and the proceeds will be used to repay debtor-in-possession financing, fund pension plans, and contribute to cleanup costs.
Paper Excellence also says the Pictou site will be maintained for potential future "woodland logistics operations."
A court hearing on the settlement agreement will be held on May 31.
- With files from CTV Atlantic's Jesse Thomas
For more Nova Scotia news visit our dedicated provincial page.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6928089.1718414815!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Foreign Affairs Minister insists there are no ‘traitors’ in Liberal caucus
Foreign Affairs Minister Melanie Joly insists there are no "traitors" in the Liberal caucus, after a report from the National Security and Intelligence Committee of Parliamentarians (NSICOP) alleged there are MPs and senators who are “semi-witting or witting participants” in foreign interference efforts.
Your father’s diet before you were born could have affected your health, a new study suggests
Your father's diet before you were born could have played a role in your health, a new study has found.
Global study ranks two Canadians cities high on list of most expensive places to buy a home
As Canadians continue to struggle with the extremely high cost of buying a home in some of the country’s major urban centres, a new global report is underscoring just how expensive some of those markets are.
'They're not human beings, they're animals': Trump blasts immigrants for taking jobs
Donald Trump blamed immigrants for stealing jobs and government resources as he courted separate groups of Black voters and hardcore conservatives in battleground Michigan on Saturday.
Rare surgery in Montreal allows 9-year-old girl to live normal life
A rare surgery at the Montreal Children's Hospital is allowing a nine-year-old girl to keep her adrenal glands and live a normal life.
Trudeau says Russia needs to be accountable for 'genocide' of taking Ukrainian kids
Prime Minister Justin Trudeau says Russia needs to be accountable for "an element of genocide" he says it's committing by taking thousands of Ukrainian children from their home and by trying to erase their Ukrainian identity.
Maine police kill armed man after a night of gunfire and burned homes
A Maine State Police tactical team fatally shot a man on a rooftop early Saturday after an hourslong standoff in which authorities said he opened fire at officers, two homes burned down and a person who fought with him apparently died.
BREAKING A 'brazen daylight shooting': 16-year-old boy was fatally shot in Scarborough during fight, say police
Toronto police are appealing for witnesses and information as they deploy a “significant amount of resources” into the investigation of the fatal shooting of a 16-year-old boy in Scarborough on Saturday afternoon.
Shooting at Michigan splash pad leaves 'nine, maybe 10 victims': authorities
Gunfire erupted at a splash pad in the Detroit suburb of Rochester Hills, leaving as many as 10 people wounded, authorities said.