Nova Scotia and Paper Excellence Settle Northern Pulp Dispute, Explore New Mill in Liverpool

Image Source: Paper Excellence

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The Province of Nova Scotia and Paper Excellence have reached a settlement agreement that cancels plans to reopen the controversial Northern Pulp mill in Pictou County.

The agreement, announced by Paper Excellence today, paves the way for a new possibility: a feasibility study to explore building a new, modern pulp mill in Liverpool, Nova Scotia.

The Pictou mill has been a source of contention for years, with environmental concerns surrounding its effluent discharge. Under the terms of the agreement, Paper Excellence will abandon its plans to redevelop the Pictou facility. However, the company will maintain the site for potential future logistics operations if the new mill project in Liverpool moves forward.

The feasibility study will be a key factor in determining the future of Nova Scotia's pulp industry. If the study concludes that a new mill in Liverpool is viable, Paper Excellence will seek third-party financing to design, construct, and operate the facility.

The agreement also addresses outstanding issues from the past. Paper Excellence will withdraw its lawsuit against the province and settle outstanding debts. Importantly, the agreement guarantees that regardless of the feasibility study's outcome, pensions for current and former Northern Pulp employees will be fully funded.

This settlement marks a turning point for the Nova Scotia forestry sector. While the Pictou mill chapter closes, a new possibility emerges with the potential development of a modern facility in Liverpool. The coming months will be crucial as the feasibility study determines the viability of this new project.