Nova Scotia's Minister of Natural Resources, Tory Rushton, recently issued a statement regarding the progress of Northern Pulp's feasibility study, emphasizing the potential economic benefits of a new pulp mill in the region.
While the project is seen as a potential catalyst for job creation and the export of forestry products, the company announced that it has not yet met the financial threshold required to move forward with the initiative.
After nine months of collaboration between the provincial government and Northern Pulp to assess the economic viability of building a new mill in Liverpool, the company revealed that it has not been able to satisfy the financial criteria outlined in the settlement agreement. As a result, Northern Pulp has requested a five-week extension to review its financial model. The province has granted the request, expressing hope that changing circumstances might lead to a more favorable outcome.
Minister Rushton reaffirmed the government's commitment to the forestry sector, stating that the primary goal is to find viable opportunities that make sustainable use of the province’s fiber resources. A mill in the southern region of Nova Scotia could meet a crucial need and fill an existing gap in the local forestry industry.
The minister also highlighted that, even if this particular project does not move forward, other initiatives are underway, such as those involving Simply Blue and Vyterra Renewables, which aim to develop the province's natural resources in innovative ways. "This file is not closed—it remains open and active," he insisted.
Additionally, the government has made significant progress under the settlement agreement with Northern Pulp, securing protections for the company’s retirees, settling longstanding loans and lawsuits, and considering future plans for the Pictou mill site. While this phase has been completed, discussions about the future of the forestry sector in Nova Scotia continue.
The proposed pulp mill in Liverpool stems from a settlement agreement between Paper Excellence and the provincial government following the closure of Northern Pulp’s facility in 2020. The agreement, which resulted from a $450 million lawsuit, required Paper Excellence to explore the possibility of launching a new project in the region. Following the integration of Paper Excellence and Resolute Forest Products into Domtar in October 2024, the company has now secured a five-week extension to finalize its financial model for the Liverpool mill.
The future of the project remains uncertain, but the provincial government has reiterated its commitment to working with the forestry industry to explore viable solutions.
