ontario news watch

N.S. reaches deal with owner of Northern Pulp, firm pursues new mill in Queens County

HALIFAX — The Nova Scotia government says it has settled with the owner of the Northern Pulp mill in Pictou County and that the company will pursue a new plant in the province’s southwest if the deal is approved by the courts.

In a statement, the province says that if the deal is approved British Columbia-based Paper Excellence will start a feasibility study for a potential new kraft pulp mill near the former Bowater mill in Brooklyn, N.S.

Nova Scotia says the agreement with Paper Excellence addresses the $450-million lawsuit the company launched against the province over the 2020 closure of Northern Pulp and the $99 million in loans the firm owes the province.

The Northern Pulp plant in Pictou County once employed about 300 people, and has been left idle since 2020.

It was shuttered after then-premier Stephen McNeil decided it would no longer be allowed to dump effluent near the Pictou Landing First Nation.

The settlement must be approved by the British Columbia Supreme Court.

This report by The Canadian Press was first published May 23, 2024.

The Canadian Press

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