Northern Pulp requests mediation to resolve legal claim with Province of Nova Scotia

Northern Pulp Nova Scotia (Northern Pulp) has requested the British Columbia Supreme Court appoint the Honourable Thomas Cromwell, C.C. as mediator to assist in reaching a negotiated resolution of outstanding legal claims and disputes with the Province of Nova Scotia relating to the forced closure of the mill 11-years before the end of the term of an Effluent Treatment Facility (ETF) lease.

“It is our hope that a mediated global settlement can be reached, in the best interest of all parties,” said Graham Kissack, VP EHS and Corporate Communications, Paper Excellence.

Northern Pulp submitted the Mediation Order request as part of its Companies' Creditors Arrangement Act (CCAA) proceedings.

Northern Pulp continues to be focused on the Nova Scotia Environment and Climate Change Class II Environmental Assessment (EA) for a proposed transformation of the Mill. The Company plans to transform the Mill into a best-in-class operation and one of the world's cleanest, most environmentally focused, and community-based mills.

A transformed Northern Pulp mill will reinstate well-paying rural jobs and support the local and provincial forestry sector. It will also provide a market for pulp grade wood and wood chips to support the full implementation of sustainable, ecological forestry practices in Nova Scotia as envisioned in the Lahey Report.

The more than $350 million investment in the Mill Transformation is expected to provide 600 construction jobs for two years. Significant longer-term benefits to the Province of Nova Scotia will include 330 direct and 2,679 indirect jobs, contribute $128 million in employment income, support 1,379 supplier companies including 943 in Nova Scotia, and generate $279 million in annual spending, most within Nova Scotia.