One of the world’s cleanest, and most environmentally and socially advanced mills

Paper Excellence Canada is pleased to announce a $175,000 contribution to support the ongoing recovery efforts for individuals, families, and communities in Shelburne and Barrington, Nova Scotia, who were affected by the wildfires in June 2023.

Of the total funds, $115,000 will directly support families rebuilding damaged and destroyed homes, and $60,000 will support the We Rise Again Fund – Shelburne County’s efforts to help community members recover. Paper Excellence is grateful for its contribution partners, Freeman Lumber and Scotsburn Lumber, who are providing more than $66,000 in in-kind lumber to support rebuilding efforts, and Wilson’s Home Hardware Barrington for helping Paper Excellence provide families most in need with building supplies.

“Paper Excellence Canada is committed to supporting the provinces and communities where we operate, especially during challenging times like those experienced in Nova Scotia,” said Jean-Francois Guillot, Chief Operating Officer of Paper Excellence Canada. “The wildfires of June 2023 were incredibly devastating for many Nova Scotians and left numerous families with damaged and destroyed homes. We are hopeful that our contribution and the support of our partners will offer reprieve to those families most impacted in the Shelburne and Barrington areas.”

The We Rise Again Fund – Shelburne County was established to support rebuilding gaps, mental health, and healing support for individuals, families, and communities impacted by the fires. All funds raised through the We Rise Again Fund – Shelburne County will support local needs, with local decision-makers ensuring local impacts.

“Our goal is to raise $1 million to support our community members following the devastating wildfires,” said Samantha Brannen, Fund Representative, We Rise Again Fund – Shelburne County. “Paper Excellence’s substantial donation and support for our communities will jump-start the rebuilding efforts for many families and have had a lasting impact for years.”

Donations to the We Rise Again Fund – Shelburne County can be made at https://cfns-fcne.ca/weriseagainfund/.

Paper Excellence’s $175,000 contribution follows its $25,000 donation to the Canadian Red Cross Nova Scotia & Atlantic Canada Fires Appeal earlier this year. This donation received matched support from the Governments of Canada and Nova Scotia. Today’s donation brings the total contributed to those most impacted by the fires in Barrington and Shelburne to $200,000.

Since hibernating the mill and voluntarily entering creditor protection in 2020, Northern Pulp has been working in a financially prudent manner. On August 30, 2023, the Court extended our CCAA stay period until November 30, 2023.

Since June 2020, significant work has been done on the Environmental Assessment, including the Pictou Harbour Characterization, Air Quality, Terrestrial Biology, and Outfall Location studies.

During the last stay period, pulp engineering and design firm KSH Solutions advanced its research into emissions and equipment for the transformed mill. Makai Ocean Engineering completed a preliminary feasibility assessment for constructing a new outfall location. Our team also spent time identifying the relevant studies conducted since 2018 that we believe can meet the requirements of the current environmental assessment terms of reference, saving both cost and time.

During this stay period, we remain focused on mediation and determining if we can reach a settlement with the Province of Nova Scotia. We can’t provide details of the confidential mediation, but the discussions and outcomes of this stay period will inform our ongoing environmental assessment and the likelihood of operating a transformed Northern Pulp mill.

While we focus on mediation, we are taking steps to reduce costs, including transitioning all employees to work remotely and reducing power consumption at the mill. These measures will ensure we are financially well-positioned to continue advancing our plans to operate a transformed mill in Nova Scotia if we have a clear path forward from mediation.

Effective Tuesday, September 5, 2023, Northern Pulp’s eighteen employees have transitioned from working at the mill to working remotely. This decision will enable us to temporarily reduce heating and power usage and hibernate all aspects of the mill's facilities, including offices. The transition to a remote work setup has been successful, and we have worked with each employee to ensure their home office is of equal or greater quality than their previous workspace at the mill.

Security will continue monitoring the Northern Pulp site at all times.

Paper Excellence Canada is committed to operating a modern pulp mill in Nova Scotia. These cost-saving measures will ensure we are financially well-positioned to continue advancing our plans if we have a clear path forward from mediation.

Our request for a four month CCAA stay extension has been approved by the British Columbia Supreme Court.

This allows us to continue the studies and public engagement required for the mill transformation Environmental Assessment.

We look forward to keeping the community updated on the latest studies, findings, and developments on the mill transformation.

Today the B.C. Supreme Court approved our request for an additional six-month CCAA stay. We are thankful that the Court has approved our requests and that we can continue to work toward operating a new mill in Nova Scotia.

We continue to support our employees and retirees, and to that end will continue providing retiree benefits and honour our employee and retiree obligations throughout this period. Our mediation discussions with the province are ongoing. We continue to proceed in good faith in these confidential discussions.

As we indicated to the courts, our tree nursery in Debert sustained significant damage during Hurricane Fiona. The Court has approved us to spend $1.1 million to purchase 12 new greenhouses and make repairs to the existing 13 greenhouses. As the largest tree nursery in the province—growing approximately six million seedlings annually—the seedlings grown at our Debert greenhouses are essential for reforesting Crown and privately-owned land from Yarmouth to Cape Breton.

As we heard once again a few weeks ago, Nova Scotia’s forestry sector needs a pulp market to make the transition to ecological forestry possible as the Lahey Report has indicated. A new mill is the solution and we will continue to work to the end for the benefit of all stakeholders.

Northern Pulp and its consultants will be conducting marine baseline studies in Pictou Harbour to inform its proposed transformation and Environmental Assessment report for the Nova Scotia Department of Environment and Climate Change.

The marine research conducted in Pictou Harbour, East River, Middle River, and West River throughout 2022 will measure water flows, currents and tides, collect water samples for analysis, and survey fish, fish habitat, aquaculture, vegetation, and sediment.

The initial baseline studies being conducted include:

• Measurement of water flows in and out of the rivers and Pictou Harbour
• Measurement of the currents and tidal data during rising and falling tides
• Water sample collection and chemical analyses at varying depths in the water column
• Water quality profiles for salinity (salt), temperature, turbidity (cloudiness), oxygen in water and pH
• Bathymetric surveys to measure the depth of water in the study area, as well as map the underwater features area

The work is non-invasive and will not interfere with commercial or Indigenous fisheries or marine traffic in the study area. Small boats may be seen in the area as they set up and begin monitoring. We have been in touch with Pictou Landing First Nation, local authorities, lobster fishers, and harbour users to notify them of this activity.

On Friday, June 10, 2022, Hon. Steven Guilbeault, Canada’s Minister of Environment and Climate Change, determined that Northern Pulp’s proposed transformation does not warrant designation under the federal Impact Assessment Act. This means that we will not be required to complete a federal Impact Assessment.

Our team is focused on completing the thorough provincial Class II Environmental Assessment. Federal departments such as Fisheries and Oceans Canada, Health Canada, Transport Canada, and Environment and Climate Change Canada participate as federal experts in the provincial environmental assessment. We look forward to working with them and Nova Scotia government departments throughout the EA process.

Learn more about Minister Guilbeault’s decision here: https://iaac-aeic.gc.ca/050/evaluations/proj/83479?culture=en-CA

Earlier this week, we filed our CCAA materials with the Court in advance of our April 29th hearing. Over the past six months, we have made progress toward our goal of operating a transformed mill and have requested a six-month extension to advance the environmental assessment and settlement discussions with the Province and get us closer to operations.

We have requested to continue providing retiree benefits and honour our employee and retiree obligations. The Province refuses to allow us to use our funding to make special top-up pension payments. As per our loan requirements, the special pension payments can only be made if there is progress on settlement discussions acceptable to the lenders. We will continue to work to advance settlement discussions and satisfy the requirements to make the special pension payments.

We are doing everything we can to restart the mill. The Province knows that its forestry sector needs a pulp market to make the transition to ecological forestry possible as the Lahey Report has indicated.

Northern Pulp will continue to defend our business, employees, suppliers, and customers with all the tools at our disposal. All we want is a fair, clear environmental assessment process and for the Province to live up to its obligations. Neither request is unreasonable.

The Province of Nova Scotia has filed an application seeking leave to appeal the mediation order. We are baffled by the Province’s approach which seems designed to stop any progress on a much-needed mill transformation. They have refused to engage in settlement discussions, retroactively changed legislation, and are now appealing the Court’s mediation order that would have us work together with the mediator on the 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.

We plan to object to the Province’s request for leave to appeal the mediation order and encourage the Province to participate in good faith in the mediation as they are required to do.

An update will be provided following the Court's decision on our requests.

Northern Pulp Nova Scotia (Northern Pulp) has submitted to Nova Scotia’s Law Amendments Committee its opposition to Bill 143, the Province of Nova Scotia’s proposed amendments to the Boat Harbour Act, which attempts to retroactively eliminate the Province’s responsibility to honour its contract obligations to Northern Pulp in connection with the 11 year reduction in the term of the Effluent Treatment Facility lease (Boat Harbour).

In its written submission, Northern Pulp outlines how the Province’s proposed amendments to the Boat Harbour Act not only limit the Company’s legal rights against the Province, but more importantly increase the risk for any organization doing business with the Province of Nova Scotia.

On April 1, 2022, the British Columbia Supreme Court directed Northern Pulp and the Province to enter mediation to work toward a negotiated resolution of outstanding legal claims and disputes. The Province wasn’t successful in opposing mediation in the courts so they are attempting to change the Boat Harbour Act to retroactively eliminate their responsibility and legal obligations.

It is a sad day when Government uses legislation to evade its contractual and legal obligations.

Any organization entering into a contract with the Province of Nova Scotia should now be concerned the Province believes it can enact laws to retroactively wipe out their legal and contractual obligations without any compensation.

Northern Pulps submission can be viewed here.

Today, April 12, 2022, Northern Pulp Nova Scotia (Northern Pulp) requested Nova Scotia’s Minister of Environment and Climate Change (NSECC) review the Environmental Assessment Terms of Reference issued by NSECC on March 14, 2022, for the proposed mill transformation and effluent treatment project.

Also today, the company made an application for a Judicial Review of the Environmental Assessment Terms of Reference to the Supreme Court of Nova Scotia. Northern Pulp’s request for Judicial Review is based on the Terms of Reference being unreasonable in several areas, including failing to set out definitive limits, standards, and regulations that must be met.

“Before we retain experts, conduct scientific studies, and prepare a thorough EA, we are taking every available step through the Nova Scotia Supreme Court and directly with the Minister to review and revise the Terms of Reference, so they are realistic, clear and better-defined,” said Sasha Irving, Vice President, Corporate Affairs, Paper Excellence Canada. “We have been meeting with residents and forestry sector stakeholders throughout Nova Scotia and the need for a transformed mill in the region is evident. We want to operate a transformed mill in Nova Scotia, but this can only be accomplished with reasonable and clear Environmental Assessment Terms of Reference.”

In its Ministerial Appeal, Northern Pulp requests the Hon. Tim Halman, Minister of NSECC, remove or revise several aspects of the Terms of Reference to ensure they contain conditions that are both achievable and protective of the environment, are not vague or uncertain, and are realistic and otherwise reasonable.

“The existing Terms of Reference ignored the overwhelming and reasonable requests from Nova Scotians for clear standards and independent experts. It is in everyone’s best interest for the Final Terms of Reference to have standards and to be led independent experts,’” said Irving. “These changes are necessary to ensure the public has confidence in the EA process and the final EA decision.”

Throughout the Ministerial Appeal and Judicial Review, Northern Pulp will continue to advance necessary, long-term environmental studies that are important aspects of a thorough Environmental Assessment Report.

Northern Pulp plans to transform the mill into a best-in-class operation and one of the world's cleanest, most environmentally focused 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 sawmill residuals essential 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.

View Northern Pulp's request for Ministerial Review here and the notice for Judicial Review here.