Northern Pulp to Launch Legal Action over Pictou County Mill Closure

SEATTLE (Scrap Monster):  Northern Pulp plans to initiate legal action against the government of Nova Scotia over losses caused to it due to closure of the Pictou County pulp mill.

In a news release, the company stated that it has taken all necessary steps to preserve its legal rights, against closing of its treatment facility ten years prior to the expiry of lease. Northern Pulp stated that the mill closure has resulted in losses of approximately $450 million to the company. The mill was shut in January last year, following failure to attain approval for the effluent treatment plant.

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The newly elected government had requested the company to file its legal claims in connection with the closure of the mill. Furthermore, it had asked the company to provide ample time for the province to evaluate their claims, before going ahead with any sort of settlement discussions.

Accordingly, the company has made claims under the province’s indemnity for $100 in losses. The funds will be utilized to transform and restart the mill after receiving necessary environmental approvals. The plan to restart the mill will cost around $350 million, it noted. The total losses for the company are expected to exceed $450 million, it added.