Province signs letter of intent with Kruger to extend power agreement

The Government of Newfoundland and Labrador has signed a letter of intent with Kruger Inc., owner of Corner Brook Pulp and Paper Ltd., to continue discussions on the company’s diversification plans and a potential long-term power purchase agreement with Newfoundland and Labrador Hydro.

Under the proposed arrangement, the provincial government plans to extend the current interim power purchase agreement between Newfoundland and Labrador Hydro and Corner Brook Pulp and Paper for an additional 12 months. The extension would run from July 1, 2026, to June 30, 2027.

The province said it is also prepared to discuss a longer-term agreement aimed at providing greater certainty for the mill’s continued operation and future growth opportunities.

As part of the discussions, the company will continue developing wood supply agreements with provincial commercial sawmill operators and expand investments in silviculture to support sustainable harvesting practices.

Corner Brook Pulp and Paper will continue operating with one paper machine and maintain its current workforce while the letter of intent remains in effect. Both parties also agreed to explore the implementation of the company’s long-term diversification project.