Newfoundland and Labrador Signs Letter of Intent With Kruger to Extend Corner Brook 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 plan, including a proposed long-term power purchase agreement with Newfoundland and Labrador Hydro.

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

The government said it is also prepared to negotiate a longer-term agreement aimed at supporting the mill’s sustainability and potential future growth.

As part of the letter of intent, Corner Brook Pulp and Paper Ltd. will continue developing wood supply agreements with provincial commercial sawmill operators and expand silviculture investments to support sustainable harvesting practices. The company will continue operating the mill with one paper machine and maintain its current workforce during the term of the agreement.

The parties also agreed to explore implementation of the company’s long-term diversification project.

“Forestry has long been a mainstay of our rural economy, workforce, culture and heritage,” said Pleaman Forsey, Newfoundland and Labrador’s Minister of Forestry, Agriculture and Lands. He said the government would continue reviewing the diversification plan to ensure it benefits both the company and the broader provincial forest sector.

Energy and Mines Minister Lloyd Parrott said the extension would provide “the time and certainty needed to work toward a long-term solution” supporting mill operations and protecting jobs.

Finance Minister Craig Pardy said the extension allows the province to evaluate the implications of a long-term arrangement while ensuring value for Newfoundland and Labrador.