Thunder Bay·Updated

Resolute Forest Products sells pulp, paper mill in Fort Frances, Ont.

Officials with the Town of Fort Frances announced Monday that Resolute Forest Products had sold its pulp and paper mill properties in the community.

Company closed mill in 2014, discussions around final sale of property began in December, 2018

An aerial shot of a small town.
In 2014, Resolute Forest Products said it was closing the Fort Frances mill as a result of poor market conditions. On Monday, the town announced that the mill has been sold to a new company. (Supplied)

Officials with the Town of Fort Frances announced Monday that Resolute Forest Products had sold its pulp and paper mill properties in the community.

According to an official statement posted on Facebook by the town, the properties have been transferred to a new company, believed to be a subsidiary of Riversedge Developments, which also has a partnership with a local entity.

"We are hoping that we will be able to work with a cooperative redevelopment company in Riversedge," Fort Frances Mayor June Caul told CBC News, adding that she is "not sure" what will happen next with the mill. 

She said there are still entities who are interested in purchasing the mill to restart it, and she hopes those parties will hold talks with Riversedge to try and make a deal.

News of the potential new operator has been known since December and the mayor, along with council and town members, have been monitoring the file and talking to Resolute, the province and the prospective buyers, including Riversedge.

The mill has been idle since 2014 and the company has been actively seeking buyers since it's closure.

Caul said she's still "very cautious" as she doesn't know the  full details for the future of the mill, but she plans to be "very proactive" to make sure she learns what those plans are.

"When we've been in conversation with [the owner of Riversedge], we have very much told him that we are working toward getting this mill up and running," she said, "and he gives us hope, but you never know what's going on in the back of his mind."

She said she is willing to "sit outside the gate of the paper mill"  and do whatever it takes to have the conversation she needs with officials and avoid having any part of the mill destroyed without the town knowing.

'Very possible' mill could be sold again

Caul said it is still "very possible" that the mill could be sold by Riversedge Developments to another company looking to restart the mill.

"We've been in conversation throughout the process with our MPP Mr. Rickford, and he has assured us that he will do what he can to make sure that if a company is buying this mill that they will have wood fibre that would come back here, so we're counting on him to continue with that promise," Caul added.

Riversedge Holdings is known for redeveloping the St.Mary's Paper site in Sault Ste. Marie, Ont.,  as well as buying and tearing down the mill in Red Rock, Ontario.