Mill needs wood allotment before auction: Atikokan mayor

The Mayor of Atikokan says he's disappointed in the Minister responsible for Forestry. 

Mayor Dennis Brown is calling on Michael Gravelle to restore a wood allotment back to the Sapawe sawmill in order to help it find a buyer. The mayor added that action is needed quickly because the clock is ticking. 

The sawmill, formerly owned by the Buchanan Group, is set to be auctioned off on Sept. 27 and 28.

At one time, the Sapawe sawmill was the township's largest employer, providing 225 jobs to the area. The township and receiver are continuing to work with Montreal-based EACOM Timber. 

The company had entered into an asset purchase agreement for the mill earlier this year, but that deal stalled because of a lack of a wood supply. 

Discussions are also being held with other forest companies to access fibre. 

A similar auction will be held on Sept. 29 and 30 for the assets of Northern Sawmills in Thunder Bay, another bankrupt Buchanan company. 

The two mills owe General Electric more than $17 million.