FORT FRANCES, ON — The MPP for Kenora-Rainy River, Greg Rickford, says he feels there's still a chance to re-start the Fort Frances pulp and paper mill under new ownership.
Rickford posted his reaction on social media Monday, after Resolute Forest Products announced it had rejected a bid by Repap Resources to buy the idled mill.
Resolute stated that Repap's proposal fell short of what was needed: They failed to provide the required financial deposit, did not mark up the asset purchase agreement, did not address our key requirement to perform environmental remediation, and did not produce sufficient, committed financing to move forward. In addition, their refusal to agree to treat Resolute’s information on a confidential basis prevented them from accessing sufficient information to inform their bid and put forward a responsive offer.
Resolute said it is now "squarely focused" on completing arrangements to sell the mill assets to a company which will demolish it and redevelop the mill property.
Although Rickford could not be reached for an interview, on social media he expressed disappointment in Resolute's decision but added "I believe the paper mill is viable."
The Minister of Energy, Northern Development & Mines, and Indigenous Affairs said "I still believe there is an opportunity to work with Rainy River Packaging [a new company set up by Repap]...I know the community will continue to explore options that would see the mill open again."
Repap spokesperson Sean Twomey has remained silent regarding Resolute's rejection of his group's offer.
However, the Town of Fort Frances issued a statement Tuesday saying it remains "committed to attempting to transition the mill to an operational entity."
The statement echoed comments made Monday by councillor Douglas Judson in saying the town is "profoundly disappointed and disillusioned" by Resolute's decision.
Town officials have already met with Repap—which submitted the purchase offer as Rainy River Packaging Inc.—and with Rickford, and said they still hope to "broker a deal" between the company and Resolute.
