Fort Frances Paper Mill Requires Massive Financing to Restart Operations

SEATTLE (Scrap Monster): Riversedge Development- the new owners of the Fort Frances paper mill declared that it may require them to invest hundreds of millions into the facility to get it back into operation. The comments were made by Justus Veldman of Riversedge Development. Meantime, Fort Frances Mayor June Caul expressed disagreement with the remarks.

According to Veldman, the paper machine and other infrastructure at the mill is in a state of serious deterioration, as certified by experts and former mill employees who toured the facility. The equipment at the facility including electric motor, pump, switchgear and pump needs to be either replaced or repaired.

However, Mayor Caul noted that the survey conducted by the sector experts did not mention serious concerns with the papermaking machine. He suggested another inspection of the site by an engineer in the presence of both the parties.

ALSO READ: Resolute's Sale Agreement Precludes Fort Frances Mill Restart

Meantime, Rainy River First Nations, in a letter addressed to the Ministry of Natural Resources and Forestry, warned that a potential restart of the Fort Frances mill would jeopardize the wood supply channels for a number of other operators. Changes in wood fiber allocations would damage all current parties, said Robin McGinnis, Chief, Rainy River First Nations.

It must be noted that Resolute Forest Products had spent nearly $35 million to maintain the mill in hot idle state following its shutdown in 2014.