Boreal forest on Slate Island, Ontario.
Ontario NDP leader Andra Horwath is accusing Resolute Forest Products of “blocking” the sale of its shuttered Fort Frances mill to Wisconsin-based Expera Specialty Solutions.
Prior to its final closure this year, the troubled Northwestern Ontario mill had witnessed significant staff reductions. Commenting at the time, Unifor national representative Stephen Boon stated that “The decision by Resolute… to permanently close the Fort Frances mill is a final major blow to the community of Fort Frances and to our members and their families there.”
And then came a ray of hope in the form of Expera Specialty Solutions, a specialty paper producer backed by KPS Capital Funds, who appear to have been in discussions regarding a buy-out of the mill with the town of Fort Frances, municipalities and First Nations since at least September.
News over the weekend that talks between Resolute and Expera has collapsed was stunning – with roughly 200 direct jobs and 800 indirect jobs on the table, finding a new buyer for the mill is imperative. Especially with Resolute indicating its intention to not heat the mill this winter, potentially rendering this economic engine inoperable.
Media reports suggest that Resolute’s sole control of the nearby Crossroute Forest was the sticking point in talks collapsing. The town of Fort Frances and local First Nations have been advocating for an enhanced Sustainable Forest Licence (ESFL) to allow for a more inclusive, locally driven process for allocating fibre from the forest.
The province has been pursuing this more equitable forest management of the Crossroute since at least 2013. It is unclear at what stage of the transition process the Crossroute is currently.
Irrespective of who is at fault, Greenpeace urges all parties to work together to revive talks. Despite differences of opinion, there is clear common ground on where this project needs to be in 2015 – new owners in place at the Fort Frances mill, an equitable forest management arrangement and 200 good jobs in the Northern Ontario.