Resolute Forest Products plans to spend $50-million dollars on the new random-length mill, scheduled to begin production early next year.
President Richard Garneau says along with the creation of 90 new jobs, he sees it helping with it's pulp and paper operations in Thunder Bay and its repositioning of the mill in Fort Frances.
The company hopes to begin construction later this spring, but is still investigating potential sites.
Wood for the mill will come from Resolute's existing forest management units, including the Crossroute Forest which has been a source of fibre to the Fort Frances mill.
Roger Barber, general manager of wood products, says only the premium logs from those areas will be taken for the Atikokan plant with the chips from the sawmill directed to operations in Thunder Bay and Fort Frances.
The announcement is welcome news to the mayor of Atikokan.
Dennis Brown says its great news for the entire region, noting his town is back in the mill business
The former Buchanan owned mill at nearby Sapawe and Proboard closed a few years ago.
Atikokan Renewable Fuels, which is producing wood pellets for Ontario Power Generation's power plant in Atikokan, is now operating out of the former Proboard site.
