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Forestry Minister Michael Gravelle says there's just not enough available wood.
Mayor Dennis Brown is still optimistic resources can be found for the company that wants the mill.
"We're going to have meetings with the new buyer," says Brown. "They're coming to northwestern Ontario to meet with us. There's a little ray of hope that maybe something can be worked out and get the mill working again, but it's a struggle."
Timber that had been used by the former mill has since been given to AbitibiBowater's mill in Fort Frances.