Destruction of Prince Albert mill on hold

A long-shuttered pulp mill in Prince Albert, Sask. has won a reprieve from the wrecking ball, the provincial energy minister said Monday.

Bill Boyd, minister of energy and resources, said he's been discussing the future of the mill with top executives with the company that owns it, Montreal-based paper giant Domtar.

The pulp and paper mill employed hundreds of people before it was shut down four years ago. More than 700 direct jobs were lost when it closed due to a flagging forestry-products market. Up until the time it closed, it had been in use since 1968.

In August, Shell Canada announced it could not reach a deal with Domtar to take control of the facility. There were rumours it was to be converted into an ethanol plant.

Soon after that deal sank, Domtar announced it was demolishing the site.

Boyd said he'd like the company to hold off on demolition until all possible options for the facility to remain standing are examined and exhausted.

"We still remain optimistic that something may be able to be done with the facility," Boyd said. "So we've asked [Domtar] to curtail the demolition until some of those scenarios play out."

Boyd would not be specific about the details of the negotiations, but said the province is acting as a facilitator to try to find a new buyer.

The company has agreed to hold off, Boyd said, but Domtar has offered no guarantees as to for how long.

"I think there was a very friendly discussion, let's curtail that for the moment and see if there's any further potential here," Boyd said.