AbitibiBowater considering selling Iroquois Falls power dams again

AbitibiBowater has raised the idea of selling off the hydroelectric dams at its pulp and paper mill in Iroquois Falls, Ontario again.

"If this goes through, I expect the Iroquois Falls mill will be going from a low-cost mill to a very high-cost mill," said Mayor Gilles Forget. "There's a predicted decline in newsprint demand over the next three years, so that could potentially put us in a precarious situation.

"Our mill could be on the chopping block."

AbitibiBowater has been able to obtain inexpensive electricity because of the dams allowing the mill to remain competitive.

Mayor Forget had understood that he would be part of any negotiations if the dams were to be sold, because under the water power lease agreement, AbitibiBowater is not permitted to sublet, sell, or transfer any part of the company without government consent.

The mayor now believes the Ontario Ministry of Natural Resources has already given consent for the sale.

Read more:

AbitibiBowater selling dams - Iroquois Falls mayor fears for future of mill (The Daily Press)