The paper mill in Kapuskasing, Ont., in April of 2018, then owned by Rayonier Advanced Materials. Kap Paper says the mill is idling its operations after failing to secure a multimillion-dollar rescue package from Ottawa.

A northern Ontario paper mill said on Monday it was idling its operations after failing to secure a multimillion-dollar rescue package from Ottawa.

Kap Paper, which has operated in the town of Kapuskasing more than a century, said it was unable to get the short-term support it needed even after the province of Ontario had given the company $50-million in loans.

The newsprint and bulk paper producer said 420 people work at the mill and that 2,500 indirect jobs could also be affected.

The company said in a statement that the government of Ontario had urged it to appeal t

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