The paper mill in Kapuskasing, Ont., in 2017, then owned by Tembec. Current operator Kap Paper said last month that it would have to idle operations after failing to obtain emergency government support.

The owner of an idled paper mill in Kapuskasing, Ont., says it will restart operations and recall the mill’s 300 employees “as soon as operationally possible” after receiving a government bailout.

The Ontario government, which provided more than $50-million in funding to Kap Paper over the past two years, committed to paying another $16.8-million “to stabilize the mill’s operations in the short term.” The federal government agreed to provide $12-million.

Dave Plourde, mayor of Kapuskasing and a director of the company, said those funds could last through Christmas and possibly longer

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