The provincial government is going to extend a contract to buy electricity from Corner Brook Pulp and Paper.

Newfoundland and Labrador Hydro will pay Kruger $187 per megawatt hour for 280,000 megawatt hours, or about 18 cents per KWH, which is greater than the retail price charged by Newfoundland Power.

Government is extending the current agreement by one year on the contingency of the mill remaining in operation, and the workforce be maintained. The paper company employs about 380 people.

Government says the company has also agreed to continue to buy wood from Burton’s Cove Logging and Lumber, Sexton Lumber, and Cottles Island Lumber.

The province is extending the purchase arrangement to next summer while it negotiates a long-term deal.

Kruger, the owner of the mill, is working on a broader diversification plan which would involve construction of a wind farm.