JOHN DAY — Nearly three months after the last board rolled off the planer at Malheur Lumber, negotiations continue on a possible sale that could revive the mothballed John Day sawmill.

“We’re still in discussions and we’re still moving forward,” said King Williams of Iron Triangle.

The local logging outfit in late October signed a letter of intent to explore a potential purchase of the mill from its parent company, Prineville-based Ochoco Lumber.

While negotiations over price and other considerations continued in the background, Ochoco gradually wound down operations at the 42-year-old mill, which ground to a halt on Jan. 7.

Williams said the deal remains in the “due diligence” phase, as both parties work to hammer out the details of an agreement that would make financial sense for both sides. He added that some level of federal financial assistance remains a key factor in making the sale pencil out for Iron Triangle.

“There’s a lot of moving parts, there’s a lot of moving pieces and it’s just a lot to pull together,” Williams said.

According to an analysis by the Oregon Employment Department, idling the mill would set off a cascade of direct and indirect impacts that would eliminate 206 jobs and take $58 million out of Grant County’s economy. The Grant School District has said the shutdown would result in the loss of at least 60 students as families left the area in search of employment, costing the district more than $700,000 a year in state financial support.

Williams said he felt a sense of urgency to close the sale.

“It becomes more and more important to make it happen,” he said. “It’s important to this community to make sure there is a mill in this community.”

Meanwhile, Grant County’s only other lumber mill, Prairie Wood Products in Prairie City, remains in a largely dormant state.

The D.R. Johnson Lumber subsidiary reopened in 2022 after a yearslong shutdown, then closed again in March 2024. Since then it has operated at a greatly reduced capacity with a skeleton crew.

Chief Financial Officer Trent Middlebrooks said his company is “working extremely hard” to keep  Prairie Wood afloat while awaiting developments that could impact market conditions for lumber.

“I think everybody is kind of in a holding pattern about the tariffs, waiting to see what’s going to happen,” he said. “I think it’s going to be good. We’re hoping those pay dividends.”

At the same time, Prairie Wood continues to pursue market opportunities that would enable it to restart its cogeneration plant, which burns wood waste to generate electricity.

“We think the availability of a power contract is out there,” Middlebrooks said. “We just have to find the right one.”