The Ministry of Forests is moving to pull the plug on Meadow Creek Cedar near Kaslo.
The operation at the north end of Kootenay Lake has been placed under notice for pending cancellation of their licence.
That will happen August 7th.
The Ministry says the reasons for the decision include its dissatisfaction with steps taken by the company to meet remediation order deadlines.
It says they also have an extensive history of non-compliance in managing financial and legal obligations.
The Meadow Creek Cedar forest licence has an allowable annual cut of 96,000 cubic-metres.
The mill burned down in November.