The Huber Mill project in Cohasset will not proceed after a court ruling earlier this week ordered the City of Cohasset to reconsider its environmental review.
The $440 million OSB production facility was slated to create 150 jobs and was touted by Governor Tim Walz.
The project was one mile east of the Leech Lake Reservation, with the Band voicing concern over treaty-protected resources in the area.
The project would have required filling numerous wetlands connected to the Mississippi River, which could have had a detrimental impact on wild rice stands.
Cohasset conducted a less-intensive environmental assessment worksheet but the Minnesota Court of Appeals ruled in favor of the Leech Lake Band of Ojibwe and other appellants for a more thorough and time-intensive environmental impact statement.
The North Carolina company issued a statement saying that due to the high demand for their products, they would seek to build the plant in another state to avoid delays.