Pan Pac is searching for an alternative solution to fix its broken wastewater pipe after a third attempt has failed.
It comes six months after a resident first reported discolouration near the water's edge at Whirinaki Beach, which was found to be seepage of treated wastewater from Pan Pac's wastewater treatment plant.
In a letter sent to residents on Thursday, the mill's managing director, Doug Ducker, said the company plans to use an alternative method of pipeline repair using a rigid pipe insert rather than the fibreglass patches and Swiss liner considered earlier.
"Further pipe cleaning and inspections have determined additional failures due to corrosion evident on the bottom of the existing pipe," Ducker said.
"The nature of this damage would likely pose risks to the integrity of the fibreglass patch and liner solutions that we have been working toward over recent weeks."