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The talks come as the paper merchant continues searching for a buyer for the two loss-making operations.
A review over the future of the Tas Paper mills at Burnie and Wesley Vale has been ongoing for several months.
PaperlinX chief executive Tom Park said on June 1 that the company would make a final decision on the mills by the end of June.
Mr Park on Monday said PaperlinX was still in talks with Tas Paper employees, customers, government and its lenders and would not rule out a sale of the mills.
"We are continuing discussions with both the Tasmanian and Federal governments and will also look for any guidance to come from the Federal government's review of the Australian Pulp and Paper Industry due to complete late in the calendar year," Mr Park said.
PaperlinX spokesman David Shirer said possible government assistance was being discussed and that the company would not commit to a deadline for a final decision over the mills.
The review confirmed Tas Paper is running at a loss.
The review also considered four main options including retention of the existing businesses, partial closure, full closure or sale.
Analysts previously questioned the ability of PaperlinX to find a buyer and avoid closure costs of around $A150 million (US$120.98 million).
"Unless they can be sold, which is questionable, PaperlinX may be forced to incur large cash costs to close the two money-losing mills once and for all," Citi's Julian Bu and Scott Hudson said on June 1.
On Monday that concern appeared to be borne out.
"We're still looking," Mr Shirer said.
He said PaperlinX had had a range of discussions with various parties.
Closure costs of around $150 million would result in a net cash impact of $70 million to $80 million, Mr Park said on June 1 after the company warned its 2009 underlying earnings would be cut by up to 35 per cent to $100 million.
"That wouldn't be favourable to the organisation, so we continue to look for better options," he said at the time.
Mr Shirer on Monday said the quantum of the losses for Tas Paper would depend on the value of the Australian dollar when PaperlinX closed its books on Tuesday.
"It's a tough market out there and the Tasmanian mills are competing against imported paper and therefore the currency has a pretty big impact on their earnings," he said.
"US80 cents is a pretty tough place to be."
PaperlinX sold its Australian Paper unit to Japan's Nippon Paper Group on June 1 after completing negotiations with its bankers over $1.06 billion of debt and waivers for previous debt covenant breaches.
Its 2007/08 underlying earnings was $154.4 million.
PaperlinX's stock eased one cent to 42 cents.
(AAP) lm
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