The Donkin Joint Venture has announced the completion of a strategic review of the Donkin coal project’s development plan. The revised project is expected to produce about 2.75 million tpa of washed export grade coking coal at full production.
The decision to revise the project’s overall scope follows local power provider Nova Scotia Power’s announcement in late last year that it will not purchase raw coal from Donkin once the mine is operational.
Xstrata Coal chief development officer, Jeff Gerard, said: “Xstrata Coal remains committed to the Donkin coal project and will continue to liaise with key stakeholders as we progress through the various internal and external approvals processes.”
In addition, Xstrata Coal is currently looking to obtain expressions of interest from potential strategic partners to contribute to the project: “This is a significant project for Nova Scotia and the people of Cape Breton. It has the potential to provide new employment opportunities for the area throughout each stage of its construction and operation,” said Gerard.
The Donkin Coal Alliance is a joint venture between Xstrata (75%) and Erdene Resource Development Corp. (25%).
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