Donkin coal project clears hurdle at Canadian environment agency

Morien Resources (TSX VENTURE: MOX) said July 16 that the Canadian federal Minister of the Environment has issued an environmental assessment decision for the Donkin Export Coking Coal Project on Cape Breton Island in Nova Scotia.

Said the department’s decision statement: “Having taken into consideration the Comprehensive Study Report and the public and Aboriginal comments filed pursuant to subsection 22(2) of the former Act, the Minister is of the opinion that: the Project, taking into account the mitigation measures described in the Comprehensive Study Report, is not likely to cause significant adverse environmental effects; and the mitigation measures and follow-up program described in the Comprehensive Study Report are appropriate for the Project.”

The minister has referred the project back to the responsible authorities, Fisheries and Oceans Canada and Transport Canada, for appropriate action based on the decision.

Morien said it considers this decision as the passing of a major milestone for the Donkin project, and will work diligently with other stakeholders to advance the project in a timely manner.

Morien is a Canadian company engaged in resource development and its principal asset is a 25% interest in the Donkin Coal Project in Nova Scotia. It also has been working lately to buy the 75% share of the project owned by Xstrata Coal.

The mine would work from entries on land under the Atlantic Ocean. The project consists of a multi-continuous miner operation producing about 3.6 million tonnes per annum (Mtpa) of raw run of mine coal that would be washed to provide about 2.75 Mtpa of product coal that is primarily suitable for coking coal markets, but may also supply thermal coal markets.

Morien, which acquired its 25% share of Donkin last year from Erdene Resource Development, has completed a bulk sampling program from the Harbour coal seam, the principal target seam at Donkin. Approximately 880 pounds of the bulk sample material was sent to SGS Laboratories in Kentucky and West Virginia for tests to confirm thermal and coking coal qualities.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.