Morien reports progress on buying rest of Donkin coal project

Canada’s Morien Resources Corp. (TSX VENTURE: MOX) said July 2 that following a June 27 Annual General Meeting of shareholders, the Morien board of directors confirmed the re-appointment of its executive officers: President and CEO John Budreski; CFO Ken MacDonald; and Corporate Secretary Suzan Frazer.

The company also said it continues to work closely with a group of prospective operating, marketing, coal purchasing and financial partners as it pursues the path of acquiring Xstrata Coal’s 75% interest in the Donkin Coal Project on Cape Breton Island, Nova Scotia. Morien already controls the other 25%.

An announcement by federal and provincial ministers regarding the environmental assessment approval for the Donkin Project is expected during the third quarter. The company said it anticipates a change in project ownership will follow with the receipt of the full environmental permit in the latter half of 2013.

Morien said it continues to work with Xstrata Coal and the Province of Nova Scotia to bring this sale process to a successful conclusion.

The Canadian Environmental Assessment Agency said April 9 that it is conducting a comprehensive study environmental assessment for the Donkin project, located on Cape Breton Island in Nova Scotia.

Xstrata Coal Donkin Management Ltd. is proposing the construction, operation and decommissioning of an underground coal mine facility at the site of the existing Donkin mine located on the northeastern tip of Cape Breton. The project consists of a multi-continuous miner underground 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.