Morien working to advance the Donkin coal mine project in Canada

Morien Resources (TSX VENTURE: MOX) said March 11 in a brief statement that it has been actively working with Glencore-Xstrata and the government on the Donkin Coal Project in Nova Scotia to arrive at an agreement that allows for initial mine development.

Notwithstanding a challenging process, Morien said it continues to dedicate substantial resources to advancing these negotiations and remains confident that an arrangement can be reached between the company and Glencore-Xstrata resulting in a change of ownership for the Donkin Coal Project and moving the project to the start of production.

Morien said in November 2013 that it had finalized the terms of a Letter of Intent with an unnamed party for a coal off-take agreement from the Donkin Coal Project located in Cape Breton, Nova Scotia. Morien has been working to buy the 75% stake in the project held by Glencore-Xstrata.

The tunnel entries for the partially developed Donkin mine are on land, with the tunnels then quickly diving under the adjacent Atlantic Ocean, where most mining will take place. Under-seabed mining has been done before in this region. The project consists of a multi-continuous miner operation producing about 3.6 million tonnes per year of raw run of mine coal that would be washed to provide about 2.75 million tonnes/year of product coal that is primarily for coking coal markets, but may also supply thermal coal markets.

Morien is a Canadian company focused on creating value through the identification, acquisition and advancement of strategically located projects that host commodities with strong market fundamentals. Its principal asset is a 25% interest in the Donkin Coal Project.

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.