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.