Underground coal mining in Cape Breton has resumed after a 15-year hiatus.
The Donkin mine started producing coal at the end of February and the underground operation should churn out 2.75 million saleable tonnes of coal a year over the next three to four years.
With a resource of 481 million tonnes – 227 million tonnes in the indicated category and another 254 million tonnes in the inferred – the Donkin deposit has enough low ash, high energy coking and thermal coal to last for 25 years or more.
Dawson Brisco, vice president of corporate development for Morien Resources (TSXV: MOX), which has a royalty on coal production from the mine, says much of the product will be sold to Asian markets, but some of it could find a home in Atlantic Canada for power generation.
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