Canadian Mining Journal

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COAL COMEBACK – Xstrata interested in Cape Breton mine

NOVA SCOTIA - The Nova Scotia government has chosen Swiss-based XSTRATA to revitalize the Cape Breton coal mining i...


NOVA SCOTIA – The Nova Scotia government has chosen Swiss-based XSTRATA to revitalize the Cape Breton coal mining industry by reopening the Donkin colliery. The provincial government said it has awarded the coal resources to Xstrata Donkin Coal Development Alliance. The alliance includes XSTRATA COAL of Sydney, Australia (66%), ATLANTIC GREEN ENERGY DEVELOPMENT of Savannah, Georgia (14%), and KAOCLAY RESOURCES, a Nova Scotia-based miner (20%).

The alliance must apply for a mineral tenure licence covering Donkin within 270 days. Approval must be obtained prior to the beginning of exploration, and environmental approval is required before mining resumes.

The attraction for Xstrata Coal is the 200-million-tonne resource associated with the Donkin mine. The company says work will begin on the project in early 2006 with re-evaluation of the resources and a two-year feasibility study. Further information is available from Hilary Wilson at hwilson@XstrataCoal.com.

The Cape Breton Development Corp., a Canadian Crown company, formerly operated several coal mines on the shores of Nova Scotia. It sold off the assets since the last mine was closed in 2001.


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