Xstrata Coal Donkin Management Limited and Erdene Resource Development Corp
announced that Xstrata Coal is seeking an operating coal company to assume its
interest in the Donkin Coal project.
Xstrata Coal holds a 75% interest and Erdene holds a 25% interest in the Donkin Coal project joint venture, a proposed multi continuous miner underground operation at the site of the existing Donkin Mine located in Cape Breton, Nova Scotia, Canada.
Mr Peter Freyberg CEO of Xstrata Coal said that "Over the past decade, Xstrata Coal has evolved, as has our business strategy, and core to that is a focus on larger volume mining complexes. We believe the Donkin Coal project is a valuable asset to a qualified partner and remain positive about its viability. We will continue to work closely with Erdene and the Province of Nova Scotia to secure an operating partner to advance the project to production.”
Erdene president and CEO, Mr Peter Akerley said that "We would like to thank Xstrata for their contribution to the project and look forward to working with a new operating partner that will continue to advance the project towards production. The Donkin Coal project has unique attributes including its location on tidewater, its production readiness and its ability to deliver both a very high energy thermal coal and metallurgical grade coal with a proven track record of use in global steel manufacturing."
It is anticipated that the sale process will be concluded during 2012, with the selection of an entity with the mining experience, technical expertise and financial capability to operate this underground mine safely and efficiently. Erdene has a 60-day right of first refusal on the sale by Xstrata Coal of its interest in the Donkin project.
During this process the project timelines will be maintained with the planned completion of the environmental assessment, progression of engineering work and obtaining the necessary approvals for commencement of the underground exploration phase. The Canadian Environmental Assessment Agency approval process, which is required for project permission, is on track and full environmental approval is anticipated in early 2013. It's estimated the Donkin mine will produce 2.75 million washed product tonnes per year and will directly employ about 300 people, targeting commencement of coal production by mid 2014.
Xstrata Coal, under the joint venture agreement, is committed to fund the first $10 million of Erdene's development funding requirement. Xstrata Coal will bring forward up to USD 1 million of this to cover Erdene's share of expenditure on the project during the sales process.
Source - Xstrata Coal
(www.steelguru.com)
Xstrata Coal holds a 75% interest and Erdene holds a 25% interest in the Donkin Coal project joint venture, a proposed multi continuous miner underground operation at the site of the existing Donkin Mine located in Cape Breton, Nova Scotia, Canada.
Mr Peter Freyberg CEO of Xstrata Coal said that "Over the past decade, Xstrata Coal has evolved, as has our business strategy, and core to that is a focus on larger volume mining complexes. We believe the Donkin Coal project is a valuable asset to a qualified partner and remain positive about its viability. We will continue to work closely with Erdene and the Province of Nova Scotia to secure an operating partner to advance the project to production.”
Erdene president and CEO, Mr Peter Akerley said that "We would like to thank Xstrata for their contribution to the project and look forward to working with a new operating partner that will continue to advance the project towards production. The Donkin Coal project has unique attributes including its location on tidewater, its production readiness and its ability to deliver both a very high energy thermal coal and metallurgical grade coal with a proven track record of use in global steel manufacturing."
It is anticipated that the sale process will be concluded during 2012, with the selection of an entity with the mining experience, technical expertise and financial capability to operate this underground mine safely and efficiently. Erdene has a 60-day right of first refusal on the sale by Xstrata Coal of its interest in the Donkin project.
During this process the project timelines will be maintained with the planned completion of the environmental assessment, progression of engineering work and obtaining the necessary approvals for commencement of the underground exploration phase. The Canadian Environmental Assessment Agency approval process, which is required for project permission, is on track and full environmental approval is anticipated in early 2013. It's estimated the Donkin mine will produce 2.75 million washed product tonnes per year and will directly employ about 300 people, targeting commencement of coal production by mid 2014.
Xstrata Coal, under the joint venture agreement, is committed to fund the first $10 million of Erdene's development funding requirement. Xstrata Coal will bring forward up to USD 1 million of this to cover Erdene's share of expenditure on the project during the sales process.
Source - Xstrata Coal
(www.steelguru.com)
0 comments:
Post a Comment