November 14, 2011
Ottawa starts environmental assessment of Donkin coal mine on Cape Breton Island, Nova Scotia
The Canadian Environmental Assessment Agency announced Monday it is starting a comprehensive study type of environmental assessment for the proposed Donkin Export Coking Coal Project on Cape Breton Island, Nova Scotia.
The project, which includes the construction of an underground coal mine, power line and a barge load-out facility, is a joint venture between Xstrata Coal Canada Ltd. and Halifax-based Erdene Resource Development Corp. (TSX:ERD).
CEAA has prepared the draft Environmental Impact Statement guidelines that identify potential environmental effects to be addressed and information that needs to be included in the proponent's EIS. Public comments are due by December 29.
In addition to the coal mine, the Donkin Export Coking Coal Project, if approved, would also include a coal handling and processing plant that would be constructed to produce coal ready for transfer to a new barge loading facility. The coal would be loaded onto a barge, moved by tug to a new transshipment location and loaded into ocean going vessels, according to CEAA.
Donkin Coal Alliance is 75-per-cent owned by Xstrata Coal Canada Ltd, which is part of Zug, Switzerland-based Xstrata plc, a metals and mining firm that reported $30 billion in revenues in 2010. The other 25 per cent is owned by Toronto-based Erdene, which is headed by president, CEO and co-founder Peter Akerley. Erdene is working on coking coal, gold, copper, molybdenum and construction aggregate projects in Canada, the U.S. and Mongolia.
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