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Donkin coal production could rise to 3 million tonne annually over next two years - Morien

Coal News - Published on Fri, 11 Jan 2019

Image Source: International Mining
SP Global reported that production at Kameron Coal's Donkin underground coal mine on Nova Scotia's Cape Breton Island could reach 3.3 million short tons per year over the next two years, aided in part by a USD 75 million ongoing expansion project at an ocean-going port 20 miles south of the mine in Sydney, Cape Breton, according to Morien Resources.

Dartmouth, Nova Scotia-based Morien, Donkin's former co owner along with Xstrata Coal, owns a gross production royalty for Donkin of 2% on revenue from the first 550,000 short tons of coal sales per calendar quarter, and 4% on revenue from any coal sales from quarterly tonnages exceeding 550,000 short tons.

Since production started nearly two years ago, Donkin's ramp-up has been slowed by a number of issues, including its sixth roof fall on December 28 that has idled the mine. It is unclear when production will resume.

Morien, though, sees a bright future for Donkin, as evidenced by its Tuesday update that said Kameron continues to improve mine productivity by installing a continuous haulage flexible conveyor train in December. The new coal mining system replaces part of Donkin's shuttle car fleet and was approved by the Nova Scotia Department of Labour last month.

It is expected to "significantly" increase production volumes, and, as a result, export sales, in 2019 once mining resumes at Donkin, Morien said.

Morien said Donkin's production is anticipated to reach annual sales volumes of 2.98 million-3.3 million short tons over the next two years. The mine was expected to turn out 1.2 million to 1.8 million short tons in 2018, although official results are not yet available.

Source :

Posted By : Rabi Wangkhem on Fri, 11 Jan 2019
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