Nova Scotia Journal

A firm with connections to Donkin mine says future of the facility is doubtful

Nova Scotia

Key takeaways: 

  • The mining development firm warned its shareholders that the mine could shut down for good.
  • Kameron Coal mothballed the Donkin mine in March 2020, noting complex geological situations.

A firm with links to the coal mine in Donkin, N.S., says the facility is in danger of shutting for good.

It opened in 2017 and was idled two years ago amid declining coal costs and falling rock in the underground slopes. But multiple people in Cape Breton have been expecting that the mine would continue one day, getting back the financial advantages that go with it.

Morien Resources, a publicly-traded mining development firm related to the mine’s owner Kameron Coal, says in a Q2 2022 report on its website that there is still an abundance of coal in the mine, and demand is on the rise. The equipment is in place and prepared to go.

However, it also has a sign for shareholders.

“The future of Donkin is anonymous and is contingent on Kameron’s decision to recommence functions,” the report states. “There is a significant chance that operations may not recommence under Kameron’s ownership.”

No insight into the owner’s purposes

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A firm with links to the coal mine in Donkin, N.S., says the facility is in danger of shutting for good

The report does not say why that warning is being given now.

Morien Resources CEO Dawson Brisco would not consent to an interview, but he said the firm has no insight into the mine owner’s intentions in an email.

“Morien, as a public firm, has a legal duty to its shareholders to reveal certain threats, which would have the Donkin mine potentially not reopening,” he said.

Kameron Coal owns 12 percent of Morien Resources’ shares, but Brisco said Kameron “is under no contractual obligation” to share its intentions with Morien.

Kameron Coal did not reply to a plea for comment.

Source – cbc.ca

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