Nova Scotia, Canada-based miner Erdene Resource Development Corp. has said that initial site construction work has commenced for the Donkin Coal project, a joint venture between Erdene (25 percent) and Swiss mining giant Xstrata's subsidiary Xstrata Coal Canada (75 percent).
The project, located on Cape Breton Island, Nova Scotia includes 227 million mt of indicated and 254 million mt of inferred high volatile-A bituminous, high sulphur, and medium ash coal.
Xstrata Coal, as project manager, has initiated a number of key elements of the project in previous months including civil construction, engineering and pre-feasibility studies, environmental assessment studies and consultation with government officials, the press release said.
As SteelOrbis previously reported, the project which was revised on February 10 aims at producing 2.75 million mt of coking coal per annum, starting production in 2011.