The Donkin joint venture between Swiss coal producer Xstrata Coal (75 percent) and Canadian miner Erdene Resource Development Corp. (25 percent) announced on February 10 that it has completed a strategic review of the Donkin Coal Project's development plan and will focus on opportunities in the coking coal export market.
The revised Donkin Coal Project, based on the Donkin Peninsula in Nova Scotia, Canada, is expected to produce approximately 2.75 million mt per annum of washed export grade coking coal at full output, starting production in 2011.
The decision to revise the project's overall scope follows local power provider Nova Scotia Power's announcement in late 2009 confirming it will not purchase raw coal from the Donkin Coal Project once the mine is operational.
In addition, Xstrata Coal is currently looking to obtain expressions of interest from potential strategic partners to contribute to the Donkin Coal Project.