COAL EXPLORATION: Donkin project seeks customers

NOVA SCOTIA — As soon as customers can be found for the coal, the Donkin continuous miner exploration program near Sidney can advance. Joint venture partners Xstrata Coal Canada (85%) and Erdene Resource Development Corp. of Halifax have been testing the former producer for three years, pumping 450 million litres of water from the 7,000-metre twin access tunnels.

If the project goes forward, it will create 50 direct jobs initially. If it goes to full production during the longwall mining phase, 275 full-time positions will be created for 30 years.

The exploration phase has a price tag of $50 million, and the longwall phase will cost another $350 million. The coal resource includes 227 million tonnes of indicated and 254 million tonnes of inferred high volatile-A bituminous, high sulphur, medium ash material.

The Donkin project is one of three in Erdene's diverse growth portfolio. Learn more at www.Erdene.com.