With Morien now waiving its right, Glencore can move forward with its sale to Foresight and Donkin’s road to commercial production pending regulatory approvals.
Morien called the Cline Group “a reputable, capable operator” with the potential to establish “a safe, efficient and viable long-term operation in Cape Breton.”
“The decision by our board to waive our right of first refusal was predicated on the quality of the partner,” Morien CEO John Budreski said. “The Cline Group has a strong reputation as a high-quality mine developer and operator. Their development experience in both continuous miner and longwall mining and growing market exposure for similar quality products to the Donkin mine provide great synergy.”
Morien first announced on August 11 that a third party had agreed to Glencore’s sale terms for purchase of all of Glencore’s Donkin interests.
Donkin, located near a deep water port in Sydney, Nova Scotia, is fully permitted. Approximately $43 million has been invested in the complex since 2006, including $15 million by Morien.
Previous estimates of the mine indicate reserves of at least 480 million metric tons (mt) of coal, worth more than $1 billion, and the capacity for a workforce of as many as 300 at prime production levels.
