Underground coal mine in Donkin is up for sale

Tom Ayers · CBC News

· Posted: Jul 17, 2025 5:15 PM EDT | Last Updated: 3 hours ago

The troubled underground ember excavation successful Donkin, Cape Breton, is for sale, according to a quality merchandise from a Nova Scotia institution with ties to the mine.

Morien Resources, a publically traded institution that gets royalties from the merchantability of Donkin coal, announced the merchantability process Thursday.

The excavation is tally by Kameron Collieries, which is owned by the U.S.-based Cline Group.

The excavation unopen down 2 years agone aft stone from the extortion fell doubly successful 1 week, erstwhile portion miners were moving successful the underground slopes that tally respective kilometres retired nether the Atlantic Ocean.

No 1 was injured, but the provincial authorities kept the excavation closed for respective months, demanding accrued information measures and an autarkic report.

It was allowed to reopen much than a twelvemonth ago, but is idle today, with a skeleton unit maintaining ventilation and flood controls.

History of extortion falls

According to the provincial Labour Department, the excavation has experienced 32 extortion falls of much than 3 tonnes since Kameron Collieries started accumulation successful 2017.

It suffered a smaller incidental 1 week earlier the ample extortion autumn successful July 2023, successful the aforesaid portion of the tunnel, but it was cleaned up rapidly and mining restarted 2 days later.

In the latest release, Morien Resources said the merchantability of the excavation is successful the aboriginal stages and is being handled by U.S. institution Perella Weinberg Partners.

The institution said the excavation proprietor has not entered into a binding income agreement.

Morien Resources said its royalty, which includes up to 4 per cent of ember income astatine highest production, is binding and volition proceed nether immoderate caller owner.

According to the company's yearly reports, by 2023 it had earned astir $3.2 cardinal successful royalties since the excavation opened successful 2017. 

That's based connected 2 per cent of sales, due to the fact that the excavation has ne'er reached afloat production.

At that rate, Kameron Collieries had sold astir $159 cardinal successful Donkin coal.

Morien Resources said the proprietor had poured much than $300 cardinal into processing the mine, meaning it has yet to interruption adjacent connected its investment.

Provincial royalties

Nova Scotia's Department of Natural Resources besides gets a royalty, but its outgo is simply a level interest of $1.15 per tonne.

The state said successful 2023 it had received $985,000 successful royalties from the Donkin mine, which works retired to astir 856,500 tonnes of coal.

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