Xstrata Coal is seeking an operating coal company to assume its interest in the Donkin coal project in Canada. Xstrata Coal holds a 75% interest and Erdene Resource Development holds a 25% interest in the Donkin coal project joint venture, a proposed multi-continuous miner underground operation at the site of the existing Donkin mine located in Cape Breton, Nova Scotia.

“Over the past decade, Xstrata Coal has evolved, as has our business strategy, and core to that is a focus on larger volume mining complexes,” said Peter Freyberg, CEO, Xstrata Coal. “We believe the Donkin coal project is a valuable asset to a qualified partner and remain positive about its viability. We will continue to work closely with Erdene and the Province of Nova Scotia to secure an operating partner to advance the project to production.”

It’s estimated the Donkin mine could produce 2.75 million metric tons per year of steam coal.