Halifax-based Nova Scotia Power, the dominant electric utility in Nova Scotia, confirmed in late February it is in “very serious negotiations” with Donkin’s new owner on a potential coal sales contract. A deal could be reached this spring. No potential contract amounts or terms have been publicly disclosed.

In late 2014, Kameron/Cline acquired a 75% share of Donkin from Glencore Xstrata Plc, a year after the latter decided not go forward with completing the development of the mine and starting production, possibly before the end of 2015.

For several years, Erdene Resource Development Corp. of Dartmouth, Nova Scotia, a Halifax suburb, and Glencore, a Swiss-based commodity and mining company, pursued Donkin’s development. At peak, the mine could produce up to 3.6 million tons of steam and coking coal annually for domestic and export markets. The mine currently is permitted by the provincial government to produce 2.75 million tons a year.