Mining
Thursday, November 16th, 2023 4:53 pm EDT
Key Points
- Operational Setback at Donkin Coal Mine:
- Kameron Collieries, the owner and operator of the Donkin Coal Mine in Nova Scotia, has decided to lay off its remaining hourly workforce and place the mine into an idled state.
- The decision, made on November 10, 2023, comes after a 118-day Stop Work Order (SWO) initiated by the Nova Scotia Department of Labour, Skills and Immigration (DOL) in response to a roof fall incident on July 15, 2023.
- The SWO was imposed as a safety measure, and the mine has been idle since then, with no specific timeline provided for the resumption of operations.
- Technical Review by DOL and Uncertain Return to Production:
- The DOL conducted a press conference to present the findings of an independent engineer, contracted in September 2023, who completed a technical review of the Donkin Mine.
- Morien Resources Corp., holding a 2% to 4% royalty interest in the Donkin Mine, expressed the view that a prompt return to production is unlikely.
- The situation is deemed complex and evolving, requiring satisfaction of conditions to lift the SWO and resolution of regulatory and related matters for the mine to return to long-term, stable production.
- Morien’s Position and Commitment to Updates:
- Morien, a Nova Scotia-based mining development company, emphasizes the complexity of the situation at Donkin Mine and acknowledges the uncertainty regarding a quick resumption of operations.
- The company commits to providing ongoing updates to its shareholders, stakeholders, and investors as more information becomes available.
- Morien’s primary assets include a royalty on coal sales from the Donkin Mine and a royalty on crushed stone sales from the Black Point Quarry Project. The company prioritizes shareholder returns and exercises disciplined management of its assets and liabilities.
Morien Resources Corp. (“Morien” or the “Company”) (TSX-V:MOX), today provides an update on the Donkin Coal Mine (“Donkin” or the “Mine”) in Nova Scotia, owned and operated by Kameron Collieries (“Kameron”), upon which Morien has a 2% to 4% royalty interest.
The Nova Scotia Department of Labour, Skills and Immigration (“DOL”), a provincial regulator for the Mine, held a press conference yesterday afternoon to report on the findings of an independent engineer contracted by DOL in September to complete a technical review of the Donkin Mine. The following news release from DOL provides additional information:
Yesterday’s press conference follows Kameron’s decision on November 10, 2023, to lay off its remaining hourly workforce at the Mine and to place the operation into an idled state with no timeline to resume operations. This decision was made in consideration of a 118-day long Stop Work Order (“SWO”), in effect since July 15, 2023, put in place by DOL in response to a roof fall incident on July 15, 2023, where no one was injured, nor any equipment damaged.
Morien is of the view that a potential return to production will not be imminent and that this is a complex and evolving situation which will involve satisfying the conditions to lift the SWO, and also resolution of some regulatory and related matters to return the mine to long-term, stable production. Morien will continue to provide updates to its shareholders, stakeholders, and investors as to the status of operations at the Mine as they become available.
About Morien
Morien is a Nova Scotia based, mining development company created in 2012 to be a vehicle of direct prosperity for Nova Scotians, its largest shareholder group. Led by Nova Scotians, Morien’s primary assets are a royalty on the sale of coal from the Donkin Mine in Cape Breton, Nova Scotia, and a royalty on the sale of crushed stone from the permitted Black Point Quarry Project, in Guysborough County, Nova Scotia. Morien’s management team exercises ruthless discipline in managing both the assets and liabilities of the Company. The Company’s management and its Board of Directors consider shareholder returns to be paramount over corporate size, number or scale of assets and industry recognition. The Company has 51,292,000 issued and outstanding common shares and a fully diluted position of 54,192,000. Further information is available at www.MorienRes.com.
