Kameron Coal’s Donkin Mine has been idle since July 2023. Photo by CAPE BRETON POST FILEArticle contentThe firm that owns and operates Donkin Mine is in the early stages of seeking a potential buyer for the shuttered facility.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentIn a news release issued Thursday morning, Morien Resources Corp., the Nova Scotia company with a small royalty on the mine, reported it had received notice from Kameron Collieries ULC of its intent “to explore a sale of its 100 per cent ownership” in the mine.Article contentArticle contentArticle contentThe province’s Department of Labour, Skills and Immigration issued a stop-work order two years ago following a string of reported roof falls at the underground mine. The department lifted that order in Dec. 27, 2023.Article contentMonths later, the department received an updated engineer’s report from Donkin Mine’s owners — a significant step in the province’s decision of whether the mine could one day resume production.Article contentBut as of March 2024, there had been no new activity stemmed from the Long Beach Road facility.Article content“The Company understands that Kameron is in the early stages of initiating the sale process and has not yet entered into any binding sale agreement with a third party,” Morien Resources said in the release. “Kameron’s parent company, The Cline Group, has engaged U.S.-based Perella Weinberg Partners to lead the sales process.Article contentMorien Resources said it would publish further information on the sale process when it becomes available and as the process advances.Article contentArticle content“There is no assurance that the sale process will result in a completed transaction, nor can Morien provide guidance on timing, transaction terms, or expected outcomes at this stage, or the impact of the sale process or any completed sale on the prospects for the Donkin Mine to restart operations,” Morien Resources’ release said.Article contentThe Cape Breton Post left messages with Morien Resources president and CEO Dawson Brisco and Kameron Collieries. Neither returned calls by publication time.Article content“Under the terms of the royalty agreement between Morien and Kameron, Morien holds a two to four per cent production royalty on coal sales from the Donkin Mine. This royalty is binding upon Kameron and successor owners of the Donkin Mine and will continue if there is a change in ownership,” Morien Resources said in a statement.Article content Kameron Collieries ULC, also known as Kameron Coal, is the owner of Donkin Mine. Photo by CAPE BRETON POST FILEArticle contentFollowing the July 2023 stop-work order, 130 employees were laid off, some relocating to other Kameron-owned facilities elsewhere in Canada. A rally to save those jobs took place at the Glace Bay Miners Museum in November 2023.
Ownership group plots sale of Cape Breton’s Donkin Mine: Report
