Company announces plans to sell Cape Breton’s Donkin Mine

The Donkin Mine in Cape Breton could be for sale.

The company that owns the Donkin Mine in Cape Breton has announced its intent to sell.

Kameron Collieries ULC is in the early stages of the sale and has not entered into any sales agreements, said a Thursday news release.

Morien Resources Corporation holds a two-to-four per cent production royalty on sales from the coal mine. The Nova Scotia-based mining development company reported it received notice of the sale, said the release.

Kameron’s parent company, The Cline Group, is negotiating a potential sale with U.S. company Perella Weinberg. The agreement with Morien ensures its royalty is binding if there is a change in ownership.

Morien noted Nova Scotians are the company’s largest shareholder group and said it will publish more information when it becomes available.

Described by Nova Scotia as the world’s only operating subsea coal mine, Donkin opened in 2017 but closed in March 2020 due to slumping coal prices and roof collapses that led to repeated stop-work orders.

It resumed operations in September 2022 but closed again in July 2023 following a pair of roof falls.

The Nova Scotia Department of Labour cleared the mine to resume year-round operation in March 2024 but it remains closed.

With files from The Canadian Press

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