Nova Scotia's Donkin Coal Mine Put Up for Sale Amid Rockfall Issues

The Donkin coal mine in Cape Breton, Nova Scotia is up for sale by its US-based owner, Kameron Colliers ULC. The mine has been idle since a suspension of operations in 2023 due to rockfalls. Morien Resources Corp., a Nova Scotia-based company, owns a production royalty on coal sales from the mine and will continue to receive royalties regardless of ownership changes. It is unclear whether a sale will result in the mine restarting operations.

Halifax, Nova Scotia, July 2, 2025 — Morien Resources Corp. (TSX-V:MOX) has reported that it has received notice from Kameron Collieries ULC, the owner and operator of the Donkin Coal Mine in Nova Scotia, regarding Kameron’s intent to explore a sale of its 100% ownership in the mine. The Donkin Mine has been idle since 2023 due to rockfalls.

Under the terms of the Royalty Agreement between Morien and Kameron, Morien holds a 2-4% production royalty on coal sales from the Donkin Mine. This royalty is binding upon Kameron and any future owners of the mine and will continue regardless of ownership changes. Morien will continue to receive royalties from coal sales, even if the mine changes hands.

Kameron has engaged U.S.-based Perella Weinberg Partners to lead the sales process. The sale process is in its early stages, and no binding sale agreement has been entered into with a third party. Morien will publish further information as the process advances. It is important to note that 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.

The Donkin Mine’s future remains uncertain. The mine has been shut down due to safety concerns and rockfalls, and there is no guarantee that a sale will lead to its restarting operations. Morien’s management team has expressed caution about the potential impact of the sale process or any completed sale on the prospects for the Donkin Mine to restart operations.

Morien Resources Corp. is a Nova Scotia-based mining development company created in 2012. It holds a royalty on the sale of coal from the Donkin Mine and aggregate from the Black Point Project in Guysborough County, Nova Scotia. Morien’s management team exercises disciplined management of both assets and liabilities, prioritizing shareholder returns over corporate size or industry recognition.

References:
[1] https://www.globenewswire.com/news-release/2025/07/17/3117082/0/en/Morien-Receives-Notice-from-Kameron-to-Explore-Sale-of-Donkin-Mine-Interest.html