Notice of Commencement of an Environmental Assessment

Donkin Export Coking Coal Project

Cape Breton (NS)

November 14, 2011 (Updated May 16, 2012) -- On August 8, 2011, the Canadian Environmental Assessment Agency (the Agency) received a project description in accordance with the Establishing Timelines for Comprehensive Study Regulations.

Based on information it has received, the Agency has determined that the project is described in the comprehensive study list and that an environmental assessment pursuant to the Canadian Environmental Assessment Act is required. As a result, a comprehensive study commenced on November 4, 2011.

The proposed project consists of the construction, operation and decommissioning of an underground coal mine facility at the site of the existing Donkin Mine located on the northeastern tip of Cape-Breton in Nova Scotia. The mine would have a lifespan of 30 plus years and extract approximately 3.6 million tonnes of coal per year. The project also includes a coal handling and processing plant that would be constructed to produce coal ready for transfer to a new barge loading facility. The coal would be loaded onto a barge, moved by tug to a new transshipment location, and loaded into ocean going vessels.

The project includes all activities and physical works associated with the construction, operation and decommissioning of the proposed Donkin Export Coking Coal Project, including, but not limited to, the following activities and components:

• underground coal mining;
• a coal handling preparation plant with a dry disposal reject handling system;
• ancillary services to support the underground mine and coal handling preparation plant, including a 138 kilovolt power line from Victoria Junction to the Project site;
• coal and mineral rock waste disposal and water treatment infrastructure;
• a barge load-out facility adjacent to the Donkin Peninsula to transport product coal to a transhipment mooring located southwest of Cape Morien; and
• marine transportation from the barge load-out facility to the transhipment mooring.

An environmental assessment is required in relation to the project because Fisheries and Oceans Canada may take action in relation to section 32 of the Fisheries Act and to subsection 35(2) of the Fisheries Act. Transport Canada is participating in this environmental assessment as they might be required to make a decision in respect of the project.

This project is also subject to the environmental assessment requirements of the Government of Nova Scotia.

As per the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects, this environmental assessment has been identified as a major natural resource project. For additional information refer to the Major Projects Management Office's Tracker that monitors the progress of proposed major resource projects through the federal regulatory review system.

For further information on this environmental assessment, please contact:
Donkin Export Coking Coal Project
Canadian Environmental Assessment Agency
Micheline Savard, Project Manager
1801 Hollis Street
Suite 200
Halifax  NS  B3J 3N4
Telephone : 902-426-0564
Fax : 902-426-6550
Email : XstrataCoalDonkin@ceaa-acee.gc.ca

and refer to Registry reference number 11-03-63924