ENVIRONMENTAL: EIS filed for Donkin coal project

NOVA SCOTIA – Erdene Resource Development Corp. (25% of Halifax and joint venture partner and operator Xstrata Coal Donkin Ltd. (75% say the environmental impact statement for the Donkin coal project was filed on July 16, 2012, with the Canadian Environmental Assessment Agency. The project is subject to review under the terms of both the Canadian Environmental Assessment Act and Nova Scotia's Environment Act.

The Donkin project proposal includes the construction and operation of an underground coal mine on Cape Breton with a lifespan in excess of 30 years. The use of multiple continuous miners producing approximately 3.6 million t/y of run-of-mine coal is planned. A coal handling and wash plant will be built to produce approximately 2.75 million t/y of clean coal suitable for international coking coal markets as well as international and domestic thermal coal markets. It is anticipated that the coal will be transported to international markets via a newly constructed barge-to-ship load out facility.

Xstrata announced plans to sell its 75% share of the Donkin project in April 26, 2012. Erdene said the sale is expected to conclude before the end of this year.

Technical information about the Donkin coal project is posted at Erdene.com.

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