Glencore has completed the sale of its 75% interest in the Donkin Coal Project to Kameron Collieries, a subsidiary of the US-based Cline Group.
Canadian mining exploration and development company Morien Resources, which owns a 25% interest in Donkin, seeks to advance the project under the new arrangement with Kameron.
Located within 30km of a deepwater port, Donkin Coal Project in Nova Scotia has received environmental assessment approvals from the federal and provincial governments.
The Donkin project may employ around 300 people and produce close to 3.6 million tonnes of coking and thermal coal annually, probably from longwall and continuous mining operations.
The project is expected to have a lifespan of 30 years and involves the development of a coal deposit in North America.
Since 2006, Glencore and Morien have invested $43m in the fully permitted Donkin Coal Project and its reopening has been in the works for eight years.
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In the 1980s, former federal Crown company Devco dug the necessary tunnels for the project, but it was abandoned before the mine opened due to a decline in coal prices.
In July, the project received approval from Nova Scotia Environment Minister Randy Delorey.
Coal has been mined in the Sydney coal basin since the early 1860s.