Xstrata and Erdene Resource Development Corp have completed a strategic review of the development plan of Donkin Coal Project and will now focus on export coking coal market opportunities.

Approximately 2.75 million tonnes per annum of washed export-grade coking coal will be produced at the revised Donkin Coal Project when fully operational.

The decision to review the project’s scope came in the light of Nova Scotia Power’s announcement in late 2009 that it would not purchase raw coal from the Donkin Coal Project.

Xstrata Coal chief development officer Jeff Gerard said Xstrata Coal remains committed to the Donkin Coal Project and will continue to liaise with key stakeholders as they progress through the various internal and external approvals processes.

“The project has the potential to provide new employment opportunities for the area throughout each stage of its construction and operation,” Gerard said.

Xstrata said it is also looking for potential strategic partners to contribute to the Donkin Coal Project.