Donkin’s environmental impact statement was filed last week with the Canadian Environmental Assessment Agency. The approval process is expected to be concluded by the end of the second quarter 2013.

The update comes as 75% stakeholder Xstrata Coal and 25% stakeholder Erdene Resource Development pursue processes to transfer ownership of the project.

Xstrata announced in April that it was too big to hold onto its stake in Donkin and would seek out a buyer for its interest with the technical and financial capability operate the proposed underground mine.

Following Xstrata’s decision, Erdene said it would sell its 25% take to kaolin miner Advanced Primary Minerals and refocus development efforts on its Mongolian assets.

The environmental review of Donkin is subject to both the CEAA and the Nova Scotia environmental act. It will be a cooperative assessment process requiring both federal and provincial approvals.

The proposal includes construction and operation of an underground coal mine capable of producing 3.6 million tonnes per annum with multiple continuous miners.

A coal handling and processing plant capable of processing the coal will be constructed to produce 3Mtpa of coal for international coking coal markets and domestic thermal coal markets.

Donkin is estimated to have a mine life of more than 30 years.