Province Issues Donkin Call for Proposals

Department of Natural Resources

December 13, 2004 10:37 AM

The province issued a call for proposals today, Dec. 13, to
explore and develop the Donkin coal resource block within the
Sydney coalfield.

"This coalfield is the largest coal resource in Eastern Canada
and, as such, is important to Cape Breton and Nova Scotia's
economy," said Cecil Clarke, Minister of Energy on behalf of
Richard Hurlburt, Minister of Natural Resources. "It is
imperative that it is mined responsibly by a company with
significant technical management and financial resources."

The successful bidder will be provided the exclusive right to
apply for a mineral lease for the coal resource as outlined in
the call for proposals. The lessee will be subject to the laws of
Nova Scotia and will be required to obtain all necessary
environmental approvals before mining begins.

"We made a commitment to the people of Nova Scotia in our energy
strategy that we would develop these resources in a responsible
way," said Mr. Clarke. "And that's what we're doing."

The province engaged Pincock, Allen and Holt, an internationally
respected mining engineering consulting company, to help the
department prepare the evaluation criteria, evaluate proposals
and make recommendations regarding the successful bidder.

The call for proposals and background on the Donkin coal resource
block can be accessed on the website at
http://www.gov.ns.ca/natr/meb/donkin .


FOR BROADCAST USE:

     The province has issued a call for proposals to explore and

develop the Donkin coal resource block in Cape Breton.

     Located in the Sydney coalfield, the block is the largest in

Eastern Canada.

     The province says the successful bidder must have the

significant technical management and financial resources

necessary to mine the block responsibly.

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Contact: Mary Anna Jollymore
         Natural Resources
         902-424-2354
         E-mail: jollymmt@gov.ns.ca

         John Perkins
         Department of Energy
         902-424-1757
         E-mail: perkinje@gov.ns.ca


djl         December 13, 2004        10:36 A.M.