CIC Energy Corp. is developing the Mmamabula Energy Complex to maximize the value of the large Mmamabula coalfield in Botswana, Africa. The planned Complex consists of the following projects:

• Mmamabula Energy Project (MEP)
   
• Mookane Domestic Power Project (MDPP)
   
• Export Coal Project
   
• Coal-to-Hydrocarbons (CTH) Project

The MEP and the MDPP are being developed to meet the urgent demand for new base load power generation capacity in southern Africa. The MEP is expected to be the largest private sector infrastructure project being developed on the African continent.

Botswana has been a stable democracy for over 40 years and has an A2 credit rating from Moody’s. The country provides a favourable foreign investment climate with no exchange controls and low tax rates.

Exploration drilling at the Mmamabula Coal Field has largely been completed and in August 2009 CIC Energy announced a revised Canadian NI 43-101 global mineral resource estimate of approximately 2.6 billion tonnes of coal (in the measured and indicated categories.) This coal resource has the potential to supply multiple power stations as well as a coal export business and a coal-to-hydrocarbons plant.

CIC Energy is listed on the Toronto Stock Exchange under the symbol ELC and on the Botswana Stock Exchange under CIC Energy.

Mmamabula Energy Project (MEP)

South Africa is projected to require significant new baseload power generation capacity over the next several years. The MEP is a planned 1200 megawatt (net) power station and integrated coal mine to be located at the Mmamabula Coal Field in Botswana.  The MEP is targeted primarily to supply South Africa with power.

CIC Energy anticipates signing definitive loan agreements (Financial Close) for the MEP as soon as practicable following the completion of the second integrated resource plan (IRP2) by the Government of South Africa which is expected in 2010. The Company suspended all development activities for the MEP unrelated to the regulatory approval process in South Africa in December 2009, when South Africa’s first integrated resource plan (IRP1) was made public and unexpectedly did not cover the time period relevant for the MEP.

The MEP is being developed independently of the MDPP.

Mookane Domestic Power Project (MDPP)

The Mookane Domestic Power Project (MDPP) is CIC Energy’s newest project. It is a 300 MW power station and associated coal mine that will be built at the Mmamabula Coal Field.  Electricity from the power station will be targeted primarily to supply Botswana.

In February 2010, CIC Energy signed a Memorandum of Understanding with GCL Projects Limited, an affiliate of Golden Concord Holdings Limited (GCL).  Under the proposed project structure, GCL will be the majority equity investor of the MDPP, and affiliates of GCL will act as the construction contractor and operator of the power station and mine. CIC Energy will be a 30% equity holder in the MDPP.

The MDPP is a separate and distinct project from the MEP.  Next steps for the MDPP include agreement with GCL on key commercial terms for the project development and equity structure.

Export Coal Project

The Export Coal Project envisions seaborne traded A grade steam coal from the Mmamabula Coal Field being exported to international markets from the west coast of southern Africa. Plans for this project include:

• Dedicated mines with multi-product (double stage) beneficiation plants, as well as a rapid rail load-out  
   
• An approximately 1,500 kilometer Trans Kalahari Rail line (TKR) is planned to be constructed by a transportation consortium that could include CIC Energy.  Currently, the preferred rail route is to the west coast of southern Africa, through Botswana to a Namibian port.  
   
• Upgrading of a Namibian port, including a tippler to offload the rail wagons and stockpiling capacity to accommodate sufficient coal to load large ocean going vessels using a high a capacity ship loader

MRN Runge, Dowling Reynard and Associates (Pty) Limited and Aurecon assisted in conducting pre-feasibility studies on the multi-product mines, beneficiation plants, rail and port options for the Export Coal Project, which were completed in 2008. 

During 2010 the governments of Botswana and Namibia are working together on feasibility study on the TKR project.  Also, discussions are underway with coal producers in the region and other parties interested in participating as joint venture partners in the preparation of a bankable feasibility study for the TKR project.

Coal-to-Hydrocarbons (CTH) Project

CIC Energy’s  CTH Project has the potential to convert some of the coal at the Mmamabula Coal Field to gas, fuels and petrochemicals. First synthesis gas (syngas) is produced by gasifying the coal.  Then the syngas can be converted to a broad range of end-products including dimethyl-ether, gasoline, propylene and methanol.

A number of technical feasibility and marketing studies were completed for the CTH Project in 2008, as described in detail on the CTH Project page of this website. CIC Energy continues to evaluate potential product options and target markets.

- May 2010 -