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 Mmamabula Energy Project (MEP), the Export Coal Project and a potential Coal-to-Hydrocarbons (CTH) Project.

The Mmamabula Energy Project is the most advanced-stage independent power producer (IPP) project that can meet the urgent demand for new base load capacity in southern Africa . It is expected to be the largest private sector infrastructure project being developed on the African continent.

The Export Coal and CTH Projects are not being actively pursued until the closing of the financing for the MEP.

Botswana has been a stable democracy for over the last 40 years and has an A2 credit rating from Moody’s. Botswana 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 2008 CIC Energy announced an updated 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)

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

Shanghai Electric Group has been selected as the engineering, procurement and construction contractor.

CIC Energy submitted offers related to Power Purchase Agreements to the national electrical utilities of South Africa and Botswana, Eskom Holding Limited and Botswana Power Corporation respectively, in March 2009.

CIC Energy anticipates signing definitive loan agreements (or financial close) for the MEP as soon as practicable. The MEP will meet World Bank social and environmental standards.

Other Potential Mmamabula Energy Complex Projects

Once the MEP is financed, additional projects will be considered, including an Export Coal Project and a Coal-to-Hydrocarbons Project.

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 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, DRA 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.  CIC Energy management is currently reviewing the findings of these pre-feasibility studies.

Coal-to-Hydrocarbons (CTH) Project

Southern Africa is also facing a petroleum refining shortfall.  CIC Energy’s potential CTH Project is intended to convert some of the coal at the Mmamabula Coal Field to 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 major technical feasibility study was completed for the CTH Project in 2008 by Jacobs Engineering, as described in detail on the CTH Project page of this website.

An initial market study was completed for the CTH Project in early 2008.  This study assessed potential demands for the different downstream products that can be produced from syngas. It concluded that there are several opportunities to sell these products to the Southern African Development Community and international markets. 

A second phase detailed value-chain study, which included a more comprehensive market study, was conducted by Shell Global Solutions International and completed in late 2008.  CIC Energy management is currently reviewing the study’s findings. 

- October 2009 -