With continuing demand from power stations around the world for thermal coal, CIC Energy is pursuing the opportunity to export seaborne traded A grade steam coal from the M2 (lower) coal seams of the of its Mmamabula Coal Field in Botswana. 

Key elements of the Export Coal Project include:

• Dedicated mines with multi-product (double stage) beneficiation plants, as well as a rapid rail load-out, envisaged to be built at the Mmamabula site.
   
• An approximately 1,500 kilometer Trans Kalahari rail line, 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.
   
• At the Namibian coast, a coal terminal and loading facility is envisaged to be built to be able to load large ocean going vessels at a high rate to minimize demurrage cost.

Pre-feasibility studies on the mines, washing plants, rail, coal terminal and port were completed in 2008 by MRN Runge, DRA, Aurecon and CIC Energy’s mining team.  The Company is evaluating the findings of these studies, in light of the current weak economic and energy market conditions. 

CIC Energy’s initial talks with the Governments of Botswana and Namibia have been well received.  It is envisaged that a mining subsidiary of CIC Energy would enter into a long-term agreement with the transportation consortium for a substantial proportion of the new Trans Kalahari rail capacity.

The Export Coal Project is not being actively pursued until the financing for the Mmamabula Energy Project has closed. 

- October 2009 -