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 Coalfield.  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 would be the majority equity investor of the MDPP, and affiliates of GCL would act as the construction contractor and operator of the power station. 

CIC Energy would be a 30% equity holder in the MDPP, and would be responsible for overseeing the development and operation of the mine.  It is expected that one or more additional parties will participate in the MDPP as strategic equity investors.

CIC Energy believes that some of the work that was done in preparation for the MEP can be adapted for the purposes of the MDPP, which will facilitate the rapid development of the MDPP. This includes:

• Coal resource planning
• Preliminary geotechnical analysis
• Infrastructure analysis and engineering design and analysis
• Environmental and social impact assessments
• Draft documentation negotiated with Botswana Power Corporation and the Government of Botswana

The MDPP will be developed independently of the MEP, which is targeted primarily to supply the South African market.  In particular, the mine for the MDPP will be developed on a different portion of the Mmamabula coalfield, and the power station for the MDPP will be located on a site adjacent to, but physically separate from, the power station site planned for the MEP.

Next steps for the MDPP include agreement on key commercial terms for the project development and equity structure with GCL.

-March 2010-