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Botswana Another advance for coal-based power station

Toronto Stock-Exchange and Botswana Stock-Exchange-listed CIC Energy has signed a binding heads of agreement with International Power (IP) a leading independent power generation company, regarding the proposed development of a power station at the Mmamabula Energy project, in Botswana.

Mmamabula is an extension of the Waterberg coalfield in South Africa – host to South Africa’s largest coal mine, Grootegeluk, which is owned and operated by Kumba Resources, and Eskom’s associated 3 600-MW power station.

In terms of the agreement, IP has agreed in principle to acquire 50% of the equity in the vehicle that will develop the Mmamabula coal-fired power station.

It is envisaged that the power output from the plant will be sold under a long-term power-purchase agreement, predominantly to South Africa’s State-onwed power utility, Eskom, as well as Botswana’s power utility, Botswana Power Corporation.

The total development cost of the first phase of the project, which is expected to be between 2 400 MW and 3600 MW, will be more than $5-billion.

Additional information: Read the full story at Engineering News
News date: 18/10/2006

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