CIC shares slide 15% as Mmamabula hits another snag

Exercising its legal discretion, Government opted not to renew CIC Energy's Mmamabula South prospecting licence, using a section of the law governing third renewals. Mmamabula South had already been renewed twice.

Although the non-renewal affects a small fraction of the 2.6 billion tonnes covered by the Indian firm's due diligence in making an offer to CIC Energy, it was expected the move would alter prospects of a prompt takeover substantially. The non-renewal comes a month after the takeover suffered another setback with CIC Energy's Chinese partner in a component of the Mmamabula project filing for dispute arbitration in Hong Kong, claiming the Indian deal jeopardises its interests.