CIC signs development deal for Mmamabula

Barely a week after announcing that the off-take of the project was likely to be delayed by at least a year, CIC came back to excite the market this week by announcing the clinching of a project development agreement with International Power (IPR), a British independent power generation company.In a statement, TSX-listed CIC said on Monday it had signed a project development agreement with International Power with respect to its $3 billion (P22 billion) Mmamabula project.

"The agreement had been negotiated in accordance with an earlier agreement, in September 2008, pursuant to which CIC Energy and IPR agreed to continue to work together in developing one or more power stations in Botswana by using coal from the Mmamabula coal field," the CIC statement said.