Eskom denies delaying Mmamabula project

Friday, February 01, 2008

South African power utility Eskom has strongly denied suggestions circulating in the industry that it was culpable in delaying the development of the Mmamabula coal-mine and energy project proposed for development in neighbouring Botswana, which is also poised to become arguably the largest independent power producer (IPP) supplying into the power-hungry South African grid.

The project, which could involve a 7.5-million-ton-a-year to 9-million-ton-a-year coal mine, as well as the 2 100-MW to 2 460-MW power plant, was being pursued by CIC Energy, which is listed on the Toronto Stock Exchange.

Eskom Enterprises MD Brian Dames said he had been given a board mandate to support the IPP project, as well as conclude a mutually beneficial power purchase agreement (PPA) with CIC.

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