The MDPP, which is being developed by Golden Conchord Holdings and CIC Energy, will tap into a section of the estimated two billion-tonne coal resource within the Mmamabula Energy Project to power the planned power station. The Mmamabula Energy Project, which CIC Energy and other partners are developing alongside the MDPP, envisages a 1200-megawatt (MW) power station and associated coalmine separate from the smaller MDPP.
Finalisation of the financials related to the MDPP is critical in enabling the developers to produce a tariff proposal to BPC, which is being targeted as the sole off-taker of supply. Securing a Power Purchase Agreement with BPC will enable CIC Energy and its equity partner to source funds and progress the MDPP towards commissioning. The Power Purchase Agreement will also allow MDPP's developers to submit an application for a coal mining licence to Government.Last week, CIC Energy SA's Chief Operating Officer (Mining), Eddie Scholtz told Mmegi that geological and technical studies related to the MDPP were nearing finalisation, paving way for the financial assessments. He explained that four years of various studies already done for the main Mmamabula Energy Project (MEP) had helped fast-track certain elements of the MDPP.
