BVI-registered CIC Energy Corp., engaged in the exploration, development and operation of two coal properties in the Mmamabula Coalfields in Southern Africa, provided an update concerning regulatory developments in South Africa which resulted in company’s decision to defer certain financial, legal and engineering activities related to the Mmamabula Energy Project.
In the beginning of December, the Minister of Energy of South Africa provided information regarded the integrated resource plan under the Electricity Regulations on New Generation Capacity. In connection to this, the Company has revised and re-evaluated its current program of project development activities for the Mmamabula Energy Project. This program was designed to facilitate a rapid achievement of financial close and commencement of construction once a regulatory approval had been received. Now the company has determined that it would be reasonable to defer the project development activities unrelated to the regulatory approval process in South Africa, by deferring activities that are being performed by the financial consultants, legal consultants and engineering consultants who are assisting the BVI company in the development of the Mmamabula Energy Project.
This determination does not affect CIC Energy’s program of project development activities for the Export Coal Project and the Coal-to-Hydrocarbons Project, which are intended to be continued as previously planned.