CIC Energy Corp., the British Virgin Islands company engaged in the exploration of two greenfield coal properties in the Mmamabula Coalfields in Southern Africa, has commented on recent developments at Eskom Holdings Limited, the largest electrical utility in South Africa to which the BVI company submitted an offer in conjunction with the negotiations on the power purchase agreement. CIC Energy considers that current uncertainties regarding the leadership situation at Eskom will directly impact the evaluation and approval process for the Mmamabula Energy Project.
By words of Greg Kinross, President of CIC Energy, the company has followed the recent stories in the press related to the leadership situation at Eskom, and they think it is important that stockholders of the Mmamabula Energy Project “consider these events in the context of the recently published Electricity Regulations on New Generation Capacity.” He added that “While the practical application of these Regulations is still being developed, the Company’s understanding of the Regulations is that Government, and not Eskom, is now the decision maker with respect to the Mmamabula Energy Project.”
CIC Energy is in the process of direct engagement with the stakeholders from the South African Government, in the context of which the BVI company has commenced discussions on evaluation and approval process for the Mmamabula Energy Project under the Electricity Regulations, which were published by the Department of Energy of South Africa in August 2009.