CIC Energy Corp. has begun both a feasibility study and a detailed market study on a coal-to-hydrocarbons project in Botswana at its Mmamabula Coalfield. The coalfield is part of the US$9.5 billion Mmamabula Energy Project, a planned power station and integrated coal mine.
The current Mmamabula coal resource estimate of approximately 2.3 billion tonnes, in the measured and indicated categories, exceeds projected coal consumption for both Phase One and Phase Two power plants. In addition, ongoing exploration is expected to lead to a further increase in the coal resource.
CIC appointed Jacobs Engineering Group Inc. to conduct a feasibility study on the production of syngas from coal which can be converted to a variety of downstream products including chemicals, gas and fuels. Completion of this feasibility study is expected in the second quarter of 2008.
CIC Energy also announces the appointment of Wood Mackenzie to do an in-depth market study for the Company’s CTH Project, to assess the potential demand for the different downstream products that can be produced from syngas including chemicals, gas and fuels. The first phase of this market study is expected to be completed in the first quarter of 2008.
CIC Energy also announced that the Government of Botswana has approved the Environmental Impact Statement for all planned transmission lines in Botswana related to the Mmamabula Energy Project. Approximately 50 kilometers of transmission lines will be constructed from Mmamabula to the South African border, to tie into the electrical grid belonging to Eskom Holdings Limited, South Africa’s national electrical utility.
Additional transmission lines will connect the Mmamabula Energy Project to Botswana’s electrical grid, owned and operated by Botswana Power Corporation (BPC), which includes BPC’s Morupule power station. This environmental approval complements the approvals for the Company’s power station and mine announced on 29 October 2007.