Canada's CIC Energy Corp, which is setting up a coal mine and major power unit at Mmamabula in Botswana, said it could need additional time to reach a conclusion on its power purchase agreement with South Africa's state-owned utility Eskom.CIC Energy said it was continuing discussions with Eskom over the power purchase agreement.
Eskom is negotiating with the government of South Africa over its funding model, and has clarified that it can not commit to the purchase of electricity from independent power producers until the funding model is finalized, the company said.
CIC Energy is developing the Mmamabula Energy Complex in Botswana, Africa and has plans to set up a 1,200 megawatts power unit and a coal mine at the project site.
On July 2, CIC said it submitted documents related to the power purchase agreement to Eskom Holdings Ltd and Botswana Power Corp and was awaiting their response to finalize a schedule to reach a financial closure of the project.
Shares of the company were down 2 percent at C$1.55 Friday morning on the Toronto Stock Exchange.
Post published in: Economy