It is also in the process of developing the Mmamabula power complex comprising a 1,200-MW power station that is targeted primarily to supply power to South Africa.
CIC also has a coal to gas project called the CTH Project, which has the potential to convert some of the coal at the Mmamabula Coal Field to gas, fuels and petrochemicals.
CIC also holds a 30-per cent stake in Botswana's 300 MW power station Mookane Domestic Power Project, currently under construction, in which GCL Projects Limited, an affiliate of Golden Concord Holdings had acquired a 70-per cent equity in March 2010.
Apart from investing in this project, CIC is also the construction contractor and operator of this power project.
Since Botswana is landlocked and exports coal via sea, CIC has planned to join a transportation consortium to build the 1,500km Trans Kalahari Rail line to a Namibian port on the southwest coast of Africa that is expected to begin in June 2011.
The proposed acquisition would have enabled JSW to secure the long-term coal requirement for its existing projects and also accelerate the capacity expansion for its imported coal-based projects.
JSW Energy has an operational capacity of 1,430 MW. It also has 1,710 MW of generating capacity in an advanced stage of completion. The company is targeting an aggregate generating capacity of 12,070 MW by 2015-16.
JSW Energy, which imports 70-million tonnes of coal annually mainly from Indonesia and South Africa, had said that CIC has reserves of good quality thermal coal with a low sulphur content, and the proposed acquisition would meet all its project requirements.
But the acquisition was subject to CIC meeting certain obligations, one of which included the Canadian miner settling its contractual obligations with GCL Botswana, an indirect subsidiary of Hong Kong based-Golden Concord Holding Group Ltd, an operator of power plants, coal mines, mineral mines and property development in China.
GCL has claimed that CIC has a contractual obligation to agree to a power purchase agreement and a coal supply agreement, which has been refuted by CIC.
CIC Energy continues to regard it as being entirely without merit. Although discussions have taken place between CIC and GCL with a view to settling the dispute, the issue still remains unresolved.
''It is disappointing that after almost eight months the transaction with JSW has not been completed despite several extensions to the original deadline,'' said Greg Kinross, president of CIC Energy.''
''We look forward to beginning discussions regarding the acquisition of the Company with other major corporations that have expressed interest in CIC Energy in recent months, as well as other parties,'' said Warren Newfield, CEO of CIC Energy.
CIC today said that it intends to open its data room to potential acquirers as soon as practicable following termination of the agreements with JSW. CIC Energy has already received several expressions of interest and CIC Energy advisors, Deutsche Bank Securities Inc. and Motilal Oswal Investment Advisors Pvt Ltd., will begin speaking with the advisors of prospective acquirers shortly thereafter.
While CIC said that it is willing to continue discussions with JSW Energy, any such discussions would have to be on a non-exclusive basis.
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