CAPE TOWN (miningweekly.com) - Toronto-listed energy company CIC Energy on Wednesday reiterated that it could not proceed with the Botswana-based Mmamabula project without regulatory approvals from the South African government.

CIC Energy president Greg Kinross said at the Mining Indaba in Cape Town that the regulatory uncertainties were the biggest challenge confronting the advancement of the project.

The company deferred certain financial, legal and engineering activities related to the Mmamabula energy project in December.

The decision was driven by the South African government's development timeline for its energy sector integrated resource plan.

Kinross noted that the Mmamabula project could not be covered by the first integrated resource plan, which would only cover requirements for new generation capacity for the three-year period stretching from April 2010 to March 2013.

Thus, the company was awaiting the completion and approval of the second integrated resource plan (IRP2).

Kinross noted that the IRP2, which would outline requirements for new generation capacity for 2013 and beyond, was expected to be completed in June this year.

Based on the company's understanding of the regulations, an approval of the Mmamabula energy project by the Department of Energy would only be possible following the completion and Gazetting of the IRP2.

He added that it was the most advanced IPP agreement in the region, although it was also delayed by regulatory uncertainties.

CIC Energy is developing the so-called Mmamabula energy complex, at the Mmamabula coal field.

This planned complex consists of the Mmamabula energy project, the export coal project and a potential coal-to-hydrocarbons project.

The Mmabula project was to supply electricity to South Africa.

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