Shumba Coal Signs Heads of Agreement with Mulilo for Power Plant Development
March 06 2015 - 9:09AM
Business Wire
The directors of Shumba Coal Ltd ("Shumba" or the "Company")
(BSE:SHU) (SEM:SHU) are pleased to announce the execution of a
Heads of Agreement ("HOA") between the Company and Mulilo Renewable
Project Developments (Pty) Ltd ("Mulilo") for the joint development
of the Mabesekwa Export Independent Power Plant ("MEIPP") at the
Mabesekwa Coal Project to take part in the South African Coal Base
Load IPP programme.
The MEIPP will be a Coal-fired Power Plant with a captive coal
mine. Within a two month period following the signing of the HOA,
the parties intend to enter into a comprehensive Joint Development
Agreement (“JDA”) which shall include detailed conditions of the
Partnership. During this period the parties will only negotiate
exclusively with each other.
Mulilo is an IPP developer and investor which was originally
formed in 2008. Mulilo works closely with project developers,
technology providers, regulators and investors to source and
develop premier energy projects. Mulilo has developed over the last
few years a portfolio of circa 400 MW of grid-connected power
plants under various IPP programs run by the Department of Energy
in South Africa.
Shumba Chairman Alan M. Clegg commented, “The signing of this
HOA with Mulilo is a further landmark development in Shumba
execution of our stated strategy and a further testimony to the
discipline of management in matching our assets and projects with
the best partners under stressed market conditions. Mulilo has a
first class track record of delivery which, matches Shumba culture
and this will I believe now translate into the creation of a new
and strong economic contribution to the Southern African energy
market for sustainable development, while creating strong value for
our shareholders and all stakeholders alike.”
For further information please
visithttp://www.bse.co.bw/docs/Shumba%20Coal%20Announcement%206th%20%20March%202015%20-Final.pdf
ABOUT SHUMBA
Shumba Coal is a Botswana focused local coal mining and energy
Development Company listed on the Botswana Stock Exchange and the
Stock Exchange of Mauritius and has over 260 shareholders. Shumba
Coal intends to develop one or more 300MW or larger power stations
in addition to producing coal for domestic and regional
consumption.
Shumba Coal LtdMashale Phumaphi, Tel: +267 318 60
72Email: phumaphi@shumbacoal.comWeb: www.shumbacoal.comPlot
2780Manong Close, Extension 9P.O.Box 70311GaboroneBotswana