| Fri 9 Oct 2009, 11:00 | | IPS - IPSA Group Plc - IPSA Clean Coal Project Launch With Power Plant Site |
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IPS
IPSA
IPS - IPSA Group Plc - IPSA Clean Coal Project Launch With Power Plant Site
Agreement And Start Of Environmental Approval Process
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code IPSA ISIN GB00BOCJ3F01
JSE Share Code IPS ISIN GB00BOCJ3F01
("IPSA" or "the company")
IPSA CLEAN COAL PROJECT LAUNCH WITH POWER PLANT SITE AGREEMENT AND START OF
ENVIRONMENTAL APPROVAL PROCESS
IPSA Group PLC today announces that it has taken back ownership of 100 per
cent of Elitheni Clean Coal Holdings Limited ("ECCH") and has entered into an
option agreement for the purchase of a site on which it intends to construct
the first phase of its mine mouth power project in South Africa`s Eastern Cape
province.
On 28th November 2007 IPSA announced the sale of a 50 per cent interest in
ECCH (the "Sale Shares") to Exodus Africa LLC, for a premium of USD5 million.
Receipt of the sale proceeds was secured by way of a first charge over the
interest in ECCH. Following expiry of the agreed term and payment not being
received, IPSA has exercised its rights and taken back ownership of the sale
shares and ECCH is once again a wholly-owned subsidiary of IPSA.
ECCH has entered into the option agreement to purchase the land, which is
adjacent to the Elitheni mine as well as abutting the railway line which runs
from Indwe to East London. ECCH has appointed Savannah Environmental (Pty)
Ltd ("Savannah") to perform the initial phases of the environmental impact
assessment work (the "EIA"). Savannah will commence the EIA in November.
IPSA has identified potential suppliers of circulating fluidised bed boilers
and turbines for the project. Funding for the equipment is expected to be
provided under an export guarantee financing package.
IPSA intends to pursue the clean coal expansion at Indwe based on private
power purchase agreements following the announcement by Eskom that it has put
on hold its process for tendering Power Purchasing Agreements with independent
power producers. With power shortages now being anticipated once more in
South Africa from the end of 2009, IPSA is looking to come to agreement with
large power users. Eskom has already announced the introduction of punitive
tariffs of over ZAR 2,000 per MWh for users who fail to cut their consumption
to 10 per cent below their usage levels of 2008.
In total IPSA intends to develop up to 1,000 MW of clean coal power plant
capacity throughout the Eastern Cape between East London and Port Elizabeth.
IPSA is the owner/operator of South Africa`s first independent power plant
(IPP), the Newcastle Cogeneration gas-fired power plant in KwaZulu Natal. The
announcement of further coal fired expansion using state of the art
circulating fluidised bed (CFB) technology has been taken against a background
of worsening power shortages in South Africa.
09 October 2009
For further information contact:
Peter Earl, CEO, IPSA Group PLC: +44 (0)20 7793 5615
Elizabeth Shaw, COO, IPSA Group +44 (0)20 7793 5615
PLC:
John Llewellyn-Lloyd / Sunil +44 (0)20 7763 2200
Sanikop, Noble & Company Ltd:
Dino Theodorou, PSG Capital (Pty.) +27 11 797 8400
Limited:
or visit IPSA`s website:
www.ipsagroup.co.uk
Date: 09/10/2009 11:00:01 Produced by the JSE SENS Department.
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