| Fri 22 Oct 2010, 13:24 | | IPS - Ipsa Group Plc - Termination of coal contract |
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IPS
IPSA
IPS - Ipsa Group Plc - Termination of coal contract
22 October, 2010
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")
TERMINATION OF COAL CONTRACT
The Board of IPSA Group PLC announces that it has today authorised the
termination of the coal agreement between IPSA`s wholly owned subsidiary, Indwe
Power (Pty) Limited ("IPPL"), and Elitheni Coal (Pty) Limited ("Elitheni"), a
subsidiary of Strategic Natural Resources PLC. The original agreement, which
was announced on 28th October 2008, envisaged that IPPL would purchase
approximately 1,000,000 tonnes of coal per annum for a period of 20 years (20
million tonnes) for use at its power projects under development in the Eastern
Cape. There have, however, been significant delays in Eskom`s Multi-site
Baseload IPP Programme, which in turn have led to delays in achieving off-take
contracts for power from IPSA`s proposed mine mouth power plant at Indwe.
Accordingly, the Board of IPSA has decided that IPPL cannot proceed with the
current coal contract.
IPSA continues to hold an option over a mine mouth site for a coal-fired power
plant at Indwe and intends to pursue power plant development based on clean coal
in the Eastern Cape. Such developments will, however, have to be backed by
bankable off-take agreements. In the meantime IPSA`s decision leaves Elitheni
free to explore other options for the sale of coal for power generation.
For further information contact:
Peter Earl, CEO, IPSA Group PLC +44 (0)20 7793 5615
John Llewellyn-Lloyd / Harry Stockdale, Execution Noble & Company Ltd +44
(0)20 7456 9191
Riaan van Heerden, PSG Capital (Pty) Ltd +27 (0)21 887 9602
Date: 22/10/2010 13:24:00 Produced by the JSE SENS Department.
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