Jindal Group acquires CIC in Botswana

Jindal Group acquires CIC in Botswana

Jindal BVI Limited (JBVI), a subsidiary of steel major Jindal Steel and Power Limited (JSPL) has acquired Canadian listed coal Company CIC Energy Corp. (CIC) for about US$116 million by way of a merger of JBVI and CIC.

Date: 06 September 2012

Jindal Group acquires CIC in Botswana

JSPL’s acquisition of CIC Energy is worth $116 million.

The acquisition will give JSPL access to CIC’s high quality thermal coal resources in SE Botswana

The Minister of Minerals, Energy and Water Resources of Botswana has already approved the change of control from CIC to JBVI.

Jindal BVI Limited (JBVI), a subsidiary of steel major Jindal Steel and Power Limited (JSPL) has acquired Canadian listed coal Company CIC Energy Corp. (CIC) for about US$116 million by way of a merger of JBVI and CIC.

The Minister of Minerals, Energy and Water Resources of Botswana where CIC has its coal mines, has already approved the change of control from CIC to JBVI and all other approvals for the merger have already been granted and the merger certificate was issued on 05 September 2012, marking the completion of the acquisition.

The deal will provide Jindal Africa access to CIC’s high quality thermal coal in Greater Mmamabula coalfield in SE Botswana which is estimated to be 2.4bn tonnes of measured and indicated resources. This will also give Jindal Africa the opportunity to tap the highly lucrative and power deficient South African Development Community (SADC) countries and given the huge resource, will also provide an opportunity to set up a Coal to Hydrocarbons project.

“This acquisition makes Jindal Africa the frontrunner for building a 1200 MW power plant in Botswana for supply of power to South Africa. This further reinforces Jindal’s philosophy in growing the footprint in Africa, developing the projects in the continent and thus creating sustainable job opportunities. ” said Jindal Africa CEO, Mr. Ashish Kumar

About Jindal Africa

Jindal Africa is a part Jindal Steel and Power Limited (JSPL), which in turn is part of the US$17 billion, diversified O.P. Jindal Group. With a turnover of US$ 3.5 billion, this industrial conglomerate is a leading player globally in the steel, power, mining, coal to liquid, oil & gas, and infrastructure sectors. Recently, JSPL has expanded its steel, power and mining businesses to various parts of the world particularly in Asia, Africa and Australia.

Jindal Africa currently is involved in numerous exploration and mining operations in Africa: South Africa (coal and iron ore); Mozambique (coal); Madagascar (limestone); Tanzania (copper) and Zambia (copper).

In Mozambique, our coal project is in an advanced stage, with first production of coal expected later in the year.

Jindal recognises that Africa is endowed with great mineral wealth and hardworking committed people. Its intent is to pass on its inherent knowledge and experience to the continent by enriching lives, creating job opportunities and adding value. Jindal Africa Investments (PTY) Limited, Jindal Africa, 22 Kildoon Road, Bryanston 2021, South Africa, T: + 27 11 706 8420 F: +27 11 706 8244 W: www.jindalafrica.com. Part of Jindal Steel & Power Limited
www.jindalsteelpower. com.

“We come as a foreign entity but we want to work as a local company” - CEO, Mr Ashish Kumar

Issued by:

  • Neeraj Saxena
    Country Head
    Jindal Botswana (Pty) Ltd.
  • 1 Floor, Victoria House,132 Independence Avenue
  • Private Bag 00350, Gaborone, Botswana
  • T- +267 391 1982
  • M- +267 71333586
  • F- +267 391 1986
  • E- neeraj.saxena@jindalafrica.com