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Thursday, February 24, 2011

CIC Energy's buyout under threat after arbitration notice

CIC Energy Corp said its partner in a power project in Botswana filed a notice of arbitration over a power purchase and a coal supply agreement, potentially jeopardizing the Canadian coal miner's buyout deal with an Indian power utility. Shares of CIC, whose buyout by JSW Energy Ltd is set to close on Monday, crashed 35 percent to C$3.66 on Thursday afternoon on the Toronto Stock Exchange. They were halted in the morning session. In August, CIC and GCL Botswana signed an agreement for a 300 megawatt power station and an associated coal mine that would be built at CIC's Mmamabula coalfield in Botswana.