Global Coal Management Plc (formerly Asia Energy PLC)



Overview

GCM Resources plc (GCM) is a London-based resource exploration and development company. Its principal asset is its undeveloped coal deposit in the Phulbari region of Bangladesh, the development of which is awaiting approval from the Government of Bangladesh. It also has investments in other companies with mining interests. The company's shares are quoted on the Alternative Investment Market (AIM). (Ticker code: GCM).

The Phulbari Coal Project is a substantial, world class coal resource that will support a long life, low cost mining operation. It is the only such deposit in Bangladesh that has been subjected to a full Feasibility Study and Environmental and Social Impact Assessment prepared to international standards. In partnership with the Bangladesh Government, civil society and the community, GCM is committed to developing the Phulbari Coal Project to the highest social and environmental standards. By doing this, GCM seeks to maximise the benefits of the Project for both the Company’s shareholders and the people of Bangladesh.

The Company (GCM) under its former name, Asia Energy PLC, was incorporated in England and Wales as a public limited company on 26 September 2003. Asia Energy PLC was admitted to the Alternative Investment Market (AIM) of the London Stock Exchange on 19 April 2004. Through seed capital raising and the subsequent placement of shares, some £14 million was raised.

In November 2005, following submission to the Government of Bangladesh of the Phulbari Coal Project's Feasibility Study and Scheme of Development, the Company placed an additional 7 million shares and raised a further £33 million.

GCM actively reviews investment opportunities in order to broaden its global investment portfolio.

Coal Project facts

■ Energy security and diversity – The Project has a unique role to play in addressing the country’s electricity shortfall as its development will provide the basis for a step change in the country’s electricity generating capacity.
■Regional development – The Project will provide 17,000 jobs (direct and indirect). In addition the development of new industries using the industrial mineral co-products from the mine will create thousands of more jobs. The living conditions of all affected people will be improved and their livelihoods will be restored and in many cases improved. As a result of year round irrigation, improved water quality, improved inputs and improved farming practices it will be possible to produce three crops per year with higher yields than at present.
■Huge economic impact – Phulbari will contribute 1% to Bangladesh’s GDP each year and pay US$7.0 billion in taxes, royalties and service charges to the Government over the life of the Project. The replacement of high sulphur imported coals and other hydrocarbons will have a positive effect on balance of payments and air quality.

In partnership with the Bangladesh Government, civil society and the community, GCM is committed to developing the Phulbari Coal Project to the highest national and international social and environmental standards. By doing this, GCM seeks to maximise the benefits of the Project for both the company’s shareholders and the people of Bangladesh.

Background

Bangladesh is one of the most densely populated countries in the world with some 162 million people living in an area two thirds the size of the United Kingdom or about the size of New York State. Less than one third of its population live in cities while the majority live in rural areas relying on a predominantly subsistence lifestyle. GDP per capita is around US$1,700 (ppp) per annum compared with a world average of US$10,500. Less than half the population have access to electricity. Bangladesh is a country of enormous potential. It has the eighth largest work force in the world and is included in the “Next Eleven” countries that, after the BRICs (Brazil, Russia, India, and China), were identified by Goldman Sachs as having the potential to become the world’s largest economies in the 21st century. It has enjoyed more than 6% economic growth in real terms over the last five years as well as substantial improvements in measures of human development. For example, between 1980 and 2006 life expectancy has improved from 48 years to 63 years and literacy rates have improved from 29% to 53%.

Bangladesh is one of the most climate vulnerable countries in the world with a significant proportion of the population living in remote or ecologically fragile areas such as river islands or cyclone prone coastal areas. Two thirds of the country is less than five metres above sea level making it vulnerable to the predicted effects of climate change.

Although Bangladesh is vulnerable to the effects of climate change, it is not itself a significant emitter of carbon dioxide. Per capita carbon dioxide emissions (0.3t/capita) are substantially below other countries in the region (Pakistan 0.9t/capita, India 1.4t/capita, China 4.9t/capita) which themselves are substantially less than emissions from developed countries (UK 8.9t/capita, USA 18.9t/capita). Even with the addition of the 4,000MW of electricity capacity which Phulbari coal could support, Bangladesh would still be one of the lowest emitters of carbon dioxide in the world, substantially less per capita than its neighbouring countries.


http://www.gcmplc.com/

"

RAB Special Sits continuing to add:


Global Coal Management PLC
11 September 2007


TR-1(i): Notification of major interests in shares

1. Identity of the issuer or the underlying issuer of existing Global Coal Management
shares to which voting rights are attached(ii):
2. Reason for the notification (please tick the appropriate box or boxes)
An acquisition or disposal of voting rights X
An acquisition or disposal of financial instruments which may result in the acquisition of
shares already issued to which voting rights are attached
An event changing the breakdown of voting rights
Other (please specify):
3. Full name of person(s) subject to the notification obligation RAB SPECIAL SITUATIONS (MASTER) FUND
(iii): LTD
4. Full name of shareholder(s) (if different from 3.)(iv): MERGEFIELD 'Shareholder' CREDIT SUISSE
CLIENT NOMINEES (UK) LIMITED
5. Date of the transaction (and date on which the threshold is 07/09/2007
crossed or reached if different)(v):
6. Date on which issuer notified: 11/09/2007
7. Threshold(s) that is/are crossed or reached: 23%
8. Notified details: n/a




A: Voting rights attached to shares
Class/type of Situation previous to Resulting situation after the triggering transaction(vii)
shares the Triggering
transaction (vi)
if possible Number of Number of Number of Number of voting rights % of voting rights
using the ISIN Shares Voting shares ix
CODE Rights Direct Direct x Indirect Direct Indirect
viii xi


ORDINARY 10,643,126 21.81% 11,629,511 11,629,511 n/a 23.83% n/a
SHARES
B: Financial Instruments
Resulting situation after the triggering transaction xii
Type of financial Expiration Exercise/ Conversion Number of voting rights % of voting
instrument date xiii Period/ Date xiv that may be acquired if rights
the instrument is
exercised/ converted.
n/a n/a n/a n/a n/a
Total (A+B)
Number of voting rights % of voting rights


A ONLY 23.83%





9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are
effectively held, if applicable xv:
RAB Capital plc acts as investment manager for RAB SPECIAL SITUATIONS (MASTER) FUND LTD. RAB Capital plc
does not act as custodian for its clients and therefore the shares are held in the nominee name of the
custodian of its clients, which is CREDIT SUISSE CLIENT NOMINEES (UK) LIMITED.



MERGEFIELD 'Note'
Proxy Voting:
10. Name of the proxy holder: n/a
11. Number of voting rights proxy holder will cease to hold: n/a
12. Date on which proxy holder will cease to hold voting rights: n/a
13. Additional information: n/a
14. Contact name: LEGAL TEAM
15. Contact telephone number: 020 7389 7000




Annex Notification Of Major Interests In Shares xvi
A: Identity of the person or legal entity subject to the notification obligation
Full name (including legal form for legal entities) RAB CAPITAL PLC FOR AND ON BEHALF OF MERGEFIELD
'Fund' RAB SPECIAL SITUATIONS (MASTER) FUND LTD
Contact address (registered office for legal entities)

C/O RAB CAPITAL PLC,

1 ADAM STREET,

LONDON WC2N 6LE


Phone number 020 7389 7000
Other useful information (at least legal representative
for legal persons)

B: Identity of the notifier, if applicable xvii
Full name ALL AS ABOVE
Contact address
Phone number
Other useful information (e.g. functional relationship
with the person or legal entity subject to the
notification obligation)

C: Additional information
n/a

Hello Smiler - (from S. Africa) good to see RSS adding.... a man of conviction obviously. As he says, he'll either be right or he'll be wrong!

Hope you & AM are having a good time !! At 90p IMHO worth the risk !! :)

yes i think so Smiler - even cheaper today.... how low can it go!!!!

Fogl going well :)

Petrobangla, BCMCL, CMC Sign Side Letter Deal on Barapukuria Mine
[ Print ]


Coal

EB Report , published 14/9/2007

Page [ 1 ]



Petrobangla, Barapukuria Coal Mining Company Limited and a Chinese Consortium led by CMC have signed a side letter agreement on completion of development work of Barapukuria coal mine.



The side letter agreement was signed on Wednesday so that the consortium finishes incomplete development work of the mine as per the original development agreement signed in 1994, Petrobangla officials said.



When the consortium will finish the development work, BCMCL, a subsidiary of Petrobangla, will issue takeover certificate to the consortium.



The consortium was also given a six-year service contract for producing coal from the field in 2005. But it failed to produce coal as per the contract.



A Petrobangla release said the visiting president of CMC, Tang, assured the government that the consortium would take all out efforts to recover the closed section (1100) of the coal mine which was shut for the second time because of emission of carbon monoxide.



The CMC will purchase a new set of equipment to produce coal as equipment worth millions has remained abandoned at the closed compartment. Petrobangla requested CMC not to charge BCMCL for the equipment.

Bangladesh: Set up Coal-Based Power Plants in Northern Districts

power sector

EB Report , published 15/9/2007

Page [ 1 ]



Speakers in a seminar in Rangpur recently extraction of coal from northern region mines and setting up coal-based power plants to meet the need.



The seminar was organized jointly by Rangpur Chamber of Commerce and Industry (RCCI) and Greater Rangpur Welfare Somiti, Dhaka (Bangladesh) at RCCI conference room.



They urged the government not to pay heed to those who are obstructing extraction of coal from the region.

RCCI president Mostafa Azad Choudhury presided over the seminar while president of Greater Rangpur Welfare Somiti and also former National Board of Revenue (NBR) executive chairman Nazrul Islam moderated it.



Four keynote papers on 'Development of Greater Rangpur and Northern Region: Problems and Potentiality' were presented at the seminar.



Former chairman of Bangladesh Chemical Industries Corporation (BCIC) and former chief engineer of Local Government Engineering Department (LGED) Monwar Hosen suggested in the seminar that the government should set up two urea fertiliser plants in Rangpur or any other places in northern region.



Former chairman of Bangladesh Power Development Board Brig Gen (Rtd) MA Malek and vice-president of Greater Rangpur Welfare Somiti M A Mojid addressed among others in the seminar.

Sunday, September 16, 2007 03:26 PM GMT+06:00

Published On: 2007-09-14

Efficient use can save 800MW electricity: Energy experts
Staff Correspondent

Energy experts at a roundtable yesterday gave energy saving through its efficient use a top priority followed by setting up coal-based power stations in the northern part of the country to meet the increased power demand and ensure energy security.

Terming corruption and mismanagement as the major obstacle for setting up new power plants in public sector, they said the government should provide private sector with finance and other facilities to set up power plants to add more power to national grid.

The roundtable styled 'Energy efficiency: Third fuel for Bangladesh' was organised jointly by Energy and Power, a fortnightly magazine, in association with German Technical Cooperation (GTZ) at the Cirdap auditorium in the city.

"No load shedding would be there if we could save 700MW to 800MW of electricity. Both the engineers and common people should think of how we can save more energy," said Energy Adviser Tapan Chowdhury while speaking as chief guest at the roundtable.

He said a lot of gas is being misused in some industries while there is only 13.5 tcf (trillion cubic feet) of reserve that will hardly continue up to 2012 to 2015.

"The other source of energy is coal, but it is very unfortunate that we could not take any decision on coal yet. If we cannot take a decision, we are going to face serious consequences in future," Tapan added.

Experts will have to make strong recommendations on coal, he said as journalists asked why the government is not taking any decision on it.

Urging all to use energy-efficient bulbs, he said a proposal has been sent to the finance ministry to import energy-saving bulbs.

In the keynote presentation, German Development Cooperation Senior Adviser Dr Khursheed-Ul-Islam said efficient use of power in thermal, electrical and even combined heat and power systems could save around 800MW of electricity.

"This is equivalent to two-power-plant capacities or deferring electric power demand growth for two years," he said, adding that application areas for efficient energy use are domestic, commercial and industrial lighting, industrial motors and power factor improvement.

The other options for future energy security are solar, bio-mass, bio-gas, wind and hydro power, but the penetration of these renewable sources is low with the major barriers being financial, technical and social, said Khursheed, also former consultant of World Bank's First Energy Audit Project.

Prof Nurul Islam of Bangladesh University of Engineering and Technology (Buet) suggested introduction of a course for electrical engineering students on efficient use of energy.

Stressing the need for strengthening the government's regulatory activities to monitor such energy saving issues, he said the NGOs, working on renewable energy projects, often end up their projects due to discontinuation of funding, which ultimately brings no result.

BD Rahmatullah of Rural Electrification Board said Bangladesh is the only country where energy efficiency and conservation are not stressed.

There is 21 percent system loss in the electricity, while a lot of indiscipline is existing in the metering system, he added.

At least 2000MW electricity could be added through efficient use of energy and captive power plants, Rahmatullah said, adding, "We have the crisis in management and thinking."

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Nasir Hossain said the government should have a policy for efficient use of energy as well as encourage the local industries to set up power plants and add to the national grid, making the grid an 'energy super highway'.

Stressing on privatisation in energy sector, he said the worst victims of power crisis are the small and medium enterprises.

Prof Shahnawaz Ahmed and Dr Ijaz Hossain of Buet, Dipal Barua of Grameen Shakti, Mostafizur Rahman of Energy Audit Cell, and Brig Gen Nazrul Hasan of Desa also spoke at the roundtable moderated by Energy and Power Editor Mollah Amjad Hossain and Journalist Farid Hossain of AP.

http://www.thedailystar.net/story.php?nid=3959

Global Coal Mgmnt Holding(s) in Company

RNS Number:9873D
Global Coal Management PLC
17 September 2007


TR-1(i): NOTIFICATION OF MAJOR INTERESTS IN SHARES

1. Identity of the issuer or the underlying issuer of existing Global Coal Management
shares to which voting rights are attached(ii):

2. Reason for the notification (please tick the appropriate box or boxes)

An acquisition or disposal of voting rights X

An acquisition or disposal of financial instruments which may result in the acquisition of
shares already issued to which voting rights are attached

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the notification obligation RAB SPECIAL SITUATIONS (MASTER) FUND
(iii): LTD

4. Full name of shareholder(s) (if different from 3.)(iv): MERGEFIELD "Shareholder" CREDIT SUISSE
CLIENT NOMINEES (UK) LIMITED

5. Date of the transaction (and date on which the threshold is 14/09/2007
crossed or reached if different)(v):

6. Date on which issuer notified: 17/09/2007

7. Threshold(s) that is/are crossed or reached: ABOVE 24%

8. Notified details: n/a




A: Voting rights attached to shares
Class/type of Situation previous to Resulting situation after the triggering transaction(vii)
shares the Triggering
transaction (vi)
if possible Number of Number of Number of Number of voting rights % of voting rights
using the ISIN Shares Voting shares ix
CODE Rights Direct Direct x Indirect Direct Indirect
viii xi


ORDINARY 11,629,511 23.83% 11,754,511 11,754,511 n/a 24.08% n/a
SHARES
B: Financial Instruments
Resulting situation after the triggering transaction xii
Type of financial Expiration Exercise/ Conversion Number of voting rights % of voting
instrument date xiii Period/ Date xiv that may be acquired if rights
the instrument is
exercised/ converted.
n/a n/a n/a n/a n/a


Total (A+B)
Number of voting rights % of voting rights


A ONLY 24.08%





9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable xv:

RAB Capital plc acts as investment manager for RAB SPECIAL SITUATIONS (MASTER)
FUND LTD. RAB Capital plc does not act as custodian for its clients and
therefore the shares are held in the nominee name of the custodian of its
clients, which is CREDIT SUISSE CLIENT NOMINEES (UK) LIMITED.



MERGEFIELD "Note"

Proxy Voting:

10. Name of the proxy holder: n/a

11. Number of voting rights proxy holder will cease to hold: n/a

12. Date on which proxy holder will cease to hold voting rights: n/a

13. Additional information: n/a

14. Contact name: LEGAL TEAM

15. Contact telephone number: 020 7389 7000

Friday, September 21, 2007 02:29 PM GMT+06:00


Metropolitan
Coal Policy
Govt body to visit mine, coal rich areas today
Staff Correspondent


The committee tasked with finalising a coal policy for the country will be visiting today Barapukuria coal mine, Phulbari, Khalashpir, Dighipara and a few other areas that are rich with coal deposits.

The members of the committee, accompanied by the energy secretary, will talk with the officials of Barapukuria Coal Mining Company as well as with the locals of Phulbari, including the ones who have been opposing the coal-mining proposal of Asia Energy, said sources.

On the way, the committee will visit the Dighipara and Khalashpir coal zones, the sources added.

The committee also intends to visit and survey the area of Jamalganj -- the country's biggest coal deposit -- where no visible surface marking is available.

Furthermore, the committee that was formed in June has decided to send two of its members -- Prof Nurul Islam from Bangladesh University of Engineering and Technology (Buet) and Prof Badrul Imam from Geology Department of Dhaka University -- to the upcoming Saarc coal conference to be held in Kolkata in mid-October.

The committee recently resolved a vital debate on the mining method in the draft of national coal policy. While one group of people had been putting pressure on banning the open-pit method of mining in Bangladesh, the other group wanted all mining option to be open for particular mining proposals.

The committee decided that the policy would not restrict any mining method since it depends on technical issues such as geology or hydrology etc. and the government should have the discretionary authority to approve a mining method against each mining proposal.

The committee headed by Prof Abdul Matin Patwari, former vice chancellor of Buet, was formed as the sixth draft version of the national coal policy drew a lot of criticism for being anti-investment and self-contradictory.

The finalisation of the national coal policy is seen as a crucial document for the future of the existing deals with Asia Energy or Hosaf as well as for other offers that are pending government approval.

Coal Policy of Bangladesh Thoughts of the Advisory Committee
Something to say
EB Report , published 23/9/2007

By- Khondkar Abdus Saleque

A section of Bangladesh press has come up with reports that the committee formed by the Care Taker Government has almost finalized their recommendations. They may not recommend for export of steam coal and may not recommend for or against any mining method. However provision may be there to export cooking coal and other by products expected to be mined with coal. In the present situation this possibly is the best that the committee can recommend. There has been no reference however about the limit of Royalty and fiscal incentives those will be offered to the mine developers.

The estimated reserve of coal in our 5 discovered mines that has been printed in the media report is 1168 Million Metric Tons. If all these are to be mined in underground mining method the maximum recovery will be 240 Million Tons while if all could be mined by surface mining it could be 1100 Million tons. Our Patriotic Oil, Gas, Port and Power protection committee wants to ban surface mining. Do they want to let most of the coal buried underground for ever? It is very unfortunate if that is their way of protecting the countries resource. They should rather demand how we can recover the maximum amount of Coal without causing major damage to environment and making appropriate arrangement for rehabilitation of affected people. In a resource constraint country it is a luxury to ban the most economic way of mining. A modern mining method caters from managing all risks and apprehensions those are being propagated. The committee probably is not misguided by their illogical demand.

The geology, the economics, the depth of coal seam will dictate the mining method. No coal policy in any country restricts or specifies any mining methods. If the developer can prove a safe and environmentally friendly mining method after extensive study and evidencing reasons to support their method then there is no reason why it should not be approved. The national interest is supreme. When the nation is desperately starving for energy, when gas supply is getting increasingly uncertain we must not leave behind most of our coal underground. The mine developer must rehabilitate the affected land owners in the best possible way; do everything possible to regenerate their earnings, employ most of them during mine development. The developer must also prove that the mining will not cause any pollution of surface and subsurface mining. The water management must be state of the art technology. Surface mining can not be done in case of deep coal seam. It has also been proved in case of Barapukuria that underground mining in our case is also very risky. We should try to conduct detail feasibility study by internationally accredited consultants before leasing the fields coal at greater depths for mining. Extensive study for Coal Bed Methane may also be carried out.

Now let us discuss the matter of making available coal for power generation. Our present power generation capacity is about 4000 MW and demand is about 5000MW. The Power sector master plan projects a generation requirement of 42000 MW by 2025.Will anyone believe Bangladesh will achieve this ever given our resource constraint. It is highly unlikely this target will be achieved or required .Bangladesh can not sustain a growth rate of 8% for several years. The power demand will peak off at about 30000 MW sometime after 2020.We can not have too many coal plants for its environment unfriendly nature and less efficiency. We should have about 3000 MW generation from Coal. Clean coal technology is still a far cry .If we have too many coal plants the Greenhouse gas emission will create drastic change of our climate. Draughts, Cyclones. Flooding will become regular affair. These with We may still rely on Gas either our own or imported for about 60 % power. Nuclear, Hydro, Solar, Wind, Municipal Wastes should be other options.

Well we have not yet started the mining. We are not yet sure how much coal will be safely recovered. We now desperately need the coal for power generation and in other areas of domestic demand. So no one can think about export. But we will also need lot of money to pay the the IOCs for additional gas if there is any discovery in the offshore, we will need money to purchase enriched uranium, we will need money to pay for any gas import. Once the mining starts we may discover more coal reserve. Coal price is shooting up. If clean coal techniques turn into proven technology the price will shoot up in the world market so in that situation sometime down the line after meeting our requirement and keeping coal reserved for the economic life of coal based power plants if we have surplus there is no harm in exporting if we get good price.

We hope that the coal policy will have sufficient incentives for major and genuine mining companies to explore in Bangladesh. Our own public sector currently does not have any capacity and will take years to grow. Do not misunderstand us. We are no lesser patriots. But we are not blind. Pertobangla in several years could not set up any mining management unit. Most of our mining engineers worked in the gas sector for lack of opportunity in the mining. Those who worked in the mining industry have retired. There is no scope to learn mining in the country. Petrobangla did not take any initiative to create mining professionals In this scenario how do we dream, Coalbangla will be vini, vici, vidi.

The royalty issue is very sensitive. We hope that unreasonable limit will not be there in the policy to discourage the major mining companies. Mining is Bangladesh is not the same in other countries. The mining company will not get any equipment here. All equipments with spares will require to be imported. Specialist technicians are not available, Port facilities, customs are yet to demonstrate integrity and investment friendly attitude. The country risk and political risks are also to be taken into account. Natural calamities are also more frequent. All these make investment in Bangladesh very challenging. So we must not compare ourselves with Indonesia, Malaysia or any other regional countries.

We desperately need coal soon to relieve natural gas from exclusive dependence for power generation. Simultaneous to providing green signal to coal mining initiatives may be taken to set up coal based power plants and other coal based industries in the western region so that when the mines go into commercial production there is already a ready market to consume the coal. This Care taker government has to take all these initiative. Political government for many reasons will hesitate to do that. In Barapukuria mining we must have learned bitter lessons. We do not want any repeat of that.

We look forward for a practical coal policy and like to see mining started soon.

http://www.energybangla.com/article_det.asp?aId=724

Bangladesh: Declare Northern Region as National Coal Zone [ Print ]
Coal
EB Report , published 25/9/2007

Page [ 1 ]

Speakers at a seminar entitled "Development of greater Rangpur and northern Bangladesh: Problems and Prospects", held at Rangpur chamber auditorium on Wednesday the 12th September, demanded declaration of northern region as "National Coal Zone" and formulation and implementation of coal and natural resources based development of the north and western Bangladesh, says a press release

The seminar was jointly organized by Rangpur Chamber of Commerce and Industry and Greater Rangpur Welfare Association, Dhaka. RCCI president Mostafa Azad Chowdhury presided over the seminar while Deputy Commissioner, Rangpur Khondokar Atiar Rahman inaugurated the seminar as chief guest. Greater Rangpur Welfare Association president Md. Nazrul Islam, ndc moderated the seminar. The seminar was attended by business leaders, educationists, bankers, civil society members, NGO and human rights groups.

RCCI Vice president Mostafa Ahmed, former BCIC chairman and former chief engineer, LGED Md. Monowar Hossain Chowdhury, BUET Assistant Professor Mohammed Sohrab Hossain, former chief engineer, Facilities Department engineer Abdul Kader, presented keynote papers on development of the north-expectations and achievements, development of the north and energy perspective, the main energy source gas and the north and role of electricity in the development of greater Rangpur, Dinajpur and the north, and problems and prospects thereof, respectively. Former chairman Bangladesh Power Development Board and REB Brig Gen (Rtd.) MA Malek addressed the seminar as resource person while a good number of distinguished participants took part in the discussion.

The seminar revealed that a reserve of more than two billion tons of quality coal has been discovered in five locations in northern districts. Speakers opined that the traditional development strategy failed to deliver well-proportioned development of the country creating regional disparity. Development of business and industrialization has been greatly impeded due to lack of communication and utility infrastructure in the region.

In a situation of dependence on primitive agriculture and absence of economic activities, people of north, particularly of Greater Rangpur and Dinajpur, have been routinely subjected to so called 'Monga', the seasonal unemployment. Quite reasonably, the people of the north expected quicker extraction of mineral resources and implementation of mineral resource-based development of the undeveloped north. Much expected natural gas pipeline did not extend beyond Bogra, the speakers pointed out.

They said that some vested interested groups are involved in foul plays to create constraint to extraction of coal and natural resources. These groups are identified as brokers of carbon-traders engaged in so called 'carbon emission suppression' (delaying extraction of coal). They strongly criticized the activities of Paribesh Andolon, Oil-Gas-Port Committee, Nagorik Commission and other groups active in frustrating foreign investments in the coal sector

Speakers stressed on immediate extraction of coal and other minerals from the five coal mines. Since the government has identified private investment as vehicle for industrialization and economic development, local and foreign private investment must be encouraged to invest in coal mining that would ensure deployment of resource and technology and would contribute to create backward linkage industries, power generation and distribution, communication network, expansion of trade, generation of employment opportunities in the north-western Bangladesh.

The seminar adopted 16-point recommendations including immediate extraction of coal, leaving technical aspects to experts, stopping campaign against coal, extension of gas pipe line up to Dinajpur via Rangpur and Uttara EPZ, establishment of two fertilizer factories in northern region, development of rail and road communication, formation of Rangpur division consisting of 8 northern districts, establishment of education board at Rangpur, establishment of technical and general universities in Rangpur, arranging special industrial package loan with reduced interest for the north and appropriate river management in the downstream of Teesta barrage to protect all five districts of greater Rangpur from devastation.

http://www.energybangla.com/article_det.asp?aId=725

ADB keen to finance Phulbari coal mine project

High-profile team due next tomorrow

Monday October 01 2007 00:39:10 AM BDT

After a year of stalemate the Phulbari Coal Mine is likely to get momentum as the Asian Development Bank (ADB) has showed keen interest in financing the project, reports UNB.

According official sources, a high profile ADB delegation is arriving in Dhaka on October 2 on a three-day visit to discuss its possible support to the development of the countrys coal sector, particularly the Phulbari Coal Mine project.

ADBs Director General of South Asia Department Kunio Senga will lead the delegation, which is scheduled to call on Chief Advisor Dr. Fakhruddin Ahmed and also hold meeting with the Energy Advisor, Finance Advisor and the government policymakers.

The Phulbari Coal Mine project got stalemate since August last year following agitation by the local people. Developer of the project UK-based Asia Energy submitted US$ 3 billion open-pit development scheme to the government, but no decision has yet made.

ADB source said they were interested in extending support to Bangladeshs energy sector, particularly for development of power, oil, gas and coal.

The team will explore the ways and strategies as to how it could encourage foreign investors to invest in power, gas and coal sector.

The ADB is now providing US$ 109.86 million to build a 240MW plant at Shiddhirganj to ease the electricity demand during the peak hours.

Official sources in Energy Ministry said the ADB support will supplement the government effort to develop the coal sector and set up coal-based power plants considering the countrys future gas and power shortage.

The government has already decided that all the power plants to be set up after 2011 will have to coal-based because inadequate gas reserve. The proven gas reserve is going to be depleted after 2015.

Considering importance of coal, the government is now preparing a coal policy to stimulate investment in this sector.

In a recent interview with UNB, ADB Country Director Hua Du had said they were interested in developing the coal that would ensure future energy security.

She said that Bangladesh urgently need to develop coal sector to provide fuel and the quickest way to do this is to implement some projects like Phulbari.

According to ADB Country Director, Bangladesh need larger independent power producers (IPPs) to supply electricity to the national grid immediately.

At present, about 2,000MW is required to meet the existing demand-supply gap.

Hua Du said the country should plan for 5,000MW to meet the growing demand in 5 years.

She said that coal-based power plants should be explored immediately to reduce pressure on gas reserve while supply of gas has to be ensured through timely exploration of gas.

Mentioning Phulbari Coal Project as the quickest and most effective way to kick start the coal sector, she said it can deliver and affordable energy supply for Bangladesh.

Hua Du observed that the benefit of using the coal for power generation is enormous for the Bangladesh economy.

About the recent debate on open-pit and underground coal mining methods, the ADB Bangladesh chief said, For Phulbari, open pit mining seems to be the best way to maximize coal extraction and deliver abundant coal at affordable prices.

She said in the open-pit mining project there must be comprehensive plans and strategies covering the rehabilitation of the project-affected people.

She said this should include well developed resettlement plan, indigenous peoples development plan, livelihood restoration strategy and public consultation and disclosure plan, and most importantly, their sound implementation with full public disclosure and scrutiny.

For a Better Energy Future of Bangladesh [ Print ]
Something to say
EB Report , published 30/9/2007

Page [ 1 ]

By-Khondkar Abdus Saleque

It has been gathered from the published documents of NBR and Bureau of Statistics that Bangladesh imports only 3-5 lac tons of inferior quality coal annually from India. It cost us about 300 Crore annually. Will anyone believe this unrealistic figure? To run only about 5000 brick fields and meet the part requirement of Barapukuria power plant among others about 3 million tones of coal should be required. Most of these are smuggled in the country through porous border. Sutarkandi, Tamabeel borders of Sylhet are among the coal leakage points. If the import is properly done government can earn significant amount of money through 7.7% duty, 3.0% AIT, 3.0% Infrastructure Development Surcharge and 15% VAT. As bulk of the coal comes illegally dodging the tax net a very powerful syndicate of Customs, Border Security and Corrupt Coal Merchants get benefited at the expense of national interest. On the other hand the burning of inferior quality coal cause serious atmospheric pollution. This lobby is so powerful that it could manage to persuade the erstwhile Finance Minister Mr. Saifur Rahaman in taking positive actions against them. They manipulate tax evasion and take good care of energy sector officials. Once Bangladesh starts coal mining in the most economic way it will not require to import coal. Rather soon we will need to seal our borders and guard against smuggling out of our own resource.

Bangladesh also imports about 3.8 million tones of liquid petroleum every year. The volatile world market of petroleum products make Bangladesh drain out about US$ 1.8-2.0 Billion only on the import bill of Petroleum products. It could be more if CNG use did not expand in recent years. Government has to subsidize the liquid fuel sale in domestic market as the price remains much lower than international market. BPC has already become a white elephant a chronic liability for the government although people working in BPC and Petroleum product marketing companies get illegal benefits from the POL importing syndicates. BPC and EMRD have the monopoly to control POL import. The theft, pilferage associated with POL imports flattens a section of BPC and EMRD bosses.

Extensive expansion of CNG use and Exploration of Coal can minimize the requirement of POL product import to a great extent and thereby save drainage of hard earned foreign exchange. It is unfortunate that our labor force and expatriate Bangladeshis really have to work very hard in abroad to earn money and send home to keep us moving. Our Garment workers work very hard to help earn foreign exchange which we drain through necessary and unnecessary import of Coal and POL leaving our own resources unexploited. Some sections of EMRD officials for their petty personal gains do not aggressively approach to expedite the indigenous energy resource development to reduce import dependence. A section of so-called civil society now works as pawn of the energy mafia. The most pathetic part of the story is a lion share of the petroleum product is smuggled out to India and Myanmar. Syndicate also squeezes additional benefit from pilferage at Chittagong port during lighterage from mother vessel and during loading and unloading of petroleum products at the terminal. There remains substantial deficiency in measurement. This is going on for years and nobody seems to care. Recently a committee has been formed to overview. But will it be able to check and control pilferage?

The purpose of above exercise is to depict the pathetic scenario and to explore the opportunity we are deliberately loosing by not resorting to our most feasible options to cut energy import bills. Question arises why the CNG initiative is not being vigorously pursued? Gas grid now extends from Beanibazar, Sylhet in the North to Kaptai, in the South. It also extends from Aricha, Manikganj in the East to Ishwardy & Bogra in the West. Very soon Rajshai, Jessore, Khustia, Khulna will come under Gas network. Bhola has also gas now which can take care of all the automobiles a plying there if CNG facility is established .We must plan to expand CNG program to cover all the automobiles all over the country soon. All the buses and trucks moving intern district may be converted to CNG, all Government Vehicles in areas already under Gas coverage must be either converted to CNG or the import of Government vehicles should be only NGV in future. BNP Governments initiative to expand CNG was marred by unbridled corruption of the then Energy, Communication and Environment Ministries. If they were fair and honest much could be achieved. BNP MPS, Ministers, Brother and Nephew of Ex PM, Presidents son became owner of CNG refueling stations overnight and monopolized the business. Genuine businessmen were pushed in the back seat. Communication Minister and his deputy reportedly earned billions in the import of CNG driven four stoke baby taxis; Environment Minister reportedly earned billions through import of pollution control devices of diesel driven vehicles. But the expansion of CNG remained a far cry.

ADB funded Dhaka Clean Fuel project basically to expand gas supply network in Dhaka for CNG expansion. GTCL implemented Dhanua Savar spur gas pipe line to augment gas supply, TGTDCL implemented distribution parts of it to increase network pressure and supply. Do not know the status of RPGCL part of it. It had provisions for import of a huge fleet of CNG buses and replaces the pollution emitting buses from the city, set up maintenance workshop and some mother and daughter CNG stations at strategic locations to cover major intercity bus routes. ADB must make an assessment now how much the project objectives have been achieved. The alleged corruption of ex ministers related to CNG program must be fairly investigated. Corruptions were also made in allocation of government land to privileged few for setting up CNG facilities. These must be looked into.

We learnt that CNG driven irrigation pump has been successfully discovered. These must be put in place now to reduce impact on electricity and diesel in the ensuing irrigation season. We also carry on research whether launches and riverine transports as well as railway locomotives can be run by CNG. These will substantially reduce POL import

This write up may give the readers some idea how much we are loosing by not exploring our coal in the proper way. After almost two decades of failed exploration efforts in Barapukuria and spending billions of dollars we have landed in a position when the lone coal based power plant has to rely on imported coal. It is a great shame .The underground mining was never feasible technically and commercially yet this was opted. The mine design, mine operations were never appropriate yet we let it continue. Several mishaps did not teach us lessons we kept on wasting tax payers money. If you go to Barapukuria you will find Tajmahal has been built. Petrobangla and EMRD executives made merry at the expense of national resources. A very powerful local agent of the Chinese company under blessings of Energy Sector Bosses almost made the Barapukuria mining project immune to corruption investigation. Even our civil society does not raise voice against the plundering of resources in Barapukuria. But they oppose the surface mining which is believed to be the most safe and commercially viable option in case of shallow coal seam. Modern mining method ensures proper water management, environment management, relocation and rehabilitation of affected persons with proper compensation and regeneration of the income. We can not dream of coal export in immediate future. So let it out of context. We need coal desperately for our own use. We need several coal fired s power plants. We need it for burning bricks; we need it in steel plants and for boilers in industries. We need coal for domestic use where we can not reach gas. The delay in initiating coal mining may be due to the internecine activities of coal traders and proponents of POL importer syndicate. By not proceeding aggressively for coal mining EMRD is helping the cause of energy mafias and syndicates. We must come out of the self destructive present situation.

It is a humble appeal of the author to Chief Advisor and Energy Advisor to please address the pressing energy issues. Please do everything possible to expand use of CNG, Please start coal mining, take actions to seal borders and check coal smuggling in and POL products smuggling out. Please undertake an authentic enquiry into the chronological development of events in Brapukuria. Please scan the integrity of senior EMRD and Petrobangla executives for their integrity, efficiency and commitment to national causes. Please let out the shares of oil and gas companies in the local stock exchange to expand our capital base and make these companies truly public limited companies. These will bring more accountability and transparency in their operations. All our efforts to improve the energy situation are on the verge of collapsed due to failure in managing pressing energy issues.

http://www.energybangla.com/article_det.asp?aId=734

Smiler, you watching - looks like someone lit the blue touchpaper here as well.

The games a foot ?? Hope Patience has paid off :)

After a year of stalemate the Phulbari Coal Mine is likely to get momentum as the Asian Development Bank (ADB) has showed keen interest in financing the project, reports UNB.

According official sources, a high profile ADB delegation is arriving in Dhaka on October 2 on a three-day visit to discuss its possible support to the development of the countrys coal sector, particularly the Phulbari Coal Mine project.

Coal extraction in Phulbari

Tuesday October 02 2007 13:56:14 PM BDT

Prof. M.Fakhrul Islam, Bangladesh


REF :ADB keen to finance Phulbari coal mine project-High-profile team due next tomorrow

This is a good sign that he government is considering the use of the coal sector for the future enery needs. There is no denying that the future energy demand will skyrocket and there is no option but to go for coal mining . ADB Country director Hua Dua is correct in suggesting the involvement of local people in the development of coal reserves of the area. They have to be resetlled and rehabilitated .

They should be convinced that coal exploration is ultimately to their benefit. Moreover they may be share holders in any activities concerning coal such as distribution selling etc. Another important thing is that the mine area will cover only a few squire miles and the number of people affected will not be very large and they can be easily handled.

The open pit mining will create big deep holes which can be big resevoirs of water for irrigation in the region and beyond. This will create opportunities in its own way.

The dug out rocks and stones etc can be a flourishing business for the local people . This can be used for constructing durable roads, railways houses , As a whole the whole of building industry of the country will be benefited. Any environmental impact will be largely offset by the benefits to the local people. However one important thing is that the control of the whole affairs should be in Bangladesh\'s supervision . We should not forget all industrial activities have environmental impacts and there is always some solutions after study.

Prof. M.Fakhrul Islam
Rajshahi University
Bangladesh

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Still on the up ??