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/

"

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

??????????

Still on the up ??

Morning Smiler. Yes, another sharp rise,. Maybe we will get an RNS sooner than we thought.

Bangladesh: Ice Starts to Melt [ Print ]
Something to say
EB Report , published 8/10/2007

Page [ 1 ]

By-Khondkar.A.Saleque

Finally the ice tends to melt. Bangladesh Government has seriously started thinking about coal mining, announced its intention to give positive thought about the stalled Phulbari Project for which Bangladesh a contract has with Asia Energy Corporation. They carried out extensive survey and exploratory works. They submitted a development plan and was due to get some response as early as early 2006.Bangladesh government defaulted. Rather it allowed some people to fan up agitation by poor and innocent villagers spreading wrong propaganda. These led to unfortunate incidents. Some innocent lives were lost. Unimaginative Government failed to manage the situation. Rajshahi mayor signed a controversial agreement with Gas, Port, and Electricity protection committee. The mining activities got stalled. Government failed to break the dead lock in about two years. The situation triggered very wrong signal to investor community.

Now development partner Asia Development Bank (ADB) has indicated its intention to support the project. Energy advisor has announced that in recent times there has been some positive development in the discussion with AEC. Law ministry has also opined that the agreement signed between Mayor Rajshahi City Corporation and the so called OIL, Gas and Port protection committee which spearheaded the campaign and agitation against AEC and more specifically against the surface mining method has no legal bearing. Energy advisor has also indicated that the decision about Phulbari project and coal mining in other places may be taken after approval of coal policy which is at the final stage. Experts believe that any policy passed post signing of a contract can not have any impact unless the provision is kept in the contract. It is also learnt that the policy may be finalized within November and may be approved by December 07.Well we are hearing this since July. Now we hope it will happen in December.


It goes without saying that Bangladesh required coal mining to happen in the most economic way few years back keeping in view the rapidly dwindling gas supply situation. We neither approached it with positive intent nor took aggressive actions for exploration for gas. Now we have situation where security of supply of gas grid is not expected to be ensured before 2010 at the earliest. Coal for commercial use may also not be available before 2011.What will happen to our gas based economy in the meantime. The agitators who preached all illogical myths and ill conceived propaganda have made serious dent to our energy security. It is ridiculous to think that we have our fortune lying below the ground and we are struggling to produce electricity, industrial output is suffering, investors getting wrong signal. The fortune seekers are feasting through import of poor quality coal from India through legal and illegal means. The so called agitators intentionally or unintentionally played to the hand of the energy mafias and have made major contribution in creating the present diabolic situation of energy.

In the current time of IT boom it is not difficult at all to know about the details of mining methods and their applicability in specific circumstances. We can very easily find out what suits our geography, our geology. Modern mining methods ensure surface mining in the most environment friendly manner. For shallow coal seam it is a proven technology to recover about 95% of coal in place without causing any major harm to environment. It is safe and less costly. Now that ADB is showing interest we may be assured of strict environmental control and involuntary resettlement of the affected people. It can not support any project which does not prove strict Environmental Management control and takes appropriate care of involuntary resettlement. We learned all these while on training at Manila based ADB headquarter. So it is from practical experience.


It is true some people will loose some cultivable land for sometime .The mine area will be progressively reinstated like for like or even better till the last pit is reached which will become a lake of sweet water. The water pumped prior to excavation may be properly used in irrigation. But if they are properly rehabilitated in satellite towns having access to modern amenities of life why should we be so concerned. Do we want the children of poor farmers there to keep on farming? Should not they be offered better opportunity for quality education, better medical care, crop diversification, better job opportunities? Will request EMRD secretary to send some of the persons he relies upon as experts to witness some surface mining in whichever country they want .They can see for themselves how surface and surface water management are so efficiently done. That will remove their imaginary myths. If the environmental issues, resettlement matters are properly taken care and water management is professionally done we must have any concern against surface mining wherever other technical circumstances support. The adjacent area of coal zone every year suffers from Monga around this time of the year. The mine developer must arrange employment for these people along with those directly affected .Once the mining starts the support infrastructures will definitely create job opportunities. Wonder what our so called agitators have done so far for our poor Monga affected poor people. The author is confident if a popular voting is undertaken in Rangpoor and Dinajpoor area people will vote for immediate commencement of mining.

Other issues are export and royalty. Given the present and immediate future demand Bangladesh can not dream about coal export at the moment. WE need at least three to four medium to large capacity coal fired power plants to be setup soon to balance the huge deficit; we need coal for steel and other industries. Do not think one or two coal mines will have enough economic production to create exportable surplus after meeting this entire requirement. But we will definitely need to be more smart and patriotic in our borders. Our high quality coal may leak through porous borders. So we must not be concerned about export for a while. Royalty limit also has to be logical. Bangladesh will not be unique in coal production. We can always compare similar situation and circumstances. No illogical royalty limit will be workable. One very accomplished Bangladeshi turned Australian Citizen Dr. Nafis Ahmed will be available in Bangladesh for the entire month of October to stand beside his eldery parents following death of his sister. If Bangladesh government desires it can take his honest opinion. He is a mining expert and is very respected personality in mining world. His wife Farjana also worked in reputed Australian mining company in Australia. Now she works in ADB at Manila. Energy advisor may take opinion of the couple. We must not remain on ideas and thoughts of persons who do not have first hand knowledge of mining.
We must not delay. We must start mining. All the coal mines may not support surface mining. We may need properly engineered underground mining for some; we may also explore coal bed methane in some mines. We should also think about coal gasification. One of our South African Colleague working here and living with us in the Flinders village worked with Sasol. He always talks about coal liquefaction. Bangladesh must start thinking about these to expand our utilization options. Bangladesh should also encourage sponge iron industry .We should also keep an eye on Clean Coal technology as something in the future the global warming emanating from greenhouse gas emission due to burning of coal will limit coal based power generation option.

Once the ice has started to melt it will start to roll down the slope to beautify the hinter land in not so distant future .Politics must not prevail over economics. We should not be carried away by wild unreasonable politics without bothering the overall economic benefit of the nation. Bangladesh desperately needs coal for fuelling its energy generation. We are in deep crisis .Destructive and unimaginative politics have taken lot of toll. The gap between demand and supply of energy have widened progressively. We have save our industry and commerce from the verge of ruins. A developing country like Bangladesh can not move without dynamic energy supply situation where the energy basket is diverse, where the countrys own resource is exploited to its full potential. We need aggressive energy resource harnessing. Canceling AEC contract at this stage will be self destructive. Will trigger wrong signal to world community of investors. It will be far more prudent if we can tighten some loose knots of the contract through discussion. Let us hope for the best

Asian Development Bank Shows Interest In Funding Global Coals Phulbari Coal Mine Project

By TC Malhotra

After a gap of over a year, Global Coal Managements Phulbari coal mine in Bangladesh seems to getting some momentum with the news that the Asian Development Bank, one of Bangladesh's major development partners, has shown interest in financing the project. A high level ADB team visited Dhaka in the first week of October, to discuss its support for the country's energy sector, and has offered to extend all kinds of financial support for implementing Phulbari which has been stalled for some time as a result of local protests.

"We have both public and private-sector windows we are interested to provide both technical and financial supports and our support should be extended on the basis of the requirement of the project," Kurio Senga, ADB's Director General of the South Asia Department, was quoted by media reports as saying. Senga said that they have been very much satisfied to see that the Bangladesh government is serious about the Phulbari project. Further, he said that the advisors of the caretaker government are looking closely into the matter and a committee is working to prepare the coal policy, which comprises experts, civil-society members and journalists as well.

"Whatever the outcome from the committee, we'll be guided by it to extend our support to implement the project," he said. He observed that the government did not suspend the project but they were taking time to make a decision.

The project has been stalled since August last year following agitation by the anti-open-pit campaigners. It may be recalled that AIM listed Asia Energy conducted a feasibility study and submitted a development scheme under an agreement with government to develop the Phulbari project with open-pit mining methodology. Since then Asia Energy has been subsumed into Global Coal Management and the scheme is still with the government awaiting approval.

After a meeting with the visiting ADB delegation, Bangladesh Finance Adviser Mirza Azizul Islam told the media that coal mining company Asia Energy, which still holds the licence, has expressed its willingness to re-negotiate terms of its contract with the government, but he said that before this re-negotiation the government must decide which contractual terms should be revised. Energy Advisor Tapan Chowdhury admitted that the Asia Energy has given a "soft" proposal for implementing the project, but any negotiation will start on the basis of the new coal policy after it is approved.

Bangladesh doesnt have a long history of coal exploration and available information suggests that Australias BHP was awarded a mineral exploration licence in August 1994 for the north western part of the country. This exploration licence was later assigned by BHP to Asia Energy in 1998 who conducted seismic and drilling operations and estimated a resource 572 million ton of bituminous coal at a depth ranging from 400 feet to 800 feet. On the basis of the field exploration and then evaluation by different groups of consultants, Asia Energy submitted its plan for open- pit mining of Phulbari coal.

But Asia Energys suggestion for open-pit mining methodology started a debate in Bangladesh, which later turned into a protest wave because local people and NGOs fear that use of this methodology would require displacement of more than 470,000 people of Phulbari, Nababganj, Birampur and Parbatipur upazilas, including 8,000 of the indigenous communities. Asia Energy however, predicts the number displaced to be around 50,000. Local NGOs demanded cancellation of the Phulbari coal extraction treaty with the Asia Energy despite the benefits it would bring in terms of jobs and power.

Bangladesh has small coal reserves, and has consumed little coal in the past. Commercial coal production, in fact, did not start until April 2003 with the opening of the Barapukuria coal mine, which is expected to produce one million tonnes of coal per year, principally for electricity generation. Bangladeshs Energy Ministry judges that the country has up to 2.7 billion short tons of high-quality coal reserves and the government has recently promoted the development of coal to ease its reliance on natural gas for power generation. These reserves have not been developed so far due to lack of domestic financing which is why the sector was opened to foreign bidding. A glimmer of hope for Global Coal Management, perhaps.

Global Coal Management PLC
19 October 2007

GLOBAL COAL MANAGEMENT PLC



DIRECTOR'S DEALING





Global Coal Management PLC ('the Company') wishes to advise that Mr. Gerard
Holden, non-executive chairman, and Mr. David Lenigas, a non-executive director
of the Company, have now increased their holdings through purchases of
ordinary shares.



Mr. Holden purchased 20,000 ordinary shares, at a price of 103p on 19 October
2007.



Mr. Holden now holds 46,666 ordinary shares in the Company, which represents
0.10% of the issued share capital of the company. He also continues to hold
200,000 options in the Company at an exercise price of 135p.



Mr. Lenigas purchased 10,000 ordinary shares, at a price of 100p per share and
10,000 ordinary shares, at a price of 102p on 18 October 2007 and 19 October
2007 respectively.



Mr. Lenigas now holds 190,000 ordinary shares in the Company, which represents
0.39% of the issued share capital of the Company. He also continues to hold
180,000 options in the Company at an exercise price of 75p.




19 October 2007

Dhaka, Tuesday October 23 2007



Committee members against export of coal as draft policy on the anvil


FE Report

A panel of experts tasked with finalising the much-debated coal policy has agreed 'conceptually' not to allow export of the mineral, keeping the country's long-term energy security in mind.

The committee members will, however, keep the policy sufficiently flexible, when it comes to the mining method-open pit or underground mining. Rather, it will be decided on the basis of individual cases, several committee members said.

"The policy is being redesigned keeping an eye on the country's energy security. That means exports can be allowed, if only surplus coal is available," a committee member said.

Since its formation, the advisory committee, headed by a former vice chancellor of Bangladesh University of Engineering and Technology (BUET) Abdul Matin Patwari, has had several rounds of meetings, but failed to give the final touch to the coal policy.

"It may require another four or five meetings to give it the final shape," the committee member told the FE Sunday.

He hinted that the policy would be finalised by the end of November.

Sources at the energy division said the government will establish a separate entity to develop and oversee the highly-potential multi-billion-dollar coal sector.

"It's crucial that the sector is developed in an efficient manner so that Bangladesh can attain the Millennium Development Goal," an expert maintained.

The draft policy, formulated by the energy division, has placed top priority on ensuring domestic energy security for at least 50 years and also kept the option of public sector investment in coal-mine development.

The draft has also made it clear that national interest will be given the top priority while attracting foreign direct investment in the coal sector.

"So far as development of the sector is concerned, the public sector will be given priority in the coal policy. However, the government can decide in favour of coal mine development by the private sector to avert any potential energy crisis and ensure energy security in future," the policy maintained.

But a committee member stated that the policy would have the option of public-private partnership for development of the coal sector.

Given the energy security, the policy notes that independent power producers must be encouraged to set up coal-based power stations in the vicinity of coal mines.

The committee members recently concluded a two-day site visit in the northern region on September 21-22 and had extensive talks with stakeholders, it has been learnt.

The immediate past BNP-led alliance government had initiated a move to frame the first ever coal policy and revised it several times, but the issues of coal export, mining method, environment and licensing regime stood in the way of its approval.

In a circular issued on June 21, the present caretaker administration constituted the advisory committee to give their recommendations on the draft coal policy after necessary examination and scrutiny.

"UPSHOT:

-ADB on board
-Govt on board
-70p to +9 in 6 months in 2005
-Corrupt politicians jailed
-Ministry of law cannot cancel o'seas contracts
-Energy Minister in support of coal energy
-Gas runs out in 5 years
-Only new coal power fired stations to be built
-Media support now
-Locals on side
-RAB largest shareholder
-Mittal largest shareholder in RAB
-Mittal commits $2.9 Billion to Bangla Energy
-$300 million ring fenced for coal development
-Institutions still accumulating
-UK govt liasing with Bangla govt
-Bank finance ready
-Coal policy finalised BY THE END OF NOVEMBER
-1 a share now!?
-NPV now 94.5p
-NPV of project 35
-40% rise in coal prices since 2005

With luck 9 again soon ?????????

Bangladesh: Petrobangla to Develop Dighipara Coalfield [ Print ]
Coal
EB Report , published 23/10/2007

Page [ 1 ]

By- Golam Mustofa Sarowar

Petrobangla has been given the responsibility to develop Dighipara coal field in Dinajpur. A letter was given in this regard from the Energy Division. But Petrobangla has yet to receive the license since the countrys coal policy is still being drafted.



Energy Ministry has informed that if they get the license they might look for strategic partners or contractors for exploration and development of the field. A senior official of Energy Division said that although a number of foreign companies have shown interest in this coal field, the Government is reluctant to engage any foreign company.



Out of the five coal-fields that have been discovered in the country, coal extraction is being done only at Boropukuria. The other coal fields include - Phulbari Coal field which was awarded to Asia Energy, Khalashpur Coal and Jamalgang coal field. It should be mentioned that Jamalganj coalfield is situated deep underneath the land, thus it has failed to attract any interested companies to develop it.



Bangladesh has a coal reserve of about 2.5 billion tons in the five coal fields so far discovered, which is equivalent to 53 trillion cubic feet (tcf) of gas. This amount can sustain the countrys demand for about 50 years. On the other hand, the countrys total discovered gas reserve that can be mined is equal to 11 tcf.

Of particular interest was:

"It should be mentioned that Jamalganj coalfield is situated deep underneath the land, thus it has failed to attract any interested companies to develop it."

So that leaves Phulbari and Khalashpur as the only viable choices.

:-)

Tuesday, October 30, 2007 02:13 PM GMT+06:00

Point Counterpoint
The way forward
Zhu Xian And Sandeep Mahajan

Zhu Xian is World Bank Country Director. Sandeep Mahajan is lead author of Bangladesh: Strategy for Sustained Growth, and Senior Economist, South Asia Region, World Bank.

The important bits being:

" World Bank's Bangladesh: Strategy for Sustained Growth report, will require particular attention to: Addressing the burgeoning energy supply constraints;

"STRENGTHENING EXPORT COMPETITIVENESS; improving the skill levels of the labour force; and strengthening law and order."

"However, with the RMG sector now accounting for close to 75% of total exports, DIVERSIFICATION OF THE EXPORT BASE IS IMPORTANT." Coal? ;-)

"a COMMERCIALLY VIABLE ENERGY SECTOR that supports the economy's vast energy needs"

"A well-reasoned national strategy is needed to bring more balance and energy to urban development across the country."

"The fiscal situation is also under some stress due to the perennial problem of low tax mobilisation and the large losses incurred by the energy-sector state-owned enterprises (SOEs), mainly due to under-pricing of energy products in domestic markets, which also undermines the financial positions of the nationalised commercial banks (NCBs) that are directed to finance these losses. Accordingly, cost-reflective pricing of energy products and steadily improving tax mobilisation are needed."

"THE MOST SERIOUS AND IMMEDIATE OF THE INFRASTRUCTURE CONSTRAINTS IS THE WIDESPREAD AND GROWING SHORTAGE OF ELECTRICITY. With over $1.5 billion in new investment needed annually to build utility-scale plants that can catch up with demand"

Dependance on gas for power generation can be reduced by use of nuclear technology in coal resources deve: Tapan

Internet Edition. October 31, 2007, Updated: Bangladesh Time 12:00 AM

Adviser, Tapan Chowdhury in his inaugural speech emphasized on using nuclear technology in coal resources development in the country which will reduce the dependency solely on gas for power generation. To meet the growing energy demand, the coal resources of the country need to be developed in much BROADER scale. The govemment has attached significant IMPORTANCE on coal sector development. In the National Energy Policy, the coal is identified as IMPORTANT component in the primary energy mix.

S. M. Wahid-uz-Zaman, Secretary, Ministry of Science and Information & Communication Technology in his speech said that at present the country is relying on indigenous natural gas for 87 pc of electricity generation. However, the natural gas reserve is depleting faster than previously planned, and beyond 2015 it would be difficult to dedicate natural gas for new power plants. Currently, the country has coal-fired power plant of 250 MW capacity. To increase the share of electricity generation our coal resources NEED to be developed URGENTLY. He hoped that the training course will definitely expand the domain of nuclear technology in various fields including coal and mineral resources development.


http://nation.ittefaq.com/issues/2007/10/31/news0774.htm

Of Interest :

Australian coal prices reach record

By Angela Macdonald-Smith Bloomberg NewsPublished: October 30, 2007

SYDNEY: Energy coal prices at the port of Newcastle, Australia, the world's biggest export harbor for the fuel, rose 1.3 percent to a record on expectations of supply shortages in Asia and a disruption to deliveries from a Queensland State mine.

"It's the expectations that demand continues to outpace supply so the market is in deficit; it's about people's perceptions of what is around the corner," Rory Simington, a senior coal analyst at AME Mineral Economics in Sydney, said of the record price. "We're coming into a period of higher demand, winter is approaching, and people are wondering where the additional supply is going to come from."

Asia Energy keen for Dhaka nod on minePublished: Friday, 2 November, 2007, 01:36 AM Doha Time

DHAKA: London-based miner Asia Energy hopes Bangladesh will soon agree a coal policy that will give the company the green light for a $3bn investment in a major coal mine project, and it defended the planned open pit mine against criticism from environmentalists.
Asia Energy Corp (Bangladesh), wholly-owned by AIM-listed Global Coal Management Plc, said it was waiting for Bangladesh to finalise its policy on the proposed Phulbari mine as this would help tackle energy supply shortages.
The company submitted a plan to the Bangladesh government in 2005 to develop the mine at Phulbari, 350km northwest of Dhaka. The mine would produce 15mn tonnes of coal a year and bring in $7.8bn revenue to the state over its 30-year life, the company said.
We are disappointed over the unnecessary delay that is escalating the project cost, now at more than $3bn, Asia Energy CEO Gary Lye said in an interview yesterday, but he added: We are ready to start work any moment if the government gives the go ahead.
The project was put on hold a year ago - after the company had spent $34mn on site development and feasibility studies - after protests at the site by environmental groups triggered clashes between local residents and police, in which six people were killed and dozens injured.
The protesters said the Phulbari project would displace some 50,000 people and irreparably damage the environment. Several climate experts also supported the protests.
The project is economically, environmentally and socially sustainable, Lye countered. It will generate 17,000 jobs, add electricity to the national grid and produce up to 15mn tonnes of good quality thermal and semi-soft cooking coal a year.
The project will have a 30-year life and give $7.81bn in revenues, taxes and employee wages to the government, he said, adding Asia Energy would deliver coal at an average price of $55 per tonne.
Lye said his company would spend $300mn to resettle those affected by the mine, including building a new town in the Dinajpur district. No one will be relocated without proper resettlement, he said.
He said feasibility studies showed there was 572mn tonnes of high quality coal at the Phulbari project.
Asia Energy initially submitted plans to develop the mine and build a 500 MW coal-fired power plant alongside, at a total cost of $2.5bn.
Given Bangladeshs increasing demand for coal as it shifts to coal-fired power generation, Asia Energy proposed to expand capacity at the power plant in phases up to 1000 MW, pushing up its investment to $3bn.
Experts have said Bangladeshs gas reserves are running out fast, prompting the switch to coal. All future power plants after 2010 will be based on coal. The brick-making industry alone currently consumes around 3mn tonnes of coal a year.
Bangladesh has 13.54tn cubic feet of proven and recoverable gas but is likely to face a shortage by 2011. The countrys five coal-fields, including Phulbari, have current reserves of 2.55bn tonnes, officials have said.
Around 1mn tonnes of coal is needed each year to produce 250 MW of power. The current electricity shortage in the country is around 2,000 MW.
Energy officials say they expect the government to approve a coal policy soon, though there is no clear deadline. The policy could allow for surplus coal to be exported after reserves meet a 50-year demand requirement, an energy ministry official said.
Phulbari coal will also generate export earnings, and reduce, or even eliminate, imports of coal, Lye said.Reuters

Thanks for all this info, Smiler-o; very helpful.

; )

If they can agree a coal policy that will give the company the green light for a $3bn investment in a major coal mine project, I would think we would see a x5 in a short time ! and will not see this level again for a while, heres hoping :)

Case against Khaleda Zia meritless : ACC

Dhaka, Oct 26: Bangladesh Anti-Corruption Commission (ACC), in its preliminary inquiry, found the allegations against detained former Prime Minister Khaleda Zia regarding two graft cases have \'\'no merit\'\'.
The anti-graft body decided not to take into cognisance the charges against Khaleda Zia regarding the compensation for Magurchhara gas field blow-out and leasing out Phulbari coal zone to Asia Energy.

\'\'As enough documents and evidence were not found for preparing a first information report (FIR) against the former Prime minister, the inquiry officer in his report suggested not to proceed further in this regard,\'\' ACC Secretary Mukhles Ur Rahman at a press briefing at the ACC headquarters said yesterday.

ACC Deputy Assistant Director Farid Uddin Ahmed submitted the report before Eid-ul-Fitr, saying no evidence or information was found to prove the allegations brought against Khaleda, the Daily Star reported.

\'\'The commission does not proceed with allegations lacking merit,\'\' the ACC secretary added.

It was alleged that Khaleda played \'\'dubious\'\' roles in realising the compensation for the Magurchhara blow-out caused by negligence of US company Occidental in 1997 and leasing out Phulbari coal zone to Asia Energy. Her actions in these matters violated the law and the country incurred huge financial losses at the expense of benefiting a few individuals.

According to an investigation report on the Magurchhara blow-out, awarding of the gas blocks to Occidental itself was highly controversial. The blow-out on June 14, 1997 caused a loss of Tk 3,900 crore.

The ACC is also investigating into allegations of awarding gas fields to Niko Resources involving both the Bangladesh Nationalist Party Chairperson and Awami League Chief Sheikh Hasina. The commission is likely to publish the investigation report in November.



All positive news and things look to be falling in to place quickly now with luck :)

EnergyBangla today ........ Sounds like the policy will be non commital enough to allow mining method / Export to be negotiated within specific contracts. The way to go for me, sounds positive ....... I like the last paragraph ....

The national coal committee working on the draft coal policy Saturday said it would not suggest anything that goes against the country`s interest. It suggested a limited export of coal after ensuring the country`s 50 years energy security. It has left the issue of coal export to a future committee to be set up under the coal sector master plan, to be adopted soon.

The committee held a meeting Saturday to discuss some issues of the draft coal policy. As a huge investment is involved in coal sector the committee might suggest the government to consider the coal export issue prudently.

About the method for development of the coal field former BUET vice-chancellor Abdul Matin Patwari and president of the committee told the meeting that the mining method should match with the consumption requirement of the country`s coal industry.

The committee observed that the total amount of the country`s coal reserve is needed to produce electricity in future, as gas would be exhausted by 2015 if new discovery is not made. So it suggested not going for coal export against the interest of people as people are the real owner of the country`s natural resources. At the same time there should be some room for the investors who will develop the field.

`We want to make a level playing ground for the investors, which would be public-private and foreign company`, Patwary said.

The country`s renowned mining expert Md. Mosharrof Hussain, former chairman of Petrobangla told the meeting that both the open pit and underground method has some limitations. He suggested for underground mining in Barapukuria considering the geological factors such as layer of coal, water and other parameters, which are totally different in Barapukuria. Mosharrof urged the committee to go for open pit mining at Phulbari coal field as they found in Barapukuria underground mining method did not work properly.