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/

"

Indeed, here's hoping IMO 70/80P WELL WORTH THE RISK !!

Coal policy soon: finance adviser
Bangladesh Sangbad Sangstha . Dhaka
The adviser for finance and planning, AB Mirza M Azizul Islam, on Monday said the coal policy would be announced soon.
We should not remain poor keeping energy under the soil. So, the coal must be extracted, the adviser said while addressing a seminar on development of northern region: problems and solution at the National Press Club in the city.
Advisory editor of the Dainik Ittefaq Akhtar Ul Alam, chief adviser of ATN Bangla Saiful Bari, editor of the daily Naya Diganta Alamgir Mohiuddin and founder president of North Bengal Journalists Forum Mokarram Hossain addressed the seminar as special guests.
Former president of the Dhaka Reporters Unity Shafiqul Karim, NBJF senior vice-president Modabber Hossain, general secretary Mufdi Ahmed, presidents and general secretaries of some Press Clubs of the northern districts, among others, also spoke.
President of the NBJF MA Aziz, who presented a keynote paper on the subject, presided over the seminar.
The finance adviser said the regional disparity is a threat to the national unity and the government is aware of it. To remove the regional disparity, he said, the government formed a committee headed by the planning secretary. After getting recommendations, steps will be taken to remove the disparity, he added.
Azizul Islam also said the government has taken an initiative to make the Ruppur power plant functional besides tapping various natural resources in the northern region.
As the scope for higher education in the region is not enough, he said, more educational institutions should be established for creating opportunities for the higher and technical educations.
The adviser called upon entrepreneurs to invest in the export processing zones in the northern region to help ensure balanced development of the country.
The northern region is facing power and gas problems, Azizul Islam said, adding that infrastructure should be developed for rapid industrialisation in the region.

Of Interest :

http://www.commodityonline.com/news/topstory/newsdetails.php?id=3868

Indian coal demand fuels global price rise
Commodity Online
NEW DELHI: Indias energy ambitions are pushing global coal prices. Indias import of coal from South Africa is expected to go up big time in the coming days.

According to reports, South Africas Richards Bay Coal Terminal, the worlds biggest coal export facility, will be shipping huge quantity of coal to India this year, causing a price rice across the globe.

India has become the major importer now and the increased demand from India has lifted the prices in the international market.

Richards Bay Coal Terminal shipped 7.3 million tonnes to India in the first 10 months, compared with 300,000 tonnes for the whole of last year.

It may go up by another 2 million tonnes before the end of the year.

Benchmark prices for thermal coal, used in power plants, have reached a record in Australia, South Africa and Europe in the last three weeks.

According to Sushil Kumar Shinde, Union power minister, India will add 78,755 MW of capacity in the 11th Plan period ending in 2012.

According to experts, India is the market the world is looking at. Richards Bay, which has about 3.5 million tonnes of coal stockpiled at the moment, is owned by mining companies including BHP Billiton and Anglo American.

The jump in prices is encouraging European utilities to buy supplies from the US. The power producers are paying more for the shipping than for the coal.

Additional demand is also coming from Japan and South Korea.
More than a quarter of western Europes thermal coal is shipped from Richards Bay, which reported total shipments of 66.5 million tonnes last year. Exports through October this year were 53.8 million tonnes.

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http://www.thedailystar.net/story.php?nid=14045


Mine character should decide mining method
Coal policy reviewers suggest
Sharier Khan

Working against its deadline of December 5, the committee on finalising the coal policy resolved that adopting open-pit or underground mining method should be left to technicalities of a particular project and coal resources should be primarily dedicated to power generation.

The committee that has held 16 meetings till yesterday since last July, is currently trying to resolve whether the royalty over coal development should be raised from 5-6 percent to a higher number, sources said.

Even though initially the committee faced opposing views about allowing open-pit mining, which enables huge extraction of coal compared to underground mining method. But as discussions cast light into the grim energy supply scenario of the future, the members more or less agreed to leave the matter to the technical viability of such mining.

Headed by Ex-vice-chancellor of Bangladesh University of Engineering and Technology (Buet) Prof Abdul Matin Patwari, the committee also feels that the government, through Petrobangla and private partnership, may spearhead one such open-pit mine as a test.

The committee believes a quick action is required to tap the coal resources as the country will face huge energy crisis from 2015.

The draft policy says if Bangladesh's gross domestic product (GDP) remains as low as 5.5 percent up to 2025, the country will need to add 19000 megawatt (MW) of additional power and if the GDP is as high as eight percent, it would require 41000MW power. However, Petrobangla said production of gas, which has been the key source for power generation, will start to decline from 2011. This is where the country's coal should play a role.

The draft coal policy said to meet its power demands in a GDP growth rate scenario of 5.5 percent, Bangladesh will need 136 million tonnes of coal up to 2025. If the GDP rate is eight percent then Bangladesh will need 450 million tonnes of coal.

The draft says that the country's existing four discovered coalfields of Barapukuria, Phulbari, Khalashpir and Dighipara can meet this need until 2030 or thereabout.

The country's lone coalmine is the Barapukuria underground mine, which is now producing around half a million tonnes of coal a year. The troubled mine may be able to produce up to one million tonne a year in a best-case scenario.

The committee was formed in June as the sixth draft version of a national coal policy drew a lot of criticism for being anti-investment and self-contradictory. It held its first meeting one month after its formation.

The 10-member committee that held dialogues with various stakeholders and opinion leaders stressed the need to have a national coal body like "Coal Bangla" that would lead coal ventures in the country.

Last week the committee had long discussions on the royalty issue. The present legal frame work demands six percent royalty on coal production from an open-pit mine, and five percent from an underground mine. It was long felt that this rate, fixed decades ago, has become irrelevant, as the global energy prices are at an all-time high.

The draft policy sought to increase this rate under a certain formula that can push the royalty beyond 20 percent in the present global coal market context. Potential investors and the Asia Energy have been opposing the idea saying that such royalty rates, added with corporate tax, will turn any coal venture into a failed effort.

In this regard, the committee assigned one of its members to gather data on global royalty rate trend. The data tabled last week showed that worldwide seven percent is the highest royalty rate. Any rate beyond that can make the coal production price too costly.

The committee also argued that increasing the royalty would be also applicable for the government-owned Barapukuria coalmine, which is unable to properly pay its five percent royalty. Earlier, the committee made a visit to that coalmine.

The committee last week also invited Asia Energy chief Gary Lye to hear his opinions on several issues, including exports, which is one of the main focuses of Asia Energy's Phulbari coalmine development scheme. The controversial company proposed to produce 15 million tonnes of coal a year from an open-pit mine in Phulbari that has 572 million tonnes of coal.

Lye told the committee that the company was interested in a market that would secure the return of its investment. Asia Energy would not be interested to export, if the local market can absorb the production.

According to Lye's written statement, Asia Energy says that it already sees a market of 12 million tonnes of coal a year. The Asia Energy had proposed to set up a 1,000MW power plant, which would demand three million tonnes of coal a year. Plus, the country's brick kilns demand around three million tonnes. Brickette (packed coal used for cooking and domestic use) industry can cater for household demands of another three million tonnes. And if the government okays an Asian Development Bank (ADB) proposal to set up another power plant, then another three million tonnes of coal can be sold.

Apart from this 12-million-tonne market, an investor friendly environment would encourage more power plants, which can consume the remaining coal of Phulbari's production, Lye said.

He, however, added that about 25 percent of the coal of Phulbari was high quality coking coal, which is used in steel industry and has very high price in the international market. Until Bangladesh has its steel industry, this coal should be exported instead of using it in brick kiln, he said.

Global Coal Mgmnt Holding(s) in Company

RNS Number:1749J
Global Coal Management PLC
04 December 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): LIMITED

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 30/11/2007
crossed or reached if different)(v):

6. Date on which issuer notified: 03/12/2007

7. Threshold(s) that is/are crossed or reached: 25%

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 11,754,511 24.08% 12,671,303 12,671,303 n/a 25.96% 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

12,671,303 25.96%





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 LIMITED. 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) MERGEFIELD "Fund" RAB SPECIAL SITUATIONS
(MASTER) FUND LIMITED
Contact address (registered office for legal entities)

C/O RAB CAPITAL PLC,

1 ADAM STREET,

LONDON WC2N 6LE

RAB topping up smiler..... good to see a man with conviction!

Light at the end if the tunnel I hope !!

would be nice..... especially for all the long term holders, time will tell, but seems like there is some progress.

A big 127k buy today someone is confident ?

http://www.energybangla.com/article_det.asp?aId=849

BEIJING (XFN-ASIA) - China's coal demand is expected to rise 6 to 8 pct next
year, driven by its robust economy and expanded power generation, the China Coal
Industry Association said.
The association said China will be a net coal importer through most of 2008.
This is mainly due to high demand from power plants in China's eastern and
southern provinces.
Supplies of coking coal, which is used by steel companies, are also expected
to tighten in 2008, leading to price rises of 15 to 20 pct, it said.
kelly.zang@xfn.com

at last up we go !! positive vibes from AGM ! From what I hear negotiations are progrssing well and are rational and should lead to an agreement in the next few weeks on the coal policy

By- Khondkar Abdus Saleque 07/12/2007

Bangladesh has a Twenty- Twenty vision for supplying power to its entire citizen. The vision was adopted in 2000. 7 years have elapsed since then. In end 2007 the official figure will show Bangladesh has achieved power supply to about 35%.But if you seriously audit it may not be more than 30% who have access to quality electricity. Mere extending power distribution network and connecting consumers mean nothing unless uninterrupted power at stable voltage can be ensured.4-6 hours load shedding of connected consumers do not mean we have achieved any mentionable target as yet.



If we seriously analyze the system we have to audit our generation, transmission, distribution system or in fact all segment of power sector. Assured fuel supply, choice of fuel and their availability will form a significant part of the discussion. This very important issue of national life was recently discussed in a roundtable conference held in Dhaka moderated by the Editor of a leading English Daily. For the sake of discussion some reference can be drawn from the discussion of the seminar.



Our present effective power generation capacity is about 4000MW per day against a suppressed demand of 5200MW. Our dilapidated power transmission and distribution system can not handle more. There is about 1200MW captive power generation capacity much of which remain unutilized. Many of the generation units at Ashuganj, Ghorashal, Siddhirganj, and Shikalbaha have long outlived their effective economic life. In many countries of the world these plants would have been retired long time back and replaced with modern fuel efficient plants. But it did not happen for us. We spent millions in necessary or sometimes unnecessary repair, maintenance and overhauling .These have now become essential nuisance. If these run for few weeks these remain inoperative rest of the time. So these are mostly unreliable. So it is not wise to count these when making plan for future. Power sector master plan identified several power plants for priority implementation. But most of these did not take off for many reasons. It will not be out of place to discuss these reasons here.



It is not still clearly understood why power division and energy division were separated in MOEMR sometime during Awami League Government Rule from 1996-2001.The coordination between the two divisions fell apart since then. This among others is one of the main reasons for the current crisis. Natural Gas still accounts for more than 90% of our power generation and about 40% of our gas is utilized for power. But lack of coordination between power and energy divisions have resulted in situation when power load centers do not have required gas transmission facilities and future potential power plants locations require substantial gas transmission infrastructure. Moreover very ineffective and non professional gas sector management failed to address the critical issues of gas sector development in time to comfort the situation. Consequently substantial volume of gas remains stranded in the Sylhet region while power plants in Chittagong and Ghorashal areas are struggling for gas supply.



The constraints of power supply to Ghorashal are known to all. Luckily the Ghorashal Fertilizer factory is shut down now. This has allowed Ghorashal plant to get more gas from the grid. But the situation will again become critical when UFFG comes back into operation. To comfort Ghorashal Power hub a dedicated 20 OD pipeline may be built from Monohardi as soon as possible.



The situation of Chittagong will continue to remain critical till additional gas supply to Chitagong is ensured. The BGSL transmission system was developed in early eighties with a definite vision. The 24 OD Bakhrabad Chittagong Transmission pipeline at that time attracted lot of criticism from so called energy experts. This pipeline at MAOP of 960 PSIG was designed to transport 350 MMCFD. In 25 years since then Chittagong market has now grown to about this demand but system struggles to supply this gas. In the beginning Bakhrabad Gas field was thought to be lone supplier. 5 wells drilled initially were targeted to supply gas to South East Bangladesh including Chittagong.Later, Feni Gas field was included in the loop. The operation of Bakhrabad Gas field was very much injudicious at the early stages. No reservoir management philosophy was followed. Wells desigened for 20MMCFD were made to produce 30-35 MMCFD causing extensive damage to reservoir pay sand structure. Three more wells were drilled in the major pay sand J in very close location. These were all professional crimes of Petrobangla management ironically dominated by incompetent Geologists. Bakhrabad gas field could continue delivering about 100-120MMCFD even now if it was not made to flow at the rate of 190-200MCFD at some stages in 1989-90.Its not that experts did not warn the authority. Reservoir expert IKM made specific recommendations .Countrys own expert Late Quazi Shaidur Rahamn was very vocal. But everything was done to secure gas supply for KAFCO which signed a controversial gas supply contract with BGSL.The Bakhrabad Gas fields production disaster not only caused massive damage to reservoir and subsurface as well as surface facilities of the field but it also flooded the transmission pipelines from the field with condensate water and sludge. This required massive on stream pigging operation taking lot of risks. The gas supply constraints led to suspension of gas supply to major consumers in Chittagong in 1996-97 till Ashuganj- Bakhrabad Gas line was built and gas for Chittagong was made available from National gas Grid. Later on in late nineties Shangu offshore came on stream as a blessing for Chittagong area. But here again we did not learn lesson from Bakhrabad Disasater.The PSC operator of Shangu was allowed to produce at much higher rate causing damage to reservoir. Consequently the production sharply declined. The gas field which could produce @140MMCFD for many years were made to produce @180MMCFD.This has now led to a declined production of 65MMCFD and progressively going down. For this situation in Shangu it now requires additional gas diversion from national grid through Bakhrabad Gas field but the required augmentation works of additional gas diversion have not been done over the years. Fortunately the compressor station at Bakhrabad gas field is operational now otherwise matters could be still worse. The original design concept of BakhrabadChittagong pipeline provided for a compressor station at Feni to augment the capacity to 500MMCFD. This can still do that. But possibly the pipeline is seriously eroded and corroded by now due to transmission of wet and dirty gas from Bakhrabad gas field. The section from Feni to Chittagong may not support the increased velocity and pressure. This can only be checked with intelligent pigging .But best option would be to build a loop line from Feni to Chittagong along with pipeline compressor at Feni.The suction side may not be a problem .But eventually the loop should be extended to Bakhrabad or to Brahmanbaira.The present situation can not support any new gas based power plant in Chittagong area till gas supply is shorted out. The ongoing drilling operation at Magnama may bring some good news. But gas from this prospect may not be available before 2010 at the earliest. The other efforts at tiny Semutang and Begumganj may not bring much comfort. Additional gas supply from national grid will require compressor stations at Muchai and Ashuganj. These may not be on stream before 2011.Government is not much focused on gas from Myanmar at this stage it seems. Situation in Myanmar is not also supportive. Gas from deep water prospect is also a far cry.



People possibly do not have correct vision about our proven reserve running out too soon. They can not be blamed also. There is no reliable reservoir study information. All are educated guess. What is our proven reserve? You talk to three different experts .You will get three different figures. Even the major gas fields like Titas, Habiganj, Kaillastilla, and Bakhrabad did not have any serious reservoir studies. 3D seismic studies will only be carried out in near future. Can guarantee, our concept of our proven gas reserve will dramatically change following 3D seismic of major fields. So till such time we must not create panic. Our gas will not be running out so soon. But we must run our fields very professionally with right professionals. These are not everyones piece of cake.



Energy sector failed to reach gas to Khulna region despite having substantial demand and availability of gas in Shabajpoor gas field in the region. UNOCAL proposed to implement WRIP in 2000.The proposal included development of the field and construction of Shabajpoor to Dighalia Gas transmission pipeline and power plants in Bhola, Barishal and Khulna.UNOCAL proposal was not considered for approval. The author do not like to open that chapter.Bapez x was given responsibility to develop Shabazpoor.But unfortunately in 7 years since then we could not even set up a gas based power plant in Bhola. If this could be done the recent power crisis following the cyclone devastation could be avoided. One only hopes the ADB assisted GSDP project will be implemented soon and gas is transported to Greater Khulna Division as scheduled.



Now let us discuss other fuel options. Bangladesh is believed to have substantial coal reserve. But in several decades our only success in Barapukuria. Inappropriate mining method and poor management of mining has made this a near disaster. Hundreds of crores have been spent to recover a maximum of 10% of coal in place. No other mines are under exploitation now.Phulbari is potentially large mine .The coal is lying at a shallow depth. After extensive feasibility Asia Energy has proposed surface mining method. But our economist and environmentalist have agitated against surface mining and AEC.Their agitation triggered violence and suspended mining. Even CTG remains confused. The AEC proposal still hibernating. A high-powered committee having no mining expert is examining the draft coal mining policy for months. A poor country like Bangladesh having precious natural resources can not remain hostage to myths and unfounded apprehensions. We need to explore and exploit our natural resources in the most optimum method. The coal must be mined without further delay. It is sheer irony that our policy makers are contemplating import coal based power plant leaving substantial coal underground. Some people seems to have taken sole agency of patriotism .They do not listen to logic .They do not understand technology has advanced very far than the imagination of our so called experts. Our coal must be made available to set up coal based power plants to create diversity in fuel basket. About 4000MW coal based power in the next 10 years will lead us to power for all by 2020.It may be AEC or any other company but surface mining must be the mining method in case of shallow coal seams.



Generation alone will not solve problem. Bangladesh also needs substantial investment in power transmission and distribution segment. New power transmission grid is required to supplement and expand the existing grid. New transmission grid is required from Sylhet region where present stranded gas can support early power generation. If we have surplus coal based power plants in the next decade in the Western parts of Bangladesh we may need a second east west inter connector. If Government can not fund these PGCB may let out shares in local stock exchange to raise capital. Private sector may also be allowed to invest in power transmission. PGCB may still remain operator. Bangladesh must also aggressively interact with neighbors for setting up regional power grid. Our peak and off peak demand vary over large extent. We may trade power at off peak when we achieve surplus. But our priority must be directed to achieve self sufficiency.



We must come out of default culture. In developed country no one can escape without paying utility bills. For few defaulters mass suffer,. Strong public opinion must be created against energy defaulters National ID may be used to detect the defaulters. Massive drive against defaulters and energy thieves may improve system loss and accounts receivables .Business leaders must help the moves.



All the energy sector activities must be very transparent. The identified energy sector mafias must get exemplary punishment for polluting and corrupting the sector so that in future no one dares to indulge in corruption. Future governments must realize that access to power like Food, Shelter, and Medicare is the fundamental constitutional right of the people. Major political parties in their election agenda must declare clear vision of energy issues before election. BERC must be allowed to play its role for regulating energy business. Energy journalists must play its role without fear or favor of anybody. Bangladesh does not want mushroom growth of Khamba business like power mafias any more.



Bangladesh may not achieve the target of power for all by 2020.But there is no harm in having such target .Without target and vision nothing can be achieved. But we need a road map to achieve it. If we remain committed, fair and honest the target may be deferred a little bit say 2030 but whatever we do we must do with professional excellence and commitment. Only line professionals should be listened to in making decisions .Other so called academic experts must not get priority



Bangladesh economy will soon face serious crisis if the power situation is not sorted out. Our export commodities will loose competitive edge. Importers will loose confidence. Investors will loose incentive. Bangladesh will never be able to achieve the desired economic growth to alleviate poverty and will drift way from Millennium development goal.

Of Interest:

Coal prices to hike 10% next year
By Du Xiaoli (chinadaily.com.cn)
Updated: 2007-12-18 15:23


Key contracts of coal for electricity generation for delivery in 2008 have been signed and major prices increased by 30-40 yuan ($4.06-5.42) per ton, up around 10 percent year on year, according to China Coal Transport and Distribution Association, Shanghai Securities News reported.


The volume of key coal supply contracts reached 888 million tons as of 5:30 pm yesterday, including 628 million tons of coal for electricity generation.


The hike will drive up electricity prices in tandem, but the National Development and Reform Commission is reluctant to mention electricity price hikes due to concerns on exacerbating inflation.


Insiders attribute the price hikes to tighter coal supply, global crude oil price rises and costs.


Electricity firms often propose an electricity price increase when price of coal for electricity generation rises to pass the increased costs onto their consumers.


According to securities analysts, listed coal firms will have better financial results in 2008 because of the key contract price hike. The power industry may face larger cost pressures because it is still unknown whether the government will peg electricity prices to coal prices.


http://www.chinadaily.com.cn/bizchina/2007-12/18/content_6330079.htm

http://www.energybangla.com/article_det.asp?aId=854

Bangladesh Coal Policy – Ice has Melted

EB Report , published 20/12/2007





The more poignant parts:Too Long to post !

As a self respecting nation we desperately need well equipped Bangladeshi line professional to mange the mining activities and actively participate .But to do it in a meaningful way it will take at least 5-6 years to at least to organize our domestic capability. Till such time we must have to rely on foreign experts and ensure appropriate technology transfer.

Now the question arises can any contract signed between a sovereign government and an International contractor be terminated without any default of the contractor? What is the legal basis of any agreement between the mayor and the agitators? These were referred to the Ministry of Law by Energy Ministry. The opinion has been received.

"In such case if government terminates the contract the aggrieved party will obviously go to arbitration and there is no reason for Bangladesh to win the arbitration. .Bangladesh will have to account for HUGE compensation and its image in the international business world will be seriously dented. The situation is very tricky for Bangladesh government"

In modern mines water management and refusal handling are very scientifically done. The author has visited few underground and two surface mines here with some very experienced miners. The author is really amazed to see how professionally the activities are done here. Australian mining rules is very stringent. The environmental regulations are also pretty stringent .The occupational health and safety issues are also very meticulously followed.

And the icing on the cake!!

"For Bangladesh it is not possible to step out from a signed contract with any international contract unless the other party makes major default which can cause termination of the contract."

"Mr.Islam has also mentioned that the committee had no access to documents which could justify governments action for revision of royalty rate from 20% to 5 or 6%."

"Unless we plan setting up enough coal based industries to consume most of the coal domestically sooner or later Bangladesh will come under pressure to let export the coal."

Sunday, January 6, 2008 03:24 AM GMT+06:00

Metropolitan
Adopt habitat-friendly coal mining
Speakers call at discussion

Phulbari residents will not oppose coal mining in the area if their habitat and livelihoods remain unaffected said leaders of Phulbari Rakkha Committee yesterday.

"We shall have no objection if mining is done without affecting our habitat and livelihoods," said Khurshid Alam Moti, joint-convener of Phulbari Rakkha Committee, a body which is protesting open-pit mining at Phulbari in Dinajpur district.

"We urge the government to consider our expectations before taking any decision," he said.

Moti made the appeal after the screening of a documentary on Phulbari at a discussion in the city which was organised by the Society for Environment and Human Development (SEHD).

Former chief adviser of a caretaker government Justice Muhammad Habibur Rahman, Chief of Coal Policy Review Committee Prof Abul Matin Patwari, Advisory Editor of Amar Desh Ataus Samad, Prof Anu Muhammad of Jahangirnagar University and Prof Nurul Islam of Buet spoke on the occasion.

Prof Sakhawat Ali Khan, SEHD chairman and a teacher of mass communication and journalism department, chaired the programme.

"I don't think any government would be able to take any decision without considering the objections of people. I am sure the present or the next government will go forward considering the issue honestly," said Justice Rahman.

up 14% maybe things are on the move ??

coal policy submitted Smiler by advisory committee to Bangla govt....

Fingers crossed aj :)

you never know Smiler - though hard to decipher what is really going on....!

Reduce dependence on gas: Plan to develop coal sector
January 10, 2008, Updated: Bangladesh Time 12:00 AM

BSS, Dhaka

The draft Coal Policy review committee in its final report has recommended that use of natural gas in different sectors including power should be gradually lessened side by side with increasing the use of coal and other substitute fuel sources to ensure energy security in the country.

The report was yesterday handed over to the Secretary of the Ministry of Energy and Mineral Mohammad Mohsin, with a provision for forming a public sector organisation named "Coal Bangla" to develop the coal sector, an official handout said.

The Secretary received the report from committee chairman Professor Abdul Matin Patwary. The 10-member review committee, formed on June 21 last, finalised the report after reviewing the overall draft coal policy in as many as 19 sittings, it said.

The committee felt that ensuring energy security through the speedy development of the coal policy is its main objective, the handout said.

Professor Nazrul Islam, Maj. Gen. Mohammad Ismail Faruq Chowdhury, Professor Nurul Islam, Journalist Ataus Samad, Professor Mostafizur Rahman, Nazrul Islam, Mohammad Maqbul-e-Elahi and Mohammad Ehsanullah were present during the handing over of the report.

Officials of the Ministry of Energy and Mineral Resources were also present on the occasion.