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/

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http://www.thedailystar.net/story.php?nid=18738


NY conference to brand Bangladesh 'exciting investment' destination
Star Business Report

A major conference on investment opportunities in Bangladesh, organised by the Asia Society and sponsored by the financial services group JPMorgan, will be held in New York later this month with the country being described as “one of the world's most exciting investment opportunities.”

The conference titled 'Updated Investment Opportunities in Bangladesh' is being held at a time when foreign investment in the country's stock exchanges has been rising. In 2007 net foreign or portfolio investment on the Dhaka Stock Exchange surged 830 per cent to TK8.9 billion.

The conference, to be held on January 24 at the Asia Society and Museum in New York, is co-organised by Network of Young Bangladeshi American Professionals.

According to the invitation from the Asia Society, an organisation working to strengthen relationships and promote understanding among the people, leaders, and institutions of Asia and the United States, the Bangladesh economy has steadily accelerated in recent years, with growth reaching 7 percent in 2006.

The invite continues, "Despite the troubled political environment and extreme poverty, the country scores particularly well on socio-economic indicators. Global banks and multilateral institutions also present a highly optimistic outlook: Citi, Goldman Sachs, JPMorgan and Merrill Lynch have identified Bangladesh as a key investment opportunity. This impressive growth occurs in a climate of political restructuring."

The caretaker government is “implementing reforms toward privatising many state-owned enterprises. The Dhaka Stock Exchange Index is at a 10-year high, up 66 percent last year, making it Asia's top performer after China. And the stock market is expected to double in size in 2008.”

“Discover why market-oriented reforms, strong socio-economic indicators and highly favourable demographics are poised to render Bangladesh one of the world's most exciting investment opportunities, it says.

At the conference, David Fernandez, head of Asia Sovereign Research of JPMorgan, Iftakharul Islam, founder and managing partner of Asia Tiger Capital Partners, Ahsan Mansur, division chief, Middle East and Central Asia of International Monetary Fund, Nasim Manzur, chief executive officer of Apex Adelchi, Apex Enterprise, Munawar Misbah Moin, group director of Rahimafrooz (BD) Limited, Mamun Rashid, managing director of Citibank NA, Bangladesh, and Dominic Wilson, managing director, Global Economics Group of Goldman Sachs & Co are the invited speakers.

http://www.thedailystar.net/forum/2007/october/coal.htm

;)

nice tic up today !!

long may it continue smiler - rewards to the long term believers eh? Still be nice for something to firm up though.... but sp going in the right direction.

Tata, Asia Energy for sharp adoption of nat'l coal policy

M Azizur Rahman

The Indian business conglomerate - Tata Group - and the UK-based - Asia Energy - have cautiously welcomed submission of the report by the review committee on the national coal policy.

Both the foreign companies, keenly waiting to invest in the country's coal sector, have also underscored the necessity to immediately adopt the national coal policy and initiate its implementation.

The accumulated investment proposals of Tata and Asia Energy, now pending with the Board of Investment (BoI), is around US$ 5.5 billion and a significant portion of their investments are for coal mining in Bangladesh.

"As long as the policy is growth oriented and the benefits are derived by the nation it will be welcomed by all," the resident director of Tata Group in Bangladesh Manzer Hussain told the FE.

"We are waiting for long," Hussain said adding, "We are now looking for a government decision."

Tata submitted its latest investment proposal worth $ 3.0 billion to the BoI on April 30, 2006 to develop 6.0 million tonnes capacity open pit coal mine at Barapukuria of Dinajpur, install one 2.4 million tonnes per annum capacity steel plant at Pabna, and 1.0 million tonnes capacity urea fertiliser plant in Chittagong.

Regarding the committee report submitted to the energy secretary on January 8, 2008 the Tata Group's top official in Bangladesh, however, said that there is a similarity between Tata's proposal and the review committee's suggestion especially on the issue of joint venture and equity participation from the capital market.

"Tata in its investment proposal offered joint venture between Tata and state-owned Petrobangla to develop Barapukuria open cast coalmine," he said.

The review committee's recommendation also noted that the foreign companies, willing to develop the country's coalmining sector, must have to go for joint venture with a proposed state-owned entity Coal Bangla.

Besides, Tata also planned to raise a portion of its capital from the Bangladesh stock market, Manzer Hussain said.

"We are happy that the government at last got the review committee submitted," a senior Asia Energy official told the FE.

Requesting anonymity the Asia Energy official, however, alleged that there are some recommendations that do not fit with the reality.

"There was no forecast on the coal market," he said adding, "The issue of coal export was not rightly assessed."

The review committee in its recommendation opined that there is no scope of coal export to ensure energy security for next 50 years.

Asia Energy official, however, acclaimed the committee recommendation to select the mining method of any coalmines on the basis of experts' opinion along with the geological structure and coal depth.

The Asia Energy could consider the issue of joint venture with a state-owned company, he said adding, "The floating of Asia Energy shares in the Bangladesh stock market is already planned."

Asia Energy submitted a feasibility study and scheme of development report involving its $ 2.5 billion investment to develop Phulbari coalmine on October 2, 2005.

http://www.energybangla.com/article_det.asp?aId=845
Bangladesh: Decision on Some Investment Offers Likely by January 2008
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World


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The government of Bangladesh is actively contemplating deciding on some of the investment offers worth about $12.5 billion (1250 crore) by next month as part of its plans to gear up economic activities in the aftermath of the two consecutive floods followed by the recent cyclone Sidr.

Following appointment of Kamal Uddin Ahmed as the new executive chairman of the Board of Investment (BoI) on November 26 last, the government asked it to expedite the processes relating to the proposals.

A senior official said, "We were asked to contact the parties concerned to know their latest positions on the investment proposals before calling them to resume negotiations."

Requesting anonymity, he said the foreign investment proposals, lying with the BoI since long, include $3.0 billion from India-based Tata, $2.5 billion from the UK-based Asia Energy, $ 1.6 billion from the US-based Vulcan Energy, $1.5 billion from the South Korean Luxon Global, and around $ 1.0 billion from the Saudi Arabian Kingdom Group.

There is also another foreign investment proposal from the Global Steel Holdings Ltd (GSHL), a subsidiary of the UK-based Mittal Group, involving $2.9 billion.

The fresh government move came in consideration of creating more jobs and gearing up the economy hit hard by the devastating floods and the cyclone Sidr.

The entire functioning of the BoI had been hampered for over a month after the government, in a major reshuffle in the administration on October 18, transferred its executive chairman Mohammad Mohsin as secretary to the Energy and Mineral Resources Division, among other five top bureaucrats.

During the period the BoI had to postpone many of its meetings in absence of its chief, BoI insiders said, adding that even a meeting with Chief Adviser Fakhruddin Ahmed scheduled for November 8 to discuss the overall investment scenario and other issues was also postponed.

A significant decline in registering investment proposals has already worried the BoI insiders as both local and foreign investors are adopting a wait and see approach, they said.

According to the World Investment Report-2007 published recently, Bangladesh received $792 million (79.2 crore) in foreign direct investment (FDI) in 2006, 6.0 per cent less than that of 2005.

In 2005, the actual FDI inflow was $845 million, the highest ever in a single year.

BoI insiders expressed their fear that in the current year investments might decline sharply as a longstanding effect of last year's political turmoil and a sluggish trend in registering investment proposals.

Registration of investment proposals, both foreign and local, declined significantly, about 30 per cent, in the first nine months of 2007.

Although the BoI targeted FDI worth $1.0 billion for 2007, the current trend proves that it might not be possible for the current year as large investment proposals are still hanging in the balance.

When asked, sources expressed their reluctance to give details of the investment offers, which are on top of the list for decision by next month. The government is actively contemplating deciding on some of the investment offers worth about $12.5 billion (1250 crore) by next month as part of its plans to gear up economic activities in the aftermath of the two consecutive floods followed by the recent cyclone Sidr.

Following appointment of Kamal Uddin Ahmed as the new executive chairman of the Board of Investment (BoI) on November 26 last, the government asked it to expedite the processes relating to the proposals.

A senior official said, "We were asked to contact the parties concerned to know their latest positions on the investment proposals before calling them to resume negotiations."

Requesting anonymity, he said the foreign investment proposals, lying with the BoI since long, include $3.0 billion from India-based Tata, $2.5 billion from the UK-based Asia Energy, $ 1.6 billion from the US-based Vulcan Energy, $1.5 billion from the South Korean Luxon Global, and around $ 1.0 billion from the Saudi Arabian Kingdom Group.

There is also another foreign investment proposal from the Global Steel Holdings Ltd (GSHL), a subsidiary of the UK-based Mittal Group, involving $2.9 billion.

The fresh government move came in consideration of creating more jobs and gearing up the economy hit hard by the devastating floods and the cyclone Sidr.

The entire functioning of the BoI had been hampered for over a month after the government, in a major reshuffle in the administration on October 18, transferred its executive chairman Mohammad Mohsin as secretary to the Energy and Mineral Resources Division, among other five top bureaucrats.

During the period the BoI had to postpone many of its meetings in absence of its chief, BoI insiders said, adding that even a meeting with Chief Adviser Fakhruddin Ahmed scheduled for November 8 to discuss the overall investment scenario and other issues was also postponed.

A significant decline in registering investment proposals has already worried the BoI insiders as both local and foreign investors are adopting a wait and see approach, they said.

According to the World Investment Report-2007 published recently, Bangladesh received $792 million (79.2 crore) in foreign direct investment (FDI) in 2006, 6.0 per cent less than that of 2005.

In 2005, the actual FDI inflow was $845 million, the highest ever in a single year.

BoI insiders expressed their fear that in the current year investments might decline sharply as a longstanding effect of last year's political turmoil and a sluggish trend in registering investment proposals.

Registration of investment proposals, both foreign and local, declined significantly, about 30 per cent, in the first nine months of 2007.

Although the BoI targeted FDI worth $1.0 billion for 2007, the current trend proves that it might not be possible for the current year as large investment proposals are still hanging in the balance.

When asked, sources expressed their reluctance to give details of the investment offers, which are on top of the list for decision by next month.

Coal mining at Borapukuria resumes


DINAJPUR, Jan 14: Mining of coal from the Borapukuria field resumed today after two months with the prospect of yielding 2,000 metric tons per day, reports UNB.
This will facilitate full-fledged operation of the adjacent coal fired 250-megawatt thermal power plant easing the shortage of power supply.
Dr M Tamim, who took over the charge of energy ministry as special assistant to the Chief Adviser on Saturday with a pledge of exploration of energy sources, went 1400 feet down the mine to see resumption of extraction of coal.
Extraction started at 1pm from the coal phase No. 1103 prepared following operation of 1109 completed on November 19 last year and overhauling of the equipment.
"Hopefully, operation of this phase will go on without disruption," former BUET professor and mineral expert Dr Tamim told newsmen at the coal field.
He estimated that 3.57 lakh metric tons of coal will be extracted from 1103, operation of which will continue till July next.
Extraction of coal in phase 1110 was abandoned in July last year as gas was wobbling out. Following that the well was sealed and the equipment was brought out with much difficulty.
Managing director of the coal field MA Aziz Khan informed the special assistant to the CA that one thousand metric tons of coal will be extracted every day during the first seven days. Thereafter 2000 tons will be extracted to meet the demand of the power plant.
He said, about 500 metric tons of coal was available every day from the process of developing of phase No. 1104. More than 4.46 lakh metric tons will be extracted from 1104.
Petrobangla director Moqbul-e-Elahi, coal field MD Aziz Khan, DC Saiful Hasan were among those present at the function.

OF INTEREST:

http://online.wsj.com/article/SB119938889424265505.html?mod=googlenews_wsj


Asia Looks to Coal As Oil Price Surges
By David Winning
Word Count: 586 | Companies Featured in This Article: Sasol
BEIJING -- Vast coal reserves in Asia are gaining attention as major energy consumers such as China and India grapple with the reality of oil prices around $100 a barrel and the risks they pose to their economies.

Multibillion-dollar facilities that convert coal to oil are being studied across Asia, while utilities are shelving plans to build power plants that use natural gas or fuel oil because prices of those fuels track the cost of crude.

Crude-oil futures on the New York Mercantile Exchange are more than 50% higher than they were a year ago and are within sight of ...

DHAKA (Reuters) - Asia Energy Corp (Bangladesh), sister firm of UK-based GCM Resources PLC, has proposed to build a 1,000 megawatts (MW) power plant using coal from Bangladesh's northwest field, a senior energy official said on Saturday.

The firm submitted a plan to the Bangladesh government to develop a coal mine at the field at Phulbari, 350 km (220 miles) northwest of the capital Dhaka, using open pit mining technology.

"We have received the proposal (for the power plant) through the board of investment, but before giving them any green signal, we need to get an approved national coal policy," the government official said.

A committee appointed by the ministry of power, energy, and mineral resources submitted a draft coal policy to the government last week for approval.

"Bangladesh is facing a recognised shortage of energy and power and the situation is worsening, ... and coal-fired power stations are being seriously discussed by the government and people," said Gary Lye, chief executive officer of the Asia Energy Corp (Bangladesh).

Bangladesh faces a power deficit of up to 2,000 MW against demand of 5,000 MW daily, energy officials said.

Frequent power failures cut the country's gross domestic product by around $1.0 billion annually, the World Bank said, and would need $10 billion invested over the next 10 years to overcome the shortages.

Asian Development Bank had said they would assist the authorities to build power plants to generate 2,000 MW at Phulbari.

"Before financing to a major power station, one needs to have a fuel supply guarantee. With the plus 35 years life span of the Phulbari Coal Project, Asia Energy is in a position to offer such a guarantee," Lye told Reuters.

Asia Energy mining company is lining up an offer to invest $3.0 billion in a Bangladesh coal project, which can produce 15 million tonnes of coal a year and can give the state $7.8 billion in revenues over 30 years, Lye said.

"We are ready to start work as soon as we receive green signal from the authority," he added.

During the feasibility study in 2004-2005, Asia Energy drilled 108 holes and defined resource of 572 million tonnes of high quality coal at the Phulbari coal basin project.

The current coal reserve in the country's five coal-fields is around 2.55 billion tonnes, including Phulbari, officials said.

Experts said gas reserves in the country were fast depleting, so its power plants should be coal-based.

Internet Edition. January 27, 2008, Updated: Bangladesh Time 15:00 PM

Asia Energy plans to set up 1000mw power plant: $2b to be invested to develop Phulbari Coalmine: CEO

Asia Energy plans to build a 1000-MW power plant in its prospective Phulbari Coal Mine Project area for optimum utilization of the mine's coal.

The UK-based coal-mine developer has announced their plan recently considering the country's electricity demand, now increasing at a rate of about 8-10 percent a year.

However, implementation of the power project will depend on government approval to a development scheme submitted by the company in 2005.

The government is yet to approve the Asia Energy's development scheme as it was waiting for adoption of a national coal policy on the basis of which all the future development projects in the coal sector will get approval.

Now a draft coal policy has been framed and it is expected to be approved by the government within a few months, through a careful vetting of the maiden policy for the up-and-coming sector of the country's natural resources.

As per the development scheme, the Asia Energy will invest over US$2 billion to develop the Phulbari Coal Mine project through open-pit mining method from which it would annually produce 15 million metric tons of high-quality coal.

Asia Energy (Bangladesh) Corporation's CEO Gary N Lye said that the proposed power plant would consist of two units, each having 500-MW generation capacity.

He said his firm has a plan to extend the generation capacity of the power plant to 2000 MW considering the future electricity demand.

According to Gary, the power plant was designed to set up within the Phulbari Coal Mine area as a mine-mouth plant aiming to reduce the cost related to transportation of the coal.

The country has been facing a nagging electricity crisis as it could produce about 3500-3600 megawatts of power against a demand for more than 5000 MW. The shortage always prevails at 1500-2000 MW.

The government is aggressively trying to reduce the shortage by installing new plants. But fund constrains have been the main barrier.

Sources said if the government gave approval to the Asia Energy's development scheme, it could be a breakthrough in its effort to resolve the power crisis.

As per the Power System Master Plan 2005, the country will need 42,000 MW additional electricity by 2025 to meet the growing demand.

Of this, 37,000MW power will have to be generated with coal as the country's gas reserve is proceeding towards depletion.

Experts believe that the present gas reserve in the country would exhaust by 2015 if no new discovery could be made in the meantime.

The country's total proven and probable recoverable gas reserve is 20 trillion cubic feet (tcf) from 22 gas fields, of which 5 tcf has already been consumed.

On the other hand, country's coal reserve is estimated to be 2,514 million tons.

The government is also considering not allowing any new gas-based power plant after 2011 because of limited gas reserve. Rather, its target is to encourage installing coal-based power plants after 2011.

Coal Rises in Asia, Europe as Supply Drops in Australia, China
2008-01-28 09:34 (New York)


By Christopher Martin
Jan. 28 (Bloomberg) -- Coal rose to a record in Asia and
also advanced in Europe as floods in Australia and snow storms in
China restricted output, spurring generators to secure supply.
Anglo American Plc today said operations have resumed at
five South African mines shut Jan. 25 because of power shortages.
Coal prices at Australia's Newcastle port, a benchmark for Japan,
South Korea and Taiwan, jumped 3.9 percent to a record $93.35 a
metric ton in the week ended Jan. 25, according to globalCOAL.
European coal advanced to a two-week high.
``It's difficult to see in the next 18 months to two years
who would have the capacity to significantly increase supply,''
Graham Chapman, managing director at Richmond, U.K.-based
consultant Energy Edge Ltd., said by telephone today.
In Australia, the world's biggest coal exporter, Macarthur
Coal Ltd. and Wesfarmers Ltd. said they wouldn't be able to meet
contract supplies from some mines in Queensland state after heavy
rain. China ordered domestic coal shippers to halt exports after
heavy snow and rail congestion shut supplies to 5 percent of the
country's coal-fired generators.
Coal for delivery to Amsterdam, Rotterdam or Antwerp with
settlement from April through to the end of June gained $1.25, or
1 percent, to $125 a metric ton as of 9:32 a.m. in New York,
according to ICAP Plc prices. That's the highest since Jan. 10.
Weglokoks SA, Poland's largest coal exporter, said today it
has no supply available to sell to clients without existing
contracts. Poland was the 10th-largest exporter of coal used in
power plants in 2006.

Indonesian Supply

PT Bumi Resources, Asia's third-largest coal producer, and
smaller rival PT Berau Coal today said they can't increase
production because of government commitments and a lack of
equipment.
Taiwan Power Co., the island's biggest electricity producer,
said it plans to buy coal in the spot market because of concern
China will stop exports. The utility issued a tender last week
for about 1 million metric tons of coal and may buy more in the
spot market.
``Even before these developments, spot prices for coal and
coke were at record high levels,'' Macquarie Group analysts led
by Jim Lennon said in a report. ``Current price negotiations for
annual contracts could be settled at much higher levels than
previously thought.''
Xstrata Plc, Rio Tinto Ltd. and PT Bumi Resources will seek
higher contract prices for 2008, with Australian coal likely to
fetch more than $100 a ton at loading ports, compared with $55.65
a ton in 2007, Christine Salim, an analyst at Samuel Sekuritas in
Jakarta, said in a note to clients today. The global average may
be $80 a ton this year, and $90 a ton in 2009.

European Coal

European coal prices increased 87 percent in the past year
as utilities from Germany's E.ON AG to Enel SpA in Italy sought
an alternative to increasingly expensive oil and gas, and India
stepped up imports from South Africa. Rising prices in Europe and
Asia bolstered a U.S. market that hasn't been linked to the
international coal trade for two decades, because the country
produces enough to meet domestic use.
``If these problems linger, there's going to be significant
pressure on a market that was already robust,'' Steven Leer,
chief executive officer of Arch Coal Inc., the second-largest
U.S. producer, said in a Jan. 25 interview from St. Louis.
The other primary coal-exporting countries, Indonesia and
Colombia, are already at or near capacity and may struggle to
boost supplies, he said.

Export Markets

``Our ports are a little congested, but we still have wiggle
room to sell into export markets,'' Leer said.
Coal for delivery to Big Sandy Barge, a benchmark for the
Eastern U.S., jumped $3.50, or 5.8 percent, to $63.50 a ton in
spot trading last week, according to data compiled by Bloomberg.
Eastern coal gained 61 percent in the past year. In the West, at
Wyoming's Powder River Basin, coal rose 33 percent to $12 a ton,
according to Bloomberg data.
Consol Energy Inc. plans to open a terminal later this week
in Baltimore that was forced to halt shipments when a portion of
a pier collapsed about four weeks ago. Consol's port can handle
about 15 million tons a year, more than twice the company's
exports in 2006.
U.S. exports may climb to 75 million tons this year from 50
million in 2006, Jeremy Sussman, an analyst at Natixis
Bleichroeder in New York, said in an interview.
The biggest U.S. producers are scheduled to report fourth-
quarter earnings this week. Analysts forecast greater profits at
three of the top four producers, because of higher prices and
increasing demand internationally.

--With reporting by Claire Leow in Singapore, Alistair Holloway
in London, Winnie Zhu in Shanghai and Katherine Espina in
Singapore. Editor: Dan Stets, Stuart Wallace

To contact the reporter on this story:
Christopher Martin in New York at +1-212-617-5198 or
cmartin11@bloomberg.net.

a nice tic up today aj , may be things starting to fall in to place ? :)

Morning Smiler, another cracking morning.

Not bad ! :) just be good if this comes off ! could be a big pay day,.... could of got this at 90p 3 weeks ago !!!!!!

Have kept these for a while now, so am happy it is back at these levels.

Will be even happier when we get the go ahead with the project. :-)

AGREE 5 + Sounds very good ! :)

Coal crunch strikes Asia as prices surge
Friday, 01 February 2008

http://www.independent-bangladesh.com/200802011261/business/coal-crunch-strikes-asia-as-prices-surge.html

Polo Resources Limited
01 February 2008


1st February 2008


Polo Resources Limited
('Polo Resources' or 'the Company')

Acquisition of Interest in GCM Resources plc

Polo Resources Limited (AIM:PRL), the natural resources investment and mining
company, announces that it has reached agreement to acquire an important
strategic interest in GCM Resources plc ('GCM'), formerly known as Asia Energy
plc, representing approximately 20.5 per cent. of GCM's issued share capital.

Polo Resources has entered into an agreement to purchase 10,000,000 GCM ordinary
shares from RAB Special Situations (Master) Fund Limited ('RAB') for a total
consideration of 9,000,000 in cash and 72,340,425 ordinary shares of no par
value in the capital of Polo Resources, which are to be issued to RAB (or their
nominee) on completion. Completion of the acquisition of the GCM stake is
subject to shareholder approval at a General Meeting of the Company.

GCM, an AIM quoted London-based resource development company (AIM:GCM), is
engaged in developing a world class coal mine and power plant project in
Bangladesh, the Phulbari Project. The mine life is expected to be more than 30
years, with production of 15 million tonnes at full capacity of mostly export
quality metallurgical and thermal coal. The Phulbari Project plans to add to
Bangladesh's energy security by reliably delivering coal to the domestic market.
There is the potential to install up to 1000 MW of coal fired power generating
capacity at the mine site.

In addition, GCM has invested in GVM Metals Limited, whose primary focus is to
bring various South African coal properties to production. This investment
provides GCM with a meaningful stake in the South African coal sector and the
opportunity to assist development of a number of underground and open-cut coal
mines.

A meeting of the shareholders of the Company will be called in due course at
which the resolution to approve the acquisition of the GCM shares will be
proposed.

Stephen Dattels, Chairman of Polo Resources, said:

'The GCM acquisition represents a strategic opportunity as Polo Resources seeks
to become a major international coal mining and exploration group. Our strategy
is to acquire interests in coal projects strategically located to serve the
rapidly growing Asian market.'

Contacts:

From the Polo website:

The Company's issued share capital consists of 429,602,000 Ordinary Shares of no par value. Issue price of 5p. The Company does not hold any Ordinary Shares in Treasury. As of 27 August 2007 the Company has been notified, in accordance with the Disclosure and Transparency Rules, of the following shareholdings amounting to 3% or more of the ordinary share capital of the Company:

Name
Number of Ordinary Shares
Percentage of issued share capital

Angstrom Capital Limited 60,000,000 13.97%
Chiropo Company SA 60,000,000 13.97%
Guy Elliott 20,000,000 4.66%
SPGP 12,000,000 2.79%
RIG III Fund Limited 37,000,000 8.61%
RAB Special Situations (Master) Fund Limited 20,000,000 4.66%
Libra Fund LP and Libra Offshore Ltd 42,000,000 9.78%
Xerion 20,000,000 4.66%
Adrian Lungan 20,000,000 4.66%

In accordance with the AIM Rules (Rule 26), in so far as the Company is aware, the percentage of the Company's issued share capital that is not in public hands is 55.33%.

National energy sources-National coal policy to be announced soon
Saturday February 02 2008 23:44:28 PM BDT : Business & Economy
National coal policy to be announced soon

National energy sources

The government is expected to announce the national coal policy soon in order to ensure proper utilisation of the natural resources in the greater
interest of the country.

The draft of the proposed coal policy are being finalised with the goal of ensuring optimum production. The objective of the optimum production policy is to ensure more production of coal through ensuring pollution-free environment so that coal.
Sources said, the government is formulating the national coal policy in a bid to free the countrys natural resources from all sorts of corruption and irregularities as the previous governments made several decisions regarding the countrys fuel sector ignoring the national interest on the plea of attracting foreign direct investment (FDI) resulting in huge financial losses to the country.

The country requires at least 1200 metric tons of coal to produce power till 2035. The country, however, has a stock of some 1168 metric tons of coal. So, there is no option but to formulate national coal policy as soon as possible to ensure proper utiliation of the countrys coal resources, sources said