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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Petrobangla Gets License for First Time to Explore Coal in Joint Venture

Monday, 03.17.2008, 11:15am (GMT)

The Bangladesh government for the first time has awarded Petrobangla a license to explore Dighipara coal zone in a joint venture with a competent private mine developer, to be selected as the strategic partner through an open tender.

The government is letting Petrobangla forge a partnership with a private mine developer to tap into the country's coal resources, with the prospect of needing billions of dollars of investment, if the exploration turns out to be successful, said a competent source.

The Bureau of Mineral Development (BMD) on February 27 granted the license to explore the 4,000 hectare Dighipara zone, where high quality coal had been discovered before. It has 100 million tons of proven coal deposit and 600 million tons of probable deposit. Petrobangla applied for the license in 2006.

However the energy ministry started pushing Petrobangla to sign a memorandum of understanding (MoU) with an obscure South Korean consortium headed by a company named Luxon, in contradiction with the government's declared intention of putting out an open invitation for tenders.

Official documents show that letters sent to the Korean address of Luxon and to another member of the consortium, bounced back in the past and the Korean embassy also could not confirm the whereabouts of those companies.

Yet the ministry on Monday decided to ask Petrobangla to frame a joint venture policy under which the MoU will be signed with the consortium.

This is in clear contradiction with the ministry's earlier approval for seeking a strategic partner through an open tender for exploration and development of Dighipara coal zone, said a competent source.

Petrobangla already informed the ministry about the contradiction on February 25, clearly stating, There is no scope for considering any draft MoU for Dighipara coal field development and for setting up a power plant at the mine mouth.

Petrobangla is waiting for the energy ministry to approve the criteria for bidding for being a partner in the Dighipara coal exploration project. A meeting on the matter is scheduled for Sunday. Once the government approves the criteria for bidding, Petrobangla will go for publishing the tender schedule in the media.

With coal price soaring up to 110 dollars a ton globally due to high demand, investors are showing tremendous interest. Even the future domestic demand for coal is also projected at 13 million tons a year for the next 10 years, for generating additional power to meet the rising demand for the latter, as natural gas supply to generate power will not be able to cater to the demand for power.

Dighipara is one of the five identified areas where geologists earlier detected coal deposits.

Petrobangla is currently running Barapukuria coal mine developed by China while a private company Asia Energy submitted a proposal to develop Phulbari coal mine. Besides, the license for another zone, Khalashpir area, was awarded to controversial and incompetent company Hosaf.

Barapukuria coal mine failed to become profitable due to past corruption and flawed mining designs, Phulbari mine's future also looks uncertain due to controversies surrounding Asia Energy, and Hosaf's venture is too sketchy to be taken seriously.

Under the circumstances, Petrobangla's Dighipara venture has all the promises to become successful, said a high official adding, We believe, if there is no undue interference from powerful lobbies, Dighipara will be the country's first large-scale mine.

Petrobangla's license says the exploration should refrain from any activity that might adversely affect the bio-diversity and the environment, or harm agricultural land. Prior to the exploration, Petrobangla will obtain permissions from the environment department, ministry of land, the local government, and other relevant departments. The license was issued under the Mines and Minerals Rules, 1968.



On June 27 of last year, the energy ministry approved a decision that Petrobangla may obtain a strategic partner through an open tender upon government approval of the coal policy, and may form a joint venture company with the partner.

Ershad calls for provincial govt system

Former President and Jatiya Party Chairman Lt Gen (Retd) Hossain Mohammad Ershad emphasised on creating provinces in the country as he said the present unitary system of government has failed to work properly in achieving the development goals.

The former President advised the Forum leaders to intensify their demands for extraction and local utilisation of coal at Phulbari in Dinajpur.

Opting for open-pit mining extraction of coal he said, "It's better to extract coal by open-pit mining system as it ensures 87 per cent extraction, while the underground mining can extract 15 per cent at best.

http://nation.ittefaq.com/issues/2008/03/20/news0575.htm

Bangladesh Energy Security Entering Red Zone
Khondkar Abdus Saleque
Thursday, 03.20.2008, 05:56am (GMT)

Spring for Bangladesh is whistling away. The sweet singing cuckoos will soon stop singing. Hot humid summer is about to set in. Kal Boishaki has not started yet. But alarm bell has started ringing in Bangladesh Energy sector - gas and power sector. For the last 6 years or so Bangladeshis are facing acute power supply crisis, water crisis during every summer courtesy our under performing energy sector. For the last two years food crisis, price spirals of essentials have been added to the miseries. It is understood food prices are sky rocketing all over, oil price is creating new records. It is a crunch time for all nations to keep pace with the rising trend of food and oil prices. Politicians are not running affairs of Bangladesh for almost a year and a half. Politicians are blamed for not reflecting the dreams and aspirations of the nations while ruling the country and they also do not hesitate to accept that. Two lady PMs of the last three terms of democratic government are in solitary confinement. Many of the leading politicians and state leaders are spending time in the jails.



But this terrible situation as it is prevailing now and emerging is not expected as the persons running the country backed up by patriotic armed forces are believed to be very honest wise efficient and committed. The so called champions of democracy USA and EU countries are poking nose in our internal affairs in many different ways. Some of them are even trying to tutor our policy makers and political leaders. If they are so sympathetic to our cause they should also support us in our struggle for energy security and food security. The energy situation is worsening every passing day with very little prospect of immediate improvement.

The prevailing energy security and food security are very critical and are gradually slipping out of control. Accomplished citizen group which includes the chief of Regulatory Reforms Commission Dr.Akbar Ali Khan in a recent round table discussion opined that the country is in the midst of silent famine. Various initiatives of the government so far failed to arrest the rocketing price hike of essentials. Power load shedding has started creeping in. Summer will invariably see the energy situation worsen. Price spiral of essentials may be linked with the global situation. But for energy crisis the Care Taker Government must also share partial blame now as it has well past its honeymoon days. There is little scope now to blame previous administration for everything. People do not find any ray of light at the end of the tunnel. Time has arrived to objectively analyze the pains and gains of the energy sector in recent times. Let us have deeper analysis of the situation.



There is tendency in our culture that we always try to hide the actual situation in official figures. If the actual power demand (excluding significant suppressed demand) is about 4800 MW per day we say about 4200 MW so that the real deficit remains hidden from the public. No one gains anything but we still do it. This is ridiculous. The immediate past Energy Advisor expressed annoyance for this kind of misleading reporting of power demand and supply. Anyway for the sake of analysis let us take the present national power demand figure as 4200MW per day. The government figure indicates the generation against this is 3771 MW. So at the generation level the agreed deficit stands at 439MW. If the 20% over all system loss is accounted for the supply to end-users can be calculated as 2478. This 20% system loss is the transmission loss and other technical losses and not the theft and meter bypassing by the syndicate. The deficit is about 1293MW per day. The summer will obviously see increase in demand to about 5500 MW from end April. There will be very little improvement in generation by then. So the deficit at the end users level will become about 2500MW soon. . This means we will fail to address about 40 % of our actual demand. If we compare the the emerging situation with that in 2006 summer we may not find the situation has actually worsened. So as far as improvement in the power sector is concerned the CTG has very achieved very little or nothing at all. The power supply is directly linked with national growth and development and energy supply is directly linked with food production and transportation. So if there is no balanced growth, deficit in one area is bound to adversely affect the other. That is exactly what is happening. The power demand is increasing about 8-10% every year. But there has been no mentionable increase in generation or expansion of transmission or distribution infrastructure.

Coal Policy of Bangladesh will be Finalized Soon
bdnews24.com
Friday, 03.21.2008, 04:11pm (GMT)

The government of Bangladesh will finalize the coal policy soon, as the energy and power sector is set to expedite decision-making, a special aide to the chief adviser said Friday.

Dr M Tamim, special assistant to the chief adviser in charge of the energy, power and mineral resources ministry, said that 80 percent of recommendations in the energy policy formulated in 1996 had not been implemented in the past 12 years.

"Institutional strengthening and financial assistance are a must to make things happen now," he said, speaking as chief guest at a Sheba Bangladesh Foundation roundtable on 'Energy crisis and possibilities'.

Tamim said the 1968 Mining Act must be amended and the coal policy should be finalised as soon as possible.

Tamim said: "We have to maximize the use of foreign aid and technical assistance in the energy and power sector. We will have to generate 20,000 MW power by 2020 if we want to fulfill millennium development goals."

Decisions about all these issues must be taken without delay, he said with a warning that the huge subsidies for the energy sector had posed a serious burden on the government, which threatens to slow economic progress.

Dr Mushfiqur Rahman, general manager of Asia Energy, said the government needs to take a few difficult but essential decisions.

Mollah A Amzad Hossain, editor of English magazine Energy and Power, said the government should consider the demands raised by civil-society watchdogs and pressure groups and ignore opposition from protectionists in order to help fuel growth.

Thursday, April 3, 2008 01:18 PM GMT+06:00


'Varying opinions block natural resources exploration'
Staff Correspondent


Finance and Planning Adviser Dr AB Mirza Azizul Islam yesterday said difference in opinions has become a major obstacle to exploration of natural resources and their exploitation for generating power.

Bangladesh is a country where difference in opinions is widespread. Some quarters are now opposing offshore exploration, and exploitation of coal on environmental grounds, he said while speaking at the launching programme of Business Directory of International Chamber of Commerce-Bangladesh (ICCB) at the Bangladesh-China Friendship Conference Centre.

Referring to the power crisis in the country, the finance adviser said if they (those opposing exploitation of coal) are so concerned about environment pollution, they should live in caves where there is no pollution.

There was no new power generation in the last six to seven years, but the present government has initiated the rental power purchase scheme, which is expected to add some power to the national grid soon, he added.


http://www.thedailystar.net/story.php?nid=30533

Good News?

April 14, 2008


ADB to wait for decision on Phulbari coal mine project
Dispelling a rumor that it has pulled out from financing the Phulbari coal mine project, Asian Development Bank has said it would wait for a government decision in this regard.

Asian Development Bank, in a statement said that "ADB will continue to monitor the situation on the ground with full sensitivity to local conditions and we will also wait for Bangladesh government's decision on how to proceed in harnessing the rich energy resources, including those of Phulbari.

The release added that In the interim, we think, it is premature for ADB to continue dialogue with the private sector under the current circumstances. So, at this stage we are completely open to the suggestions of Bangladesh, civil society and other stakeholders and prepared to review our engagement in this project to ensure that all sensitivities, including concerns relating to safeguard issues are fully considered."

According to sources, the ADB was keen to finance USD 300 million, about 10% of the total fund requirement, to implement the project. The Asia Energy conducted a feasibility study on its plan to develop the Phulbari project through an open cast mining method. It submitted the study report, which included an environmental impact assessment and a development plan, to the government in 2005. But the government is yet to approve the project.

Sources said a number of NGOs, who are opposing the open pit Phulbari coal mine project and demanding its developer UK based Asia Energy to go, have spread the rumor that the ADB has decided to withdraw from the project. The NGOs have also been carrying out a campaign internationally and pursuing the ADB to abandon its project financing plan.

!

http://energybangla.com/index.php?mod=article&cat=EBReport&article=650

onday, 04.21.2008, 02:47pm (GMT)

Interests of local residents in the coal mining areas have to be given topmost priority in finalizing coal policy, said Dr M Tamim. Bangladesh has to swift to other power sources as natural gas is about to exhaust. Coal is most likely the next option but its extraction strategy must have to ensure interests of local livelihood, said the Special Aide to Chief Adviser for the Ministry of Power and Energy.

According to him, it is high time for Bangladesh to develop its coalmines. But finalization of national coal policy must be considering social, geo-political and geological situation of the particular mining area. Involving local experts and ensuring full compensation is must in coal sector development, he added.

Beside compensation, coalmine development plan needs to generate employment, particularly for local women. This would ensure local cooperation in the development process, said Dr Tamim.

He was addressing at a seminar yesterday on Mining and Community Livelihood in Bangladesh, organised by Petrobangla at its auditorium in the capital. Energy Secretary Mohammad Mohsin and Chairman Petrobangla Jalal Ahmed also spoke at the seminar.

"We can't wait. Whatever the decision is, it has to be taken very fast in a transparent and accountable manner," he added.

It has to be worked out how the impacts on the environment and local community could be minimized apart from setting the priorities between food and energy security.

It is the duty of Government to ensure that the displaced people in coal mining areas would get more benefits than those who were displaced in the Uttara and Purbachal town development projects, because coal mining is more profitable business," he added.

He also said that the reserve of gas, the countries main source of energy on which 85 percent of power generation depends, is depleting very first.

The CAs Special Assistant said there might be more undiscovered gas reserves.

"If we want to discover this gas reserve, about $8 billion investment will be required. Can we afford to take risk in this huge investment?" he asked.

Mentioning the unaffordable cost involved in gas import from Myanmar and Qatar, he said the cost would be from $5 to $7 per 1000 cubic feet (mcf) against about 2.5 US dollars in Bangladesh.

Similarly, he said, the cost of coal is going up fast like that of petroleum fuel. He said a few years back the price of per metric ton of coal was $30-40, now it has gone up to $160.

Energy security for Bangladesh
Mamun Rashid

BANGLADESH seems to be already in the middle of a severe energy crunch. Business leaders and newspapers have voiced serious concerns about the power and energy shortages and the possible adverse impact on the country's manufacturing and business sector.

Therefore the issues of medium and longer term energy security are no more a distant reality. Poor planning, lack of planning, or no planning in the past has brought about this state of affairs. Not only human sufferings from not having power for the bare minimum of decent consumption in households, the worsening energy crunch is putting on hold the entire economy's growth prospects. In fact, the crisis of energy supplies is now posing a threat of reversal in economic growth in the near future, if measures are not taken to increase power supply immediately.

The grim energy scarcity situation in Bangladesh makes it imperative for us not to waste a moment in exploiting all possible means to increase energy supplies. A great deal of precious time was wasted on mulling over the environmental impact of utilising the vast coal resources. The drag and the dithering have proved to be suicidal. Natural gas reserves have dwindled down to a perilous level due to rising demand (may be due to very low price) while alternatives such as coal remained untapped. With proper policies and their implementation, Bangladesh should have been a major coal extracting country in the region, generating power from coal and easing pressures on its otherwise limited gas resources. Even in the gas sector, reserve position of the country is not known with a degree of certainty. The way renewable energy sources are being used and developed in various parts of the world, the non-renewable ones such as coal and gas could slip out of priorities or feasibilities in energy production in the distant future.

It is of no economic benefit to Bangladesh to keep coal or other conventional non-renewable energy unused under the earth for an indefinite period of time. The best option would be to extract coal and use it while its production is still prevailing as a source of energy in the global market. It is unfortunate that we have failed to do it in a major way in the past.

But even now, crash programs can be implemented to start up large scale coal extraction and use coal for power generation. Issues such as methods of mining, ownership of the coal mines e.g. public sector or joint ventures by foreign private investors, endless bureaucratic tangles as well as reviews and controversies over these aspects need to be reduced to minimum. It is imperative that we focus on extraction of a non-renewable resource like coal at the earliest by decisively ending unproductive or rather counter-productive debates and bring the same on-stream for power production.

If the non-partisan caretaker government can't decide on this type of strategic issue (which I, of course, don't agree with, especially when the present government is bringing in major shake ups in the governance model, like separation of judiciary, independence of election commission, disciplining public service commission, anti corruption commission and etc.), then they should expedite the election for the greater interest of the nation and its economy.

Similar urgency is on the cards about gas exploration and production. The exploration process must not get bogged down by time-consuming decisions over who should explore, whether it is the country's own exploration and production company, Bapex, or foreign companies should be allowed a greater role both for onshore and offshore exploration and production of gas.

The present interim government has taken some remarkable steps (including approval of an expenditure plan of BDT 32 billion over a period of next 7 years) to revitalise Bapex. However, considering the present bench strength of civil beaurocracy in Bangladesh, ability to drive reforms and re-engineering at Bapex or Petrobangla and the time required to bring Bapex up the curve as well as the sophisticated technology required for cost-effective operations, the more sensible course would be to allow foreign companies to play their part with enthusiasm.

Foreign companies are operating in most countries of the world and it should not matter to us under the present grave conditions of energy insufficiency if they take the lead in energy production in Bangladesh as they can quickly add energy supplies to the national grid. Bapex can always play their role, once ready or side by side.

However, the process of bidding must be transparent in order to award the concession to the most deserving bidders while preserving the country's best interests. Again taking a lead from corridor discussions at home and abroad, I would urge upon reviewing the existing gas pricing model, to attract the respectable operators in this field.

Given the dire power crisis and the utmost urgency to move fast, it makes sense to attract qualified foreign companies to the power generation process. Even if there are some disadvantages to this process, it is perhaps a better choice than conceding to a reversal of economic growth and stoppage of the wheels of the economy. We need to exploit our full potential in entrepreneurship and development imperatives. Under no circumstances we want to remain trapped in the vicious circle of poverty. We want to move forward, remove the bottleneck towards wealth creation and ensure equitable distribution through better governance and a knowledge-based society.

GCM Resources PLC
07 May 2008

7 May 2008

PRESS RELEASE



GCM Resources plc



GCM AND AURA LOCATES URANIUM MINERALISATION IN ITS NEWLY AWARDED LICENCES IN
MAURITANIA







GCM Resources plc ('GCM or the Company') (AIM: GCM), in alliance with Aura
Energy Limited ('Aura') (ASX: AEE), is pleased to announce that it has been
granted three uranium exploration licence areas in Mauritania.

The licences cover 3600 km2 in Mauritania which is known for uranium
mineralisation and multiple radiometric uranium anomalies.





Highlights



Uranium mineralisation, in the form of uranium vanadate, has been
observed in all three licences in seven widely spaced shallow pits at grades
ranging from 158 ppm to 3270 ppm U. (from individual 2 kg samples)



The licences contain multiple strongly anomalous uranium channel
radiometric zones outlined from airborne surveys ranging in area up to 3.5
square kilometres. The mineralised pits lie on five of these anomalous features



The licences cover 3600 km2 in the uranium-bearing Requibat Shield in
northern Mauritania







The three newly acquired licences contain strongly anomalous uranium channel
radiometric zones ranging in area up to 3.5 square kilometres, defined by
airborne surveys. Recent field reconnaissance by Aura within these areas
located visible uranium mineralisation (uranium vanadate) in each of seven
shallow pits (to 1.2m) on five separate radiometrically anomalous zones. Uranium
grades associated with visible uranium mineralisation in the pits range from 158
ppm to 3270 ppm U, with four of the pits returning assays greater than 2000 ppm
U. The limited reconnaissance work to date has not indicated whether the uranium
mineralisation extends below these shallow pits.



The licences cover predominantly Precambrian granitic intrusive rocks with
remnants of meta-sedimentary and volcanic rocks. Drainage channels and calcrete
occurrences occur within the licences and offer sites for uranium concentration.
Two of the licences (Oum Ferkik and Oued el Foule Est) have been covered by
high quality regional airborne radiometric / magnetic survey on 700m spaced
lines. Most of the third licence (Ain Sder) has not been covered by this
airborne survey. However, the small portion of the Ain Sder licence which does
have airborne survey coverage has strong radiometrically anomalous zones
associated with visible uranium mineralisation.



As far as Aura /GCM are aware the areas have had little, if any, previous
systematic exploration for uranium. Mauritania has a developed mining industry,
a government supportive of exploration and development and keen to attract
foreign investment, and extensive geological, geophysical and geochemical
databases. The country was ranked 11th in the world in terms of investment risk
in a recently published survey of resource company executives (ahead of
countries with very active mining industries such as Mexico, Argentina, Brazil,
Tanzania).





The Aura / GCM Alliance has been actively pursuing opportunities in Mauritania,
and has a further 11 applications for uranium exploration licences pending in
the country.







Steve Bywater, GCM's Chief Executive commented:



''We are pleased to announce that uranium mineralisation has been observed in
all three areas where we have recently received licences for uranium
exploration. We are very positive about this project and the future projects in
the Aura / GCM African Uranium Alliance.'

Reported yesterday 12th may on the World Development Movements www.


"The UK government has been actively supporting plans by a British company to build an open-cast mine in Bangladesh."

"In response to a question asked in the UK parliament, the Department for Business has disclosed that it has lobbied the Bangladesh government for the mine to go ahead."

"Gareth Thomas MP, UK Trade Minister, has now admitted that the British government have lobbied to ensure that the Government of Bangladesh take the company's interests into consideration and do not prohibit opencast mining. The British high commission will continue to remain in touch with the company and will represent their interests as appropriate."

ON THE UP !! :))

Another significant factor is the announcement of elections in Bangladesh at the end of the year - the interim, military run, government that has ruled for the last two years has clamped down heavily on corruption by politicians and businessmen and it appears to feel the time is approaching where elections can be held resulting in fresh blood (hopefully non-corrupt) ruling the country.

This time next year I suspect the Phulbari project will be back on the runway and the GCM share price well north of here.

Lets hope so :) BUT LOOKING GOOD !

Sunday, May 18, 2008 03:03 PM GMT+06:00
Deep Energy Problem Ahead
Coal, new gas to help avert crisis
Sharier Khan


What should Bangladesh do when oil price hits a $200 per barrel mark?

Already battered by $100 plus price of imported petroleum, the government should prudently take some brave and quick steps to ensure energy security of the country, energy experts believe.

A readjustment of retail price of imported petroleum is not enough to face the deep energy crisis ahead, they noted.

Bangladesh Petroleum Corporation (BPC) has already sought Tk 6,800 crore from the government to subsidise losses from oil imports just for the period July to December this year. The government already swallowed many thousand crores of taka in losses for costly oil import and the BPC still owes different banks more than Tk 7,000-8,000 crore.

Combined with the power load shedding and gas supply crunch, the $200 a barrel situation will push the BPC and the country into an abyss, experts say.

Goldman Sachs Group earlier this month forecast that oil prices would reach $150 to 200 a barrel within two years. Oil price is already hitting $128 per barrel and the price has surged some 25 percent since the beginning of this year, when it crossed $100 a barrel for the first time. It now seems unbelievable that even in 1995-96 oil price hovered around $12 to 15 a barrel.

According to experts in Petrobangla, the BPC and oil companies, the government should prepare to face the inevitable. It should not waste time in taking steps to better utilise its condensate resources--which is a by product of natural gas-- to produce both petroleum and liquefied petroleum gas (LPG).

The government should also prioritise exploration of new gas resources and take legal steps for withdrawal of a court injunction on on-shore oil and gas exploration. Both Bapex and foreign oil companies should be encouraged to go for exploration and drilling of well for new gas resources.

In addition, the government should not further delay taking decisions on utilising the under utilised coal resources that appear to promise energy security of the country.

Asia Energy's activities cannot be the reason for which the government is sitting on approving the coal policy. If the Asia Energy deal was made wrongfully, it should be cancelled, and we should move ahead. If there was no wrong-doing, then also we should go ahead, said a Petrobangla official.

The country needs to reduce overall energy consumption by discouraging wastage of gas in domestic and commercial sectors. At the same time, compressed natural gas (CNG) network for the country's transport sector should also be expanded so that when oil price hits $200 a barrel, this sector does not bog down, officials said.

Possible cash offer at 175p.

A bit low ball for the potential from Phulbari so a little bit oportunistic.

yes !!

RNS Number : 7314U
GCM Resources PLC
19 May 2008



19 May 2008

The Board of GCM Resources plc ('GCM' or the 'Company') announces that after market close on the 16th May 2008, it received a preliminary approach from Polo Resources Limited ('Polo') which may or may not lead to an offer being made for the Company.

The approach by Polo is a pre-conditional cash offer for all the issued and to be issued share capital of GCM at 175p per share and is subject to financing. Polo currently owns 29.72% of the issued share capital of GCM.

Discussions are at a preliminary stage and there is no certainty that any offer will be made.

This announcement is made with the consent of Polo.

A further announcement will be made as appropriate.

Enquiries:




JPMorgan Cazenove Limited, Nominated Advisor to GCM

Michael Wentworth-Stanley: +44 (0) 207 588 2828

Steve Baldwin: +44 (0) 207 588 2828




JPMorgan Cazenove Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority for investment business activities, is acting exclusively as financial adviser to GCM and no one else in connection with the possible offer and will not be responsible to anyone other than GCM for providing the protections afforded to clients of JPMorgan Cazenove Limited or for providing advice in relation to the possible offer or any other matters referred to in this release.




Dealing Disclosure requirements

still ticing up !! :)

-----------------------------------------------------------------------

GCM Resources gets 175p/share preliminary offer from Polo Resources UPDATE

(Updating with Polo's comments)
LONDON (Thomson Financial) - GCM Resources Plc. said it has received a 175
pence a share preliminary cash offer from shareholder Polo Resources Ltd.
GCM Resources said talks are at a preliminary stage and there is no
certainty an offer will be made.
Separately, Polo Resources, which owns 29.7 percent of GCM Resources,
confirmed the approach but said it would need to raise financing for a deal to
proceed.
Polo Resources said should it agree a deal, it would seek shareholder
approval to change its name to GCM Resources Ltd.

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RNS Number : 9422U
GCM Resources PLC
21 May 2008


21 May 2008

PRESS RELEASE

GCM Resources plc

GCM RESOURCES PLC ACQUIRES 13% IN AURA ENERGY LIMITED


GCM Resources plc ('GCM or the Company') (AIM: GCM), is pleased to announce that it has subscribed for 5,586,975 shares, representing 13% of the enlarged share capital of Aura Energy Limited ('Aura') (ASX: AEE), at A$0.29 a share. The total cost is A$1.62 million (790 thousand).

Aura is a uranium exploration company based in Perth, Western Australia which was listed on the Australian Stock Exchange in May 2006. Aura has a portfolio of exploration titles which are being actively explored for calcrete-, shale- and sandstone-hosted uranium deposits.

The proceeds of the subscription will be utilised in the drilling and analysis work programme for Aura's Swedish properties plus the calcrete uranium projects in Western Australia. The other areas' work programmes are fully funded from internal funds or JV partners.

The Aura / GCM Africa Alliance has already been actively pursuing opportunities in Mauritania and Niger. The Alliance now holds 3 granted licences for uranium exploration and has a further 11 applications for licences in Mauritania, plus 3 applications for licences pending in Niger.

GCM's involvement adds mining and technical expertise to the Aura exploration expertise to take the prospects forward to feasibility study and ultimately development. The West Africa Alliance has proven Aura is capable of securing exploration tenements and working within agreed budgets.

Steve Bywater, GCM's Chief Executive commented:

'GCM is pleased to announce this investment in Aura. These funds will help Aura to develop its mineralized properties in Sweden through further drilling plus continue its exploration programme with the calcrete uranium projects in Western Australia. This is an exciting opportunity for GCM as it looks to expand its portfolio of investments on a global basis.'

Aura's Managing Director, Dr Bob Beeson, said

'These funds will enable Aura to continue its aggressive exploration programmes at its 100% owned uranium projects. These include the shale-hosted uranium province and high grade vein systems in Sweden plus the calcrete uranium projects in Western Australia. Aura has been particularly active in the past 12 months, with substantial activities on three continents. The Aura/GCM Alliance announced it has located uranium mineralization in its newly awarded licences in Mauritania, on 7 May 2008.'

Dhaka, Tuesday May 20 2008



Power division seeks record fund to add more plants in next fiscal


Shakhawat Hossain

Power division has sought a record Tk 46.78 billion for its development expenditure in the next fiscal, aiming at 10 per cent higher electricity generation and cutting system loss below 20 per cent, officials said on Monday.

The amount is 44.4 per cent higher than the revised government allocation for the power division in the outgoing fiscal when it added less than 100 megawatt (mw) in the national grid, a finance ministry official said.

The power division in its budgetary proposals said it would utilise the fund to implement the construction of 10 small power plants, 300 mw short-term rental and a 160 mw 15-year-long rental power plants.

A substantial amount of the next fiscal's allocation would be spent on 240 mw Siddhirganj and 150 mw Sikalbaha peaking power plants.

The power division said successful implementation of the projects will push up the existing electricity generation capacity by at least 500 megawatt in 2008-9 fiscal, boosting economic growth and creating thousands of new jobs.

Officials said the increased allocation would be the highest in the country's history, as the caretaker government has made power generation its top priority in its development outlay for the next fiscal.

"The government wants to reverse abysmal situation in the power sector," said a power division official, referring to lack of investment in new power plants during the previous Bangladesh Nationalist Party (BNP)-led government.

The BNP-led coalition government could manage to add only around 250 mw electricity in its five-year tenure despite spending a whopping Tk 157.60 billion in power projects during the period, he added.

The country's electricity generation capacity remained almost static at average 3500 mw between 2002 and 2006 although rapid industrialisation saw electricity demand increase at an average 10 per cent annually in the last five years.

The country has been facing shortage of an 800-1500-mw power a day since the beginning of the summer as electricity generation remained flat at around 3300-3700mw against a demand of 4500-5000mw.

Lack of new plants aside, growing shortage of gas, frequent shut down and maintenance of the age-old power plants and creaky distribution system have also aggravated the power problem, officials said.

According to the World Bank, Bangladesh needs new generation of at least 500 mw power a year and an investment of at least US$10 billion till 2020 to catch up with growing supply shortfall.

Severe financial mismanagement, corruption, inefficient operation and lack of tariff adjustment have landed the country's power sector in such a mess, it said adding the country's power crisis would linger in the next few years.

As of 2005, the WB said the country's electricity generation per capita-- at about 155 kilowatt-hours (kwh)--is one of the lowest in the world.