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/

"

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.

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

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.

Evening Smiler - been away on other business but back in contact again.

Will we reach 175p do you think?

yes could do ! Interesting times ahead !!

GCM diversifies with Aura stake purchase
21/05/2008


Coal mine developer GCM Resources has moved into uranium exploration in Sweden and Australia with the acquisition of a 13% stake in Perth-based Aura Energy.

GCM, which currently develops coal mines in Bangladesh and South Africa, has subscribed for 5.6m shares in Aura for a total of 790,000. Aura will use the funds for drilling and analysis work in Sweden and at projects in Western Australia.

"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," GCM chief executive Steve Bywater said.

"This is an exciting opportunity for GCM as it looks to expand its portfolio of investments on a global basis."

Of Interest:

Coal to remain energy 'backbone'
From Herald News Services
Published: Wednesday, May 21, 2008
Coal, the world's fastest-growing source of energy, will remain a "backbone" of global power generation, bolstered by expanding demand in developing nations, the International Energy Agency said.

Coal generates about 30 per cent of power in the 27-nation European Union, according to Brussels-based lobby group Euracoal. That rises to more than half in the U.S. and about two-thirds in China. Growth will be fastest in developing nations outside the 30-member, Paris-based Organization for Economic Co-operation and Development, the IEA said.

"Coal will remain the backbone of our energy system, especially in power generation," Fatih Birol, chief economist of the IEA, told a McCloskey coal conference in Nice, France, on Tuesday.


Efforts by the EU to curb emissions blamed for global warming may be weakened by the expansion of power generation in nations such as China and India, Birol said.



Also :

As Oil Prices Rise, Nations Revive Coal Mining


http://www.nytimes.com/2008/05/22/business/worldbusiness/22mines.html?hp

Polo Resources says 'satisfied' with progress, 'confident' on growth prospects
AFX


LONDON (Thomson Financial) - Polo Resources Ltd. said reported its first pretax loss, but said it is 'satisfied' with its progress and remains 'confident' about future growth prospects.

For the period from May 23 to end-March, the natural resources investment company, reported a pretax loss of 809,000 pounds and operating loss of 1.18 million pounds.

Talking about its 175 pence a share preliminary cash offer for GCM Resources Plc., the company said the approach is subject to the arrangement of necessary funding.

This does not amount to a firm intention to make an offer and, accordingly, there can be no certainty that any offer will be made even if the necessary funding is arranged, Polo Resources added.

Of Interest:

Mittal sparks rush for coal resources

Buys 14.9% stake in Australia-based Macarthur Coal, eyes entire co


http://www.thehindubusinessline.com/2008/05/25/stories/2008052550480600.htm


Also ;

Coal prices jump towards $US140
Email Print Normal font Large font AdvertisementMay 26, 2008 - 6:32PM

Australian thermal coal prices, a benchmark for Asia, rose to a 13-week high to top $US138 a tonne in the latest week, extending a three-week rally that was spurred by strong global demand amid high oil prices.

pretty obviously heating up on the ground.

http://www.thedailystar.net/story.php?nid=38380

Phulbari Coalmine
Govt warned of slide in law, order situation
Advised to suspend Asia Energy activities
Sharier Khan


An intelligence agency in a special report has suggested that the government temporarily suspend all direct or indirect activities of Asia Energy to avert severe deterioration in law and order around Phulbari coalmine.

In a report to the energy ministry, the home ministry has referred to a special report of the intelligence agency saying that in order to avoid such a situation, the government must formulate a policy on Phulbari coalmine that is acceptable to all considering national and local interest and on the basis of open discussion at national level.

The report also suggested that the government should motivate all local people in favour of the coalmine.

Sources say the energy ministry on May 15 reviewed the report and observed that Asia Energy has not been given any lease to develop Phulbari mine and the government has not taken any decision on open cut or underground mining.

Decisions on these matters may be taken after the draft coal policy is finalised.

The process to frame the coal policy was initiated by the energy ministry since August 2005. This process slowed down apparently due to disputes surrounding the proposed Phulbari coalmine and Asia Energy.

The ministry also felt that the Bureau of Mineral Development (BMD) should ask Asia Energy to refrain from all activities under its own name or other names.

Later, the ministry decided not to say anything to Asia Energy.

Asia Energy's activities in Phulbari came to a halt following violent protests, in which six people were killed in August 2006.

The protests were organised by the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port. The key factor of the protests included fear of displacement of more than 200,000 people and losing huge arable land.

After the Phulbari protests, the government officially did not say anything to Asia Energy, while the British company routinely filed applications enquiring about the status of its proposal for the mine.

On March 7, 2007, the BMD wrote to Asia Energy for the first time saying the company would have to wait till the coal policy is finalised. The BMD sent a second letter on November 5 reiterating the same position.

Though Asia Energy made a visible presence in 2002, it did not draw national attention till it submitted a feasibility study and a scheme of development in 2005.

The company in its study shows the mine has 572 million tonnes of high quality coal and 90 percent of it can be extracted through an open pit mine.

Asia Energy's proposals included building a 500MW coal-fired power plant at mine site at an estimated cost of $476 million.

The company was scheduled to start the mine development from late 2006 with first coal in 2008. Full production was expected to be achieved by 2013.

Asia Energy entered the coal mining scenario in 1998 by buying the mining contract originally given to international coal giant BHP on August 20, 1994.

Supporters of National Committee to Protect Oil, Gas, Mineral Resources, Power and Port say Asia Energy was given the exploration licence unfairly by compromising national interest. They add that the company had no mining experience and that open pit mining will harm the environment.

Petrobangla experts however differ with the Committee, especially on the question of open pit mining, saying Bangladesh lacks energy security and its coal can provide a great solution.

Sixteen million tonnes of coal can generate 5,000MW power for one year. Coal can also be transformed into synthetic petroleum and a host of other useful chemicals.

The Asia Energy debate is holding back all decisions regarding other prospective coalmines.