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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Minesite:

June 13, 2008

India Plans To Increase Power Capacity Massively Over The Next Five Years, With Clean Coal As The Primary Energy Source


By TC Malhotra in New Delhi



The Indian Coal Minister, Mr. Santosh Bagrodia has announced that the federal government has made it mandatory that there should be 100 per cent washing of all Indian Coal. Inaugurating a conference on Clean Coal for Green Power in New Delhi, the minister said that to sustain Indian economic growth at eight per cent, the country requires energy security in the face of rising prices, as well as more power for sustaining the industrial and economic growth. The current thinking is that Indias energy requirement by the end of its 11th Five Year Plan, which runs from 2007 to 2012, will be over 200,000 MW. That represents an addition of over 78,000 MW, or growth of about 40 per cent.
Around 79 per cent of the power generated in India is derived from coal. By the end of 11th Plan, the demand for coal should be roughly 732 million tonnes per year, up from the present level of 466 million tonnes. Presently, the annual incremental growth of coal production of coal is around six to seven per cent, and even that needs to go higher to around 10-12 per cent just to meet the immediate coal demand.

The minister highlighted that clean coal offers the benefits of lower ash content and fewer impurities. The ash content of some Indian coal is higher than 40 per cent. He also addressed concerns about pollution from the methane gas associated with coal deposits, recognizing that there are opportunities to commercially exploit that methane. And Mr Bagrodia also wants more recycling of power station emissions like carbon dioxide, sulphur dioxide and nitrous oxide. So looking ahead, the Indians are keen to lay the emphasis on clean coal technologies and those surrounding coal bed methane, coal mine methane, coal liquefaction and underground coal gasification.

Washing coal can reduce ash content by 10 per cent, while the resulting product is also more energy efficient. The pressure on the fly-ash disposal ponds would also be reduced as the material to be disposed of would be considerably less.

According to the minister the government is aiming at a capacity of 250 million tonnes per annum in the next five years. Another important area that the government is exploring is whether underground coal gasification can be taken up on non-minable deposits where commercial coal production is not possible. The government has identified around 229 coal blocks of which 182 coal blocks were allotted to various private public entrepreneurs with the aim of mining a further 100 million tonnes per annum to directly feed power generation in the country. The government has also sanctioned 26 coal blocks for the production of coal bed methane or for coal gasification. Commercial production has already started in the Raniganj Coalfields.

The Minister appealed to the experts gathered at the conference to concentrate on two prime issues: minimizing pollution and emissions through greater use of clean coal technologies, and addressing the high costs associated with these technologies. The minister appealed to coal companies to step forward to take up clean coal technologies so as to reduce emissions and minimize global warming.

Industry analysts say that coal is an abundant source of non-renewable fuel across the world, but the quality of coal varies significantly by region. Demand for coal has increased significantly over the past 30 years. This trend is expected to continue at an even faster rate in upcoming years, with most of the rise in demand coming from China and India. The increase in coal consumption stems mainly from the need for more electricity in both of these countries.

Looks like someone else must be interested in GCM - up 16% this morning and sp at 272p. Wat's going on?

I have been in this for a while buying from 90p and always said if they get the Green Light stand by for a 10 share !! they are near making up there minds !!

Govt to adopt coal policy soon Tuesday, Jun 17 2008
Uncategorized phulbariproject 9:35 am

The government is expecting to finalise the long-awaited policy soon to extract the huge coal reserves to supplement fast depleting gas resources, a senior energy official said yesterday.

To meet the energy demand we will have to use the coal resources, said M. Tamim, Chief Advisers Special Assistant for Power, Energy and Mineral Resources.

I ask all to leave it (issue of coal extraction) to the experts, have trust in them, he said, responding to critics who oppose any deal with foreign companies to run the coal fields.

Everything will be done on the basis of accountability and transparency, Tamim told a seminar on Energy security and Development.

Bangladesh, with its 150 million population, faces a serious energy crisis, with lack of gas to produce electricity. The crisis is set to worsen by 2011 when its proven and recoverable gas reserves could run out.

As a result, attention is increasingly turning to the countrys vast coal resource.

The draft of the coal policy is soon to be placed before a cabinet meeting for approval, Tamim said.

The country now extract coal from just one of five fields with 2.55 billion tonnes, with technical assistance from a Chinese firm.

Energy officials say Bangladesh should adopt the coal policy quickly, to allow foreign firms to work on two large coal fields in the countrys north at an early date.

The projects worth a total US$6 billion have been put forward by Indian conglomerate Tata Group and Asia Energy Corporation (Bangladesh), a sister firm of UK-based GCM Resources PLC.

Both are pending as environment assessment and rights groups have continued to protest to force the government not to allow foreign investors in the coal sector.

The government, however, says it would carefully consider all issues and concerns before handing them over to any investor and that the coal policy will have provisions to protect local interests.

The effect on the sp is just amazing!

Are you in Toya ?

Yes - thank goodness I stayed in when tempted to sell a short while back! Just for a change I managed to curb my impatience

well Interesting times for sure If positive news soon we could see 5 /10

Devlopment Project News in Phulbari
Govt to adopt coal policy soon
Tuesday, Jun 17 2008
Uncategorized phulbariproject 9:35 am



LOOK's like we could touch 3 today !!

UK smallcap opening - GCM Resources climbs as Morgan Stanley ups stake
AFX


LONDON (Thomson Financial) - GCM Resources climbed 20-1/2 pence to 320 as Morgan Stanley lifted its stake in the group to 12.08 percent, while Central China Goldfields edged up 0.375 pence to 5.875 after the company said it is on track to produce early cash flow from small scale mining and gold production at the Dong Mao Huo project in the Nei Menggu Autonomous Region, with a targeted start-up in the first quarter of next year.




4.00 By Close ??

Thanks Smiler. Bought in October at 99p on your rec. best stock I've held in a while! Keep up the good work!

sure has rocketed .... well done Toya and others .... not a stock i have followed at all, but as rise is on fairly light volume, prob best to avoid being sucked in at this stage ...... general markets also looking vulnerable, so this sort of stock is more likely to get walloped if further significant weakness

massive rise......could be a deleterious fall......a profit is a profit.....my broker said at 120p they probably wouldnt move much more in the short term so i didnt bother.....But this is pure speculation...and on small volume......if it turns it could be nasty...good luck to all holders and well done...just wish i'd bought some!

Wednesday, Jun 18 2008
Uncategorized phulbariproject 7:32 am

The government is considering wider use of coal as an alternative energy source to safeguard the interests of the countrys industries, said Chief Advisers Special Assistant for Power and Energy Ministry M Tamim yesterday.

As the countrys current electricity shortage has slowed the industrial growth, we need to seek an alternative source to gas and ensure the maximum use of that source, he said.

He was addressing a symposium on Mining and Community Livelihoods in Bangladesh jointly organised by energy and mineral resources division and Petrobangla in the capital.

Tamim said the national coal policy with a clear direction on coal exploration, coalmine development and leasing of the coalfields is likely to be declared by June.

For the sake of sustainable industrial growth, we have to go for coal mining, said M Tamim.

He said coal mining might acquire a huge land of a particular region and that would affect the agricultural production and evict a community from their ancestral land.

People who will lose their land will be compensated by the government under the traditional law, he added.

He said if the countrys energy deficit can be met by coal in near future, the government will be able to save a portion from the sector and provide subsidy to agricultural sector.

He also said the countrys gas reserve is already running out due to household use and electricity production, and finding new gas reserve is also very costly.

Due to lack of adequate investment and technical support, it is not economically feasible to find new gas reserve now, said Tamim.

Moreover, the prices of gas and oil are rising globally. So it is very important now to think about alternative energy sources and reduce pressure on gas, he added.

Chairman of Petrobangla Jalal Ahmed said to meet the demand for energy for producing electricity and fertiliser, government should examine and use its own resources instead of importing those.

Mohammad Mohsin, secretary to energy and mineral resources division, was also present at the symposium.


http://phulbariproject.wordpress.com/

why can none of you guys understand that a synopsis makes a much better post, perhaps with a link to the whole if anyone wants to see it ...... so much of the above (and 99% of all other pasted long posts) is superfluous in deciding whether or not to invest (or sell)

Well I seem to have missed this one---might have known cynic wouldn't! :) well done all who have enjoyed the rise.

Bangladesh: Power Sector Development Policy Credit



WASHINGTON, June 17, 2008- The following project was approved today by the World Banks Board of Executive Directors:



Credit: US$120 million

TERMS: Maturity = 40 Years; Grace Period = 10 Years

PROJECT DESCRIPTION: The Power Sector Development Policy Credit supports a subset of the Governments program of power sector reform. The policy actions supported by the Credit cover the areas of: (i) financial stability and restructuring, (ii) private investment in generation (iii), regulatory reform and institutional strengthening, (iv) corporate governance of state-owned enterprises in the sector, (v) transparent and accountable commercialization of energy services, and (vi) rural electrification strategy and institutional development. The development objective is the enhancement of governance and accountability, and financial stability in the sector, leading to better and more sustainable service provision.


http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21808803~pagePK:64257043~piPK:437376~theSitePK:4607,00.html?cid=3001

Wednesday, June 18, 2008

Draft of the coal policy finalized, land owners will not get-back their land
At last, the draft of the coal policy has been finalized after some changes and it will not be placed to the advisory council for approval before July. The land owners will not get-back their lands after completion of mining, said in the amended draft policy. The abandoned land after mining will be treated as Khas land. But the review committee recommending returning the land to the original owners after coal extraction. The energy ministry thinks that it is almost impossible to handover the land to the owner due to legal complexities. Energy secretary Md. Mohsin said this change had to done considering legal aspect. The policy also keeps open pit mining provision. Energy ministry has sent the draft policy for opinions to 8 ministries and divisions including Ministry of Power, Law, Environment, Land, Agriculture and National Board of Revenue, asking to submit their opinions by 22 June 2008. The energy ministry will sit in an inter-ministerial meeting on June 26 receiving these opinions and will finalize the much discussed coal policy considering the opinions. Afterward, the policy will be placed before the advisory council for approval.

Source: The Bangla daily "The Daily Jugantor"
Date: 17 June 2008

http://phulbarienergy.blogspot.com/2008/06/draft-of-coal-policy-finalized-land.html

M+ .... have not been within methane smelling distance of this one

99p to 3.50 ????