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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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 ????

i know it's been a wonderful performer .... was just trying to tell M+ that i don't even pretend (never do here) that i had jumped on the bandwagon at any time, let alone ages ago.

Cynic are you still in TMC ? Just I was thinking of buying a few ??

GCM Resources Advances to Two-Year High on Takeover Speculation

By Alistair Holloway and Sarah Thompson

June 18 (Bloomberg) -- GCM Resources Plc, the coal mining company that was the target of a failed bid by Polo Resources Ltd., rose to the highest in almost two years in London trading on speculation it may still be the subject of a takeover.

The company climbed as much as 23 percent, the steepest gain since July 11, 2006. Polo said on June 13 it ended an offer of 175 pence a share for GCM after failing to reach agreement. GCM is seeking funding for its Phulbari coal mine in Bangladesh from the Asian Development Bank, the company said April 8.

``The stock continues to push higher,'' said Jimmy Yates, a London-based trader at CMC Markets. ``The easy answer would be speculation that Polo is interested again but the price rise could also be justified if GCM's Bangladesh coal mine goes ahead without too many hiccups.''

GCM rose as much as 69.75 pence to 369.25 pence and was at 310 pence by 11:12 a.m. in London. It has more than trebled this year, valuing the company at 151 million pounds ($294 million).

Investors have been lured to coal mining as the fuel rose to records this year because of bottlenecks and rising demand. Utilities bordering Bangladesh in India need to double coal imports by 2012 to 40 million metric tons, Power Secretary Anil Razdan said May 21. Coal prices at Richards Bay, South Africa, have jumped 41 percent in 2008, McCloskey Group Ltd. data show.

http://www.bloomberg.com/apps/news?pid=20601085&sid=alm4QLzq39DU&refer=europe

got out of TMC agers ago, but not until i had blown a damn good profit, but also taken a walloping into the bargain - bloody fool!

Took profits this morning as it just looked too good to be true. Will watch chart and prob get back in at some stage

glad to hear it Mistress T ..... smells as if there could be much blood spilt in NY ..... have taken profit at HAWK for that reason

http://in.reuters.com/article/domesticNews/idINDHA8303620080618

Bangladesh power sector opens to private money
Wed Jun 18, 2008 5:28pm IST

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DHAKA, June 18 (Reuters) - Bangladesh plans to open its power sector to private investment to help it out of a long-running and deepening crisis, a government official said on Wednesday.

"A policy is being finalised to give private sector full support, which will enable them to invest even in the state-run power plants and make then more productive," said M. Tamim, special assistant to the chief of Bangladesh's interim government, responsible for power, energy and mineral resources.

Because of old plants, Bangladesh on average can produce only 3,200 megawatts (MW) of electricity, against an installed capacity of 5,200 MW, officials said.

"Over the next 20 years as we plan to become a middle income country by raising our economic growth to at least 10 percent from 6 percent now, the country will have to produce about 13,000 MW," Tamim told a meeting attended by senior officials, business leaders, representatives of development partners and energy experts.

Bangladesh plans to stop using natural gas for electricity generation after 2011, as it faces shortages of fossil fuel, another senior official said in the same meeting.

"The reserves of natural gas are depleting fast and the country is now facing up to 150 million cubic feet (mmcfd) of gas shortages every day," said Jalal Ahmed, chairman of Petrobangla, the government oil and gas agency.

Only 30 percent of Bangladesh's more than 140 million people have access to electricity, he said.

"The present per capita electricity consumption is 117 KWH (kilo-watts hour), nearly 6 percent of the world average," he said.

Natural gas is the prime feedstock for producing fertiliser, vital to raise grain production to ensure food security in the country.

At present 85 percent of electricity is produced by the natural gas. Because of the gas shortage, Tamim suggested using coal as a fuel for electricity generation.

Bangladesh has five coal fields with more the 2.55 billion tonnes of reserves, officials said.

"To meet the 300 times more demand for electricity we will require to invest up to $10 billion over the next 20 years," Tamim said.

He said entrepreneurs from Bangladesh will be allowed to invest 51 percent in state-run plants to modernise them, which will help to raise power generation by at least 2,000 MW.


terrytibbz - 18 Jun'08 - 22:04 - 6622 of 6638


this is what happens when you have an ex-world bank free market economist running bangladesh.

they privatise the power generation. the people running the power plants are now going to be required to source the fuel/ coal themselves, which implies no regulation of coal prices! therefore GCM should realise the Asian coal prices of $160 per tonne! there is also no question that they will realise the asian price for coking coal! at this prices the government gets $934m tax per annum on $160 thermal and $300 coking. at $200 thermal and $500 coking the government gets $1.3bn tax. 2007's Bangla tax take was a derisory $7bn! This year bangla's budget is $15bn spending!

if some people suffer from this higher price the government will use tax revenue to help them out.

Dr Tamin pushing the case for coal.

Extract from Financial express article today:

During the last three days Dr. Tamim repeatedly hinted at the gas, fuel price increase making his position clear in favour of the move.

FE Report adds: M Tamim said: "The government will not go for big investment in generating power. It will now go for PPP or will encourage the private sector to invest in power generation project."

The government will give priority to the industry, fertiliser and CNG filling stations for supplying uninterrupted gas. The alternative energy like coal will be popularised," Tamim, who was also a teacher of the Bangladesh University of Engineering and Technology (BUET), said.

Tamim said: "I strongly believe that the country will have no energy crisis for the next 20 years as there are adequate coal and probable gas reserves here. Present energy crisis, which is shorter one, will go in five years time as we have taken massive exploration programmes."


With the price of Oil and Gas rocketing the coal at phulbari is becoming the only alternative for feeding Bangladesh power stations.

--------------------------------------------------------------------------------
Coal policy draft sent to relevant ministries for opinions
Staff Correspondent
The energy division has sent the draft coal policy to eight relevant ministries for opinions on the finalisation of the draft.
The division, which completed finalising the draft policy on its part, sent the draft to eight ministries, including finance, environment and forest, agriculture, land, law and the National Board of Revenue on Sunday, sources in the division said.
The ministries have been asked to submit their opinions on June 24 before the division convenes an inter-ministerial meeting on June 26 to discuss the comments given by the ministries, they said.
Sources in the division claimed the division had not made any major changes in the draft policy, submitted earlier by the advisory committee, headed by former BUET vice-chancellor Abdul Matin Patwari.
The division dropped a provision off the draft, finalised by the Patwari committee, which said the reclaimed land would need to be handed over to the owner in the original form after completing coal mining.
Sources in the division claimed the existing laws did not support the provision of giving back the land to the owner after the government acquired the land. Besides, it will create complexities and scope of corruption as after 10 to 20 years of mining, many so-called owners will claim the land, observed a source.
One of the members on the Patwari committee, however, told New Age the land could be handed over to the owner if the government had the sincerity. Thousands of poor land owners will need to be relocated for mining. The people should have the right to get back the land. If the government owns the land, it will create scope for corruption, he said.
Citing the example of land acquisition for the Jamuna Bridge, he said the land was handed over by the government to an influential businessman. The people have not got back their land in the Jamuna Bridge area. Now what we see there is a resort for rich people, he said.
The division changed the name of the proposed company, Coal Bangla, to Khani Bangla so that other mines such as rock mine could be brought under the authority of the company.
The details of the mining method could not be immediately known. Sources in the division could not confirm whether any change was made in the recommendations submitted by the Patwari committee regarding open-pit mining.
The Patwari committee recommended operating an open-pit mine first to observe the viability of the method in Bangladesh before adopting the method for other mines.
The division, however, did not make any change regarding the bar on coal export, royalty rate and coal sector development committee.


http://www.newagebd.com/front.html#16

Hard-to-find coking coals price rockets as global steel demand orbits
Text Size
By: Keith Campbell
Published on 20th June 2008
Things, for steelmakers, go better with coke the coke concerned being, of course, the product used in blast furnaces and electric arc furnaces to produce iron and steel.

Coke is 90% carbon and is light, but strong it has to be, to bear the weight to which it is subjected in a blast furnace porous and, when heated, reactive. At the very start of the iron- and steelmaking process, coke fines also known as coke breeze are employed in the sintering of the iron-ore, which converts the irregular lumps (iron-ore fines) of the ore into larger pieces between 10 mm and 25 mm. This greatly increases the efficiency of the smelting process.

Long Post: Full Article..

http://www.miningweekly.com/article.php?a_id=136160

Energy Ministry finalises coal policy
Inter-ministerial meeting on June 26
SHAHNAJ BEGUM
The energy ministry has finalised the coal policy recommending formation of "Khoni-Bangla", a management body to oversee the country's mineral resources including coal, hardrock, lime stone, silica sand and others, an authoritative source told The Independent yesterday.
The energy ministry last week finalised the policy without making major changes in the draft policy prepared by country's renowned experts and sent copies to the ministries of forest and environment, law, land, finance, commerce, power, and NBR with a request letter to give their opinion and join the first interministerial meeting on June 26 following which it will be sent to chief adviser Dr Fakhruddin Ahmed for approval.
"The committee did not say anything about the coal extraction method. The issue should be coal field-specific. We simply brushed and trimmed it without touching the basic content of the draft except the land reclamation issue", a top official of the energy ministry told The Independent.
It may be mentioned that the committee suggested to the government to examine the pros and corns of open-pit mining and that the government should go for open pit on a limited scale. The policy has not mentioned anything on it.
It is learnt that the energy ministry in the policy suggested keeping the land reclamation issue under government's jurisdiction. However, the committee suggested to give the land to its owner. "20-30 years is a long time and the ownership may change in the meantime. Our observation is it would be a difficult task for government to identify the real owner. So we said that land would be kept under government jurisdiction and it would take decision," a top official of the energy ministry remarked.
A 29-member standing committee 'titled: development committee', comprising government officials, experts, business leaders and members of civil society would act as the highest authority to give policy directives to 'Khoni-Bangla' from time to time. "Khoni Bangla", would work under the energy ministry and the Bureau of Mineral Development (BMD).
It would be the authority to oversee coal exploration, marketing and investment through selecting method (open pit or underground mining) giving approval to Go-Private, Go-foreign and private -foreign ventures.
The country has a known reserve of 2.7 billion metric tons of coal but there is yet no specific policy on coal development, although there are some rules and regulations to lease out coal fields to foreign companies.
The main goal of the new policy is to ensure energy security by developing coal-fired power stations in the country. Though the country has five coal fields, four are commercially viable.
The government in 2007 formed the eight-member committee comprising Abdul Matin Patwary, Vice Chancellor of Asia Pacific University (president), Prof. Nazrul Islam of University Grants Commission, Prof. Badrul Imam, Nazrul Islam of IIFC, Prof. Mostafizur Rahman, Muqbul-e-Elahi, Major General Ismail Farooq Chowdhury and Ataus Samad. The committee at its first meeting suggested inclusion of Prof Nurul Islam of BUET and M.A. Zaman (re-settlement expert) in the committee and invited other experts from time to time to know their views. The draft coal policy was prepared by the IIFC last year, which was amended six times.
The policy suggested 6 per cent royalty for open-pit and 5 per cent for underground mining, but it suggested that fixing of royalty would be finalised by the government. Bangladesh Arbitration Act-2001 would be followed if any disputes arose.
To discourage export, the policy said whatever method was adopted to develop a coal field it would produce only that much which would meet the local demand. It said coal is needed to ensure the country's energy security first.
It may be mentioned that to ensure energy security for the next 50 years (at a rate of 8 per cent GDP growth), it needs to produce 41,599 MW of electricity by 2025. Aiming to slap conditions on coal export, the energy ministry upheld the committee's observation that the entire amount of the country's coal reserve is needed to produce electricity in future, as gas would be exhausted by 2015 if new discovery is not made.
However, it allowed a limited export of coal after ensuring the country's 50 years' energy security and said only that portion of coal could be exported which has no market here, and in case of 'cooking' coal, it could be exported but after making it 'coke' (a raw material use in steel making).




http://www.theindependent-bd.com/details.php?nid=86951

TR-1: notification of major interests in shares


1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:
GCM Resources Plc

2. Reason for the notification (please tick the appropriate box or boxes)



An acquisition or disposal of voting rights
X

An acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached


An event changing the breakdown of voting rights


Other (please specify):


3. Full name of person(s) subject to the notification obligation:
Morgan Stanley (Institutional Securities Group and Global Wealth Management)




4. Full name of shareholder(s) (if different from 3.):



5. Date of the transaction (and date on which the threshold is crossed or reached if different):
19/06/2008

6. Date on which issuer notified:
20/06/2008

7. Threshold(s) that is/are crossed or reached:
15%

Take immediate step to extract coal
Shamsul Haque

Eminent energy experts and prominent citizens have urged upon the government to take immediate steps for extraction of coal as it has already been proved across the world that coal is an alternate fuel. Eminent experts on energy and mining, geologists, environmentalists and prominent citizens spoke expressed their views at a seminar titled Geo-resources extraction arranged on June 18 at daily Amar Desh office on June 18 in the city.


http://phulbaricoal.wordpress.com/2008/06/23/take-immediate-step-to-extract-coal/