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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Draft natl coal policy awaits advisors nod
Posted by phulbarinews on July 7, 2008

M Azizur Rahman

The energy ministry has finalised the national coal policy, which will be sent to the council of advisers soon for their final nod despite opposition from the law ministry against adoption of it, officials said. We have finalised the coal policy and will place it to the council of advisers for approval very soon, Chief Advisers special assistant on energy issues Professor M Tamim has told the FE.

Refuting the law ministrys plea to draft an act instead of a policy to facilitate the process of coal extraction, Professor Tamim said a policy is a broader jurisdiction and deals with a variety of issues like environment, land, mines and minerals. Professor Tamim, however, said the law ministrys comments on the national coal policy would also be sent to the council of advisers along with the policy for their final nod.

Sources said the law ministry last week recommended adoption of an act instead of a policy pouring cold water on the energy ministrys years of efforts to get a national coal policy in place. The energy ministry kept investment proposals worth several billion US dollars on hold in last several years on the plea that the proposals would be considered after adoption of the countrys first ever-national coal policy.

Regarding the draft of the national coal policy as finalised by the energy ministry, Professor M Tamim said the policy has no major deviations from the recommendations of the advisory committee headed by former BUET vice chancellor Abdul Matin Patwary. The advisory committee in its report recommended that foreign companies be allowed to develop the countrys coalmines under a joint venture with a local coalmining company.

No foreign companies would be permitted to develop a coalmine independently, the draft of the national coal policy pointed out categorically. As is elsewhere in the world, coalmines in Bangladesh can be developed by applying either the open-pit method or the underground method, the advisory committee suggested. But the mining method should be determined on the basis of the geological structure and the reserve potentials, the committee observed.

A Coal Sector Development Committee comprising professionals from all walks should be constituted for smooth operation of coalmines and other relevant activities. The committee would fix the royalty rate of different coalmines considering mine-specific geological structures instead of the existing mining rules, in which the royalty rate has been fixed at 6.0 per cent for the open-pit mining and 5 per cent for underground mining, it said. The committee also recommended awarding licences for coal exploration from any coalmine through open tenders, though the existing rules say that the licences will be awarded on the first-come-first-served basis.

The government will follow the countrys existing Land Acquisition Act to acquire required land and compensate the displaced people from the mining sites to ensure smooth development of coalmines and its subsequent utilisation, officials said. To address the environmental and social issues, the government might adopt globally-accepted guidelines of equity principles, the draft of the national coal policy pointed out. Khani Bangla, an entity under the state-owned Petrobangla, would be given the responsibility to look into the developments relating to coal and other issues relevant to the countrys mines and minerals.

The advisory committee, however, had proposed formation of a separate company named Coal Bangla empowering it to monitor the coalmine development activities. There will be no option of coal export other than cocking coal in the coal policy. Cocking coal is a kind of coal, especially used in steel manufacturing plants. Setting up a coal-fired power plant at the mine mouth might be made mandatory for developing any coalmine under the national coal policy.

Source: http://www.thefinancialexpress-bd.info/search_index.php?page=detail_news&news_id=38966

July 7, 2008

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Shahiduzzaman Khan

Footdragging on the passage of the draft national coal policy continues with the law ministry withholding yet its much-awaited vetting. As a result, some important investment decisions are now facing a great deal of uncertainty. The law ministry is now suggesting that the energy ministry should formulate an act instead of a policy. In support of its contention, the law ministry said the existing Mines and Mineral Rules 1968 is an age-old act and it has not been amended as yet to give a boost to efforts for development of the coal sector. Some sections of the draft coal policy, the law ministry pointed out, contradict the existing rules. Under the draft national coal policy licences for exploration or extraction from any coal-field will be awarded through open tenders, whereas the existing rules say that the licences would be awarded on first-come-first-served basis.

Besides, the draft policy says that a proposed coal sector development committee will fix the royalty rate whereas the mining rules say that the royalty on coal extraction would be 6.0 per cent for open-pit mines and 5.0 per cent for underground mines. The existing rules have certain number of flaws and deficiencies that need amendment. But the energy ministry said that an act is necessary for a specific issue but the energy ministry was working to help promote development of the coal sector as a whole by formulating the national coal policy first. The ministry for the last several years concentrated on preparing only the national coal policy leading to keeping several billion dollar investment proposals, in abeyance. It was anticipated that adoption of the policy would give a strong and pro-active signal to initiating efforts, in reality, for large-scale development of the countrys coal sector.

Now the questions arise: why was the government silent for all these years about preparing an act first instead of a policy? Why the law ministry did not instruct the energy ministry to prepare an act at the first instance? Does it look good that the two line ministries, as it appears, should be at loggerheads over this issue? Will the hard labour of the energy ministry officials to prepare a draft coal policy for all these years go in vain? These are the pertinent questions that need to be answered. This sudden but and unpalatable decision has caused further setback to the already pending foreign investment proposals worth around US$ 5.0 billion to develop the countrys coal sector. The companies eyeing on adoption of the coal policy for their investments include UK-based GCM Resources (formerly known as Asia Energy), Indian business conglomerate Tata group, South Koreas Luxon Global and US-based Global Vulcan Energy.

Pending investment proposals with the Board of Investment (BoI) include a $2.5 billion project from GCM Resources, a $1.6 billion venture from Global Vulcan Energy, a $1.5 billion investment from Luxon Global and a portion of the $3.00 billion earmarked from Tata. Among the foreign companies, GCM Resources proposed in October 2005 the development of an open-pit coalmine at Phulbari with a 1,000-MW mine-mouth power plant. Before submission of the investment proposal, GCM Resources conducted a feasibility study on the Phulbari project at the cost of $18 million. Tata plans to spend a portion of its $3.0 billion investment proposal placed in April 2006 for developing the open-pit Barapukuria coalmine with a 300-MW mine-mouth power plant. Tatas proposal also includes investment in steel and fertiliser plants. Global Vulcan Energy signed a memorandum of understanding with the BoI in 2005 to invest $1.6 billion to develop a coalmine at Jamalganj and set up a mine-mouth power plant. The US company also proposed to set up two organic fertiliser plants in Bangladesh.

Luxon Global placed its investment proposal and signed a MoU with the BoI in July 2005 intending to develop a coalmine, a mine-mouth power plant, a fertiliser factory and a liquefied natural gas plant. Since the first such proposal was placed to the BoI in May 2005, the successive governments have been holding up the same on the ground of adopting a relevant policy first. In fact, the draft coal policy does not restrict open pit mining, as was initially demanded by some pressure groups. Instead, the policy identifies mining methods as technical issues that should be decided on the basis of technical viability and individual cases. Though the committee believes that quick action is required to tap the coal resources as the country will face a big energy crisis from 2015, its go-slow approach to foreign and private investment proposals will compound the problem further.

The draft policy says that if Bangladeshs GDP remains as low as 5.5 per cent until 2025, the country will need to generate 19000 megawatt of additional power. If the GDP growth rate rises to as high as 8.0 per cent, it would need 41000 MW of power. But at the same time, Petrobangla has said that production of gas which has been the key source for power generation will start to decline from 2011. This is where the countrys coal resources should play a role. The policy adds that to meet power demands in a GDP growth rate scenario of 5.5 per cent, Bangladesh will need 136 million tonnes of coal until 2025. If the GDP growth rate accelerates to 8.0 per cent a year, the country will need 450 million tonnes of coal. The countrys four existing coalfields of Barapukuria, Phulbari, Khalashpir and Dighipara can cater to this need until 2030 or so. Of these, only Dighipara is being mined at present.

The draft policy does not pay much attention to the scope and necessity for developing and harnessing alternative energy sources, including renewable ones. And it was not expected to do that. A national energy plan has to deal with all such issues. However, there is no denying that, coal can only be one ingredient in a countrys energy mix. Hence, the coal policy has to be an integral part of an overall comprehensive energy strategy covering all existing and potential renewable and non-renewable energy sources.

http://northbengalnews.wordpress.com/2008/07/07/for-ending-the-stalemate-on-passage-of-coal-policy/

Now the questions arise: why was the government silent for all these years about preparing an act first instead of a policy? Why the law ministry did not instruct the energy ministry to prepare an act at the first instance? Does it look good that the two line ministries, as it appears, should be at loggerheads over this issue? Will the hard labour of the energy ministry officials to prepare a draft coal policy for all these years go in vain? These are the pertinent questions that need to be answered. This sudden but and unpalatable decision has caused further setback to the already pending foreign investment proposals worth around US$ 5.0 billion to develop the countrys coal sector. The companies eyeing on adoption of the coal policy for their investments include UK-based GCM Resources (formerly known as Asia Energy), Indian business conglomerate Tata group, South Koreas Luxon Global and US-based Global Vulcan Energy.

Pending investment proposals with the Board of Investment (BoI) include a $2.5 billion project from GCM Resources, a $1.6 billion venture from Global Vulcan Energy, a $1.5 billion investment from Luxon Global and a portion of the $3.00 billion earmarked from Tata. Among the foreign companies, GCM Resources proposed in October 2005 the development of an open-pit coalmine at Phulbari with a 1,000-MW mine-mouth power plant. Before submission of the investment proposal, GCM Resources conducted a feasibility study on the Phulbari project at the cost of $18 million. Tata plans to spend a portion of its $3.0 billion investment proposal placed in April 2006 for developing the open-pit Barapukuria coalmine with a 300-MW mine-mouth power plant. Tatas proposal also includes investment in steel and fertiliser plants. Global Vulcan Energy signed a memorandum of understanding with the BoI in 2005 to invest $1.6 billion to develop a coalmine at Jamalganj and set up a mine-mouth power plant. The US company also proposed to set up two organic fertiliser plants in Bangladesh.

Luxon Global placed its investment proposal and signed a MoU with the BoI in July 2005 intending to develop a coalmine, a mine-mouth power plant, a fertiliser factory and a liquefied natural gas plant. Since the first such proposal was placed to the BoI in May 2005, the successive governments have been holding up the same on the ground of adopting a relevant policy first. In fact, the draft coal policy does not restrict open pit mining, as was initially demanded by some pressure groups. Instead, the policy identifies mining methods as technical issues that should be decided on the basis of technical viability and individual cases. Though the committee believes that quick action is required to tap the coal resources as the country will face a big energy crisis from 2015, its go-slow approach to foreign and private investment proposals will compound the problem further.

The draft policy says that if Bangladeshs GDP remains as low as 5.5 per cent until 2025, the country will need to generate 19000 megawatt of additional power. If the GDP growth rate rises to as high as 8.0 per cent, it would need 41000 MW of power. But at the same time, Petrobangla has said that production of gas which has been the key source for power generation will start to decline from 2011. This is where the countrys coal resources should play a role. The policy adds that to meet power demands in a GDP growth rate scenario of 5.5 per cent, Bangladesh will need 136 million tonnes of coal until 2025. If the GDP growth rate accelerates to 8.0 per cent a year, the country will need 450 million tonnes of coal. The countrys four existing coalfields of Barapukuria, Phulbari, Khalashpir and Dighipara can cater to this need until 2030 or so. Of these, only Dighipara is being mined at present.

The draft policy does not pay much attention to the scope and necessity for developing and harnessing alternative energy sources, including renewable ones. And it was not expected to do that. A national energy plan has to deal with all such issues. However, there is no denying that, coal can only be one ingredient in a countrys energy mix. Hence, the coal policy has to be an integral part of an overall comprehensive energy strategy covering all existing and potential renewable and non-renewable energy sources.

Source: http://www.thefinancialexpress-bd.info/search_index.php?page=detail_news&news_id=38530

http://northbengalnews.wordpress.com/2008/07/07/for-ending-the-stalemate-on-passage-of-coal-policy/

; 0

The downtrend would look at 150p

All hangs on news if good 5+ ... However A sea of red on my watch list today : (

CG for quick use of coal for electricity
July 8, 2008

ET Report

The caretaker government has decided to put major emphasis on extracting coal and installing coal-based power plant to meet the increasing electricity crisis and reduce pressure on coal. The decision came from the meeting of the council of advisers that discussed on fuel situation following the power-point presentation by Special Assistant to Chief Adviser Dr M Tamim Wednesday, relevant sources said.

The meeting has brought the coal issue to midterm importance category from long-term one to mobilise highest efforts for the sector. The issue could not be elevated to short-term importance category, as coal extraction and installation of power plant consume time, they said. The meeting, however, has asked the concerned special assistant to finalise the coal policy within shortest possible time and start woks in the coal sector. It was hinted that coal policy might get its final shape and endorsement within a week, sources said.
The government has already taken policy decision to release maximum gas from power generation for using in coal fired generation. The council of advisers reviewed the coal reserves position in the country and emphasied extractions of the resource to go coal for power generation. The country now experiences around 500 mw stranded power capacity due to gas supply limitation. A decision has been taken not to approve any new gas-based power plant from the existing gas reserves. The council also directed the power ministry to install some non-gas based short-term rental power plants in the Chittagong region under government funds to feed the power-starved port city as they could give power within the shortest possible time.

Dr. Tamim in his presentation showed that the port city will not get rid of load shedding soon as the power plants located in Chittagong cant produce power due to gas shortage, and due to power shortage the PDB could not feed the region through the national grid. The consumption of gas in the last fiscal was around 0.6 trillion cubic feet, although as per the master plan the demand for gas in the country should be 0.6 TCF in 2009-2010. It is learnt that Chief Adviser Dr. Fakhrudding Ahmed expressed deep concern at the power and gas crises in the Chittagong region and asked the power ministry to go for short-term rental plants to serve the port city, as all economic activities there almost ground to a halt due to gas and power shortages.

The government has already taken moves to install seven costly rental power plants, six of them gas-based, in the country but most of the power plants are yet to come into operation as the errant companies selected by the government missed deadlines several times. None of the plants, however, are located in Chittagong. It may be mentioned that despite having serious objections from the Power Development Board (PDB), the Power Division adopted the idea to implement the high-cost rental power plants at the fag end of the BNP-led coalition governments tenure.

Lately, the government has been planning to install the costly (it would be costlier as it would be non-gas based) plants again as it has no other alternatives, a meeting source said. Chittagong is running gas and power shortages. It is getting 40-50 mmcfd less gas than required. On the other hand, the average load shedding in Chittagong is 190 MW to 200 MW. The demand of electricity in Chittagong is 490 MW, a PDB official said. .The country at present is experiencing around 1,500MW of load shedding as the PDB generates around 3,200MW of electricity against a demand for around 4,700MW. Chittagong now faces electricity shortage of around 190MW against its demand for around 490MW while gas shortage in the city has been estimated at around 100 million cubic feet per day.Even if rental plants come into operation, the situation in Chittagong will not improve much as the Chittagong power plants like Raujan and Shikalbaha are facing gas shortage. Power from other parts of the country cannot be transmitted there as it will create voltage problems. Chittagong needs local power plants, said the source.

Tamim, however, apprised the meeting that the electricity situation in the port city would improve slightly after the Kaptai hydropower plant increases production.The meeting also asked the ministry to expedite the process to increase gas supply by enhancing the capacity of pipeline and completing work-over programmes on some of the wells in different gas fields


http://phulbariproject.wordpress.com/2008/07/08/cg-for-quick-use-of-coal-for-electricity/

Govt stresses coal as a fuel for electricity generation
Posted by phulbarinews on July 14, 2008

R Akter

The government plans to stop using natural gas for electricity generation after 2011, as it faces shortages of fossil fuel..

At present 85 percent of electricity is produced by natural gas. Because of the gas shortage, Tamim suggested use of coal as a fuel for electricity generation. Bangladesh has five coal fields with more than 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.

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, government oil and gas agency. Only 30 percent of Bangladeshs 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. 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.

Natural gas is the prime feedstock for producing fertiliser, vital to raise grain production to ensure food security in the country. Also government plans to open its power sector to private investment to help it out of a long-running and deepening crisis, official said. 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 Bangladeshs caretaker government, responsible for power, energy and mineral resources.

Source: http://www.weeklyeconomictimes.com/news-details.php?recordID=1326

Date: 13 July 2008, Bangladesh

Chart looks really bad. Going south again.

ok what ever you say but ...... chart looks up 2day to me !! yawn !

Draft coal policy goes to cabinet soon for approval Provisions for both open pit and underground mining
So far, six coal fields with a total reserves of 2.55 billion tons have been identified, mainly in northern region


The draft coal policy with options for open pit and underground mining is being sent this week to the cabinet division for government approval.Full compensation including rehabilitation of those affected by the mining was provided in the draft policy.(UNB) FULL STORY


http://newsfrombangladesh.net/

are you just playing with yourself on here smiler? and to think i took the time to register on your recs!

Nice of you to join me, !!!!!!!!!!!!!!!!!!! got your mail ; )) I do prefer the stockwatch and lay out on money am ; )

July 17, 2008


Bangladesh should mine coal before gas is depleted Expert
It is reported that experts from Bangladesh have asked Bangladesh to mine its huge coal reserves before its fast depleting natural gas reserves run out. They however urged the country to tap the resource carefully to avoid human tragedies associated with coal mining.

Bangladesh faces a serious energy crisis, with lack of gas to produce electricity. The crisis is set to worsen by 2011 when its gas reserves could run out and attention is increasingly turning to its vast coal resource.

It has already suffered a setback trying to mine coal in the northern Phulbari area, where Britains Global Coal Management Public Limited Company had to halt activities two years ago after violent protests by local residents and environmentalists, saying the project would displace at least 40,000 villagers and severely damage the environment. At least three people were killed and dozens injured in clashes with police at Phulbari in Dinajpur district.

Mr Ajoy Kumar Ghose a former professor of the Indian School of Mines during a Dhaka meeting attended by senior officials and representatives of development partners said that Phulbari is the crown jewel in coal inventory of Bangladesh and its development will help transform the economy of the nation. But the government should launch advertisement advocacy for assuaging the sentiments of project affected people so that development and execution of the project can be facilitated.


http://www.steelguru.com/news/index/2008/05/18/NDU4Njg%3D/Bangladesh_should_mine_coal_before_gas_is_depleted_%252526%2525238211%25253B_Expert.html

Bangladesh to cut gas supply to old power plants
Sat Jul 19, 2008 3:26pm IST Email | Print | Share| Single Page[-] Text [+] DHAKA (Reuters) - Energy-starved Bangladesh is to cut gas supplies to ageing power plants to ensure more efficient use of a scarce natural resource which is depleting fast, a senior official said on Saturday.

"There will be no gas-fired power plant in future, moreover the committed plants may not receive gas supply as the days of gas based power generation concept has ended," said M. Tamim, special aide to the head of the interim government, responsible for the Ministry of Power, Energy and Mineral Resources.

Bangladesh faces shortages of 250 million cubic feet of gas everyday and the gap between demand and supply is rising, he said.

Bangladesh has more than 100 power producing units with nearly 5,300 megawatts (MW) of capacity. But is barely able to produce 4,300 MW as almost one third of the units are very old, officials said.

Some plants are up to 40 years old and their generation capacity has declined by up to 50 percent, they said.

"The government has a vision to make electricity available for all by 2020 when the demand will be at 1,7800 MW, meaning Bangladesh will need to increase generation every year by 1,000 MW," said Quamrul Islam Siddique, an energy expert.

"Once we talked about gas exports, but now we are talking about gas import as for the last decade there was little effort to explore new gas reserves and new investments," Tamim told a meeting, attended by energy experts and senior officials.

The experts suggested using coal instead of more costly hydrocarbons as the country has more than 2.5 billion tonnes of high quality reserves in five coal fields.

"Most of the countries are now producing electricity by using coal including our neighbour India who is producing nearly 70 percent power by coal, while Bangladesh is producing only 5 percent by coal," Siddique said at the meeting

He advised extracting coal by open pit mining methods.

"It is unfortunate that despite huge coal reserves Bangladesh, due to lack of policy, is rather importing 3 million tonnes of high sulphur coal annually from India," he said.

He also said private sector and foreign direct investment in the energy sector to produce electricity to the desired level would require at least $7 billion of investment by 2020.

Tamim said coal-fired power plants require huge investment.

"To produce one megawatt of coal-fired electricity is required $1 million, so to produce 1,000 MW in each year will require $1 billion and to get it to the end user will need another $1 billion," Tamim said.

"It is not possible for the government alone as we have many other priorities including health, education and food production and for that we welcome private investment including foreign investment," he said

http://in.reuters.com/article/businessNews/idINIndia-34587920080719?rpc=401&&pageNumber=1&virtualBrandChannel=0

Special Assistant to the Chief Adviser Prof M Tamim yesterday called upon the political parties to reach a national consensus on energy related issues for ensuring energy security for all in 2020 in the country.

Dr Tamim said, no more gas-based power plant would be set up in the country as there is a shortage of the fossil fuel.

No more gas-based power plant to be set up in the country, he said while addressing a seminar titled Bangladeshs main challenges to meet future electricity demand.

Referring to the countrys chronic gas crisis that hampers the electricity generation, Dr Tamim said a team is now visiting the gas-based power plants to identify their efficiency level.

Terming the present gas crisis as a legacy of the past, Dr Tamim, a former professor of Petroleum Engineering of Buet, said only one gas field was discovered in the country in the last 10 years. So, the present government has to think about gas import.

He said the use of electricity is increasing day by day because of its cheaper price.

The Caretaker Government will hand over the power to the politicians immediately. For this reason, they would have understood about the energy security. If it was not possible to them, they can appoint experts for making plan in energy sector, he said.

Former Secretary Quamrul Islam Siddique presented the keynote paper while Mollah Amzad Hossain, Editor of the Energy and Power moderated the seminar.

Tamim said that it was not possible to ensure energy security without consensus of the political parties.

It is easy to criticise the failure of the government on energy related issues but solving the problem is too much difficult, he said adding, We have needed exploration of new gas field as well as coal mine development.

If we can ensure coal, renewable energy as well as improving efficiency, it will be possible to ensure energy for all in 2020, he hoped.

We have tremendous shortage of skilled manpower in the sector, Dr Tamim said, adding that we have needed knowledgeable, skilled manpower to ensure energy security in the country.

He said that the Government has not taken any plan to install gas based new power plant due to shortage of gas.

We would have cancelled the existing gas running power plant due to the same reason, he added.

He informed that the government is trying to solve the energy crisis.

The Government is trying to import gas due to shortage, he added.

We are taking step for producing electricity in private sector. Bangladesh Energy Regulatory Commission (BERC) will take initiative in this regard, he further said.



http://truebdnews.wordpress.com/2008/07/20/no-more-gas-based-power-plant-tamim-call-for-consensus-on-energy-related-issues/

Open Pit Mining Method is Most Suitable Option for Bangladesh
Posted by phulbarinews on July 23, 2008

Dr Raisuddin Ahmad

Senior geologist of LionOre Australia Pty Ltd, Dr Raisuddin Ahmad, has termed Bangladeshs coal sector a very promising one to accelerate the countrys national economy. Dr. Rais has been working in Black Swan Nickle, mine in Carlgorlley, Australia, one of the deepest nickel mine in the world. Born in Narsingdi, Bangladesh, Dr. Rais has obtained his higher degree in geology and mineral industry in Bangladesh, USA and Australia. He was involved in teaching profession for long in Australia. Dr Raisuddin is also a former fellow of Australias number one ranking National University said, Coal can be a useful and effective alternative source of energy to ensure the countrys future energy security and help developing the national economy.

But to utilize the countrys coal reserve potentials a bold decision and its immediate implementation are necessary, Dr Raisuddin Ahmed further stated to Energy & Power Editor Mollah Amzad Hossain during his recent visit to Bangladesh. Following are the excerpts.

EP: Bangladesh has huge coal reserves. But the country is yet to tap its potentials. According to you what are the bottlenecks the country faces and how it can be overcome?

RA: Bangladesh is now facing multifaceted problems like lack of necessary and realistic vision, policy-related complexities and weakness in taking appropriate and timely decisions. Overcoming these bottlenecks is intricate but not impossible. Firstly the governments vision needs to be changed. The government should be open, free from political confrontation and come out of conservative approach. Appropriate decision should be taken without fear and adequate measures should be taken for its quick implementation. The government must have to maintain strong monitoring especially in the case of social and environmental issues associated with coalmine development and immediate rectification is a must if a wrong is committed. An independent monitoring system can be considered involving eminent scientists, academicians of the country.

EP: How you see the prospect of coal sector in Bangladesh and how it can be utilized?

RA: Coal sector in Bangladesh is very promising. The government must not do any further delay in taking decision on coal sector development. Bangladesh is already lagging behind in utilizing coal resources. The global practice is that around 70-80 per cent of coal is used in coal-fired power plant in the coal-rich countries like USA, China, Germany and Australia. Despite having huge potentials Bangladesh has only one 250 MW coal-fired power plant, which is also struggling for regular supply shortages of coal due to application of wrong mining method in Barapukuria coalmine. The gas reserve of the country is depleting quickly with growing demand and Bangladesh doesnt have any alternative other than immediate extraction and uses of its coal resources. The preferred option for Bangladesh would be to use coal for base load power generation and save valuable gas resource for other productive uses.

EP: By the way you mentioned about Barapukuria coal mine, what should be the appropriate mining method in Barapukuria?

RA: Geologic reality and economic consideration should come first for selecting mining method. It is very much site specific. In Bangladesh, the main challenge for underground mining is to maintain the subsurface water bearing Dupi Tila layer overlying the coal seams. It is also a challenge for open pit mining. Thick coal seam and unconsolidated overburden materials are also factors in safe and economic mining of the coal resource. Considering the overall geological structure and soil condition of Barapukuria coalmine I must say open pit mining method is most suitable for its mining.

EP: There is a controversy regarding selecting mining method for Phulbari Coal Field. Which method you suggest appropriate for Phulbari?

RA: As the geological structure and soil condition of Phulbari is similar to that of Barapukuria, the open-pit mining method would be a suitable option for getting the maximum benefit out of it. But the authorities concerned must have to be careful about pollution, degradation of environment to maintain a natural equilibrium. Mine dewatering will have significant impacts on underground water regime in the area. But there are well-tested mitigation measures in the world to minimize the impacts of dewatering. RWE Mine, Germany is a great example of efficient subsurface water management. Bangladesh must have to implement those mitigation measures and experiences to ensure availability of water to the affected communities. The local people who will loss their land and other assets for open-pit mining must have to be properly compensated. After coal extraction, the affected lands must have to be reclaimed and rehabilitated for productive uses and should consider returning back to the owner or their successors. The mining should be done in phases to ensure that huge numbers of local people do not need to be rehabilitated at once. The local people must be given proper employment and other opportunities to maintain their livelihood with better status than before.

EP: Bangladesh has several coalfields. According to you how Bangladesh can go ahead to develop those.

RA: As currently Bangladesh has no expertise in coalmining, initially one or two coalmines should be developed with assistance from foreign companies. Foreign companies can develop Bangladesh coalmines under contracts. The remaining coalmines should be kept for local companies to develop. Manpower should be developed through necessary training. Provision should be kept in the contract with foreign companies to ensure employment of maximum number of Bangladeshi nationals. Arrangements should also be there so that local expertise develop seeing and experiencing the works of foreign companies.

http://phulbarinews.wordpress.com/2008/07/23/open-pit-mining-method-is-most-suitable-option-for-bangladesh/

lol thursday i wanted to add 2500 and it was the first day in a few it went up not having quite gotten to my target. i now have at least three, possibly 5 associates in this stock so it had better work out, not just for me!

I am sure it will its just slow progress but I do think with all the Positive news from bangladesh we are close now to a go ahead with a bit of Luck !!

Hi smiler and Terry - funny old share this..... would be nice to have something firmed up newswise as i really think this must be given the go-ahead in some form or another! ho hum - patience is a virtue!