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/

"

RNS Number : 4229V
GCM Resources PLC
09 July 2009

















TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi






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

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


An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments


An event changing the breakdown of voting rights


Other (please specify):




3. Full name of person(s) subject to the
notification obligation: iii
HSBC Holdings Plc

4. Full name of shareholder(s)
(if different from 3.):iv
HSBC Bank Plc

5. Date of the transaction and date on
which the threshold is crossed or
reached: v
8th July 2009

6. Date on which issuer notified:
9th July 2009

7. Threshold(s) that is/are crossed or
reached: vi, vii
From 10 % to 9%





8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type of
shares


if possible using
the ISIN CODE
Situation previous
to the triggering
transaction
Resulting situation after the triggering transaction

Number
of
Shares
Number
of
Voting
Rights
Number
of shares
Number of voting
rights
% of voting rights x

Direct
Direct xi
Indirect xii
Direct
Indirect

GB00B00KV284
5,133,280
5,133,280
4,879,230
4,879,230
N/A
9.55%
N/A




B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financial
instrument
Expiration
date xiii
Exercise/
Conversion Period xiv
Number of voting
rights that may be
acquired if the
instrument is
exercised/ converted.
% of voting
rights















C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financial
instrument
Exercise price
Expiration date xvii
Exercise/
Conversion period xviii
Number of voting rights instrument refers to



% of voting rights xix, xx

















Nominal
Delta









Total (A+B+C)

Number of voting rights
Percentage of voting rights

4,879,230
9.55%





9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable: xxi




N/A




Proxy Voting:

10. Name of the proxy holder:
N/A

11. Number of voting rights proxy holder will cease
to hold:
N/A

12. Date on which proxy holder will cease to hold
voting rights:
N/A





13. Additional information:

None

14. Contact name:
Richard Brimelow

15. Contact telephone number:
0207 290 1630

mentioned this before when the interim govt were running office that they will implement phulbari go-ahead and award it to gcm,was informed of this by a bangla army commander,the information eventually turned out wrong,and the excuse given to me was that they were on the verge of inforceing this plan but however decided not to and thought it better to wait for an elected govt to make this decision.This was round about july of last year.now however this commander has again assurd me that the hasina led al awami are definately gonna grant the go-ahead either in this month or the middle of next month as bangladesh has to get phulbari moving asap for its own survival.this is what ive been told by a very close friend of mine whos a relative of this commander.I personaly im not holding my breath but the friend of mine is however totally confident and doesant doubt the commanders honesty or integrity and is recently buying like crazy at the mo,me i must admit i have topped up a little but still have the same amount of shares from the last time,so still have a good few.This time i hope the guys right because this is turning out to be a bit of a joke now,its just dragged on for far to long.Anyway this is what ive been told but good luck to all holders and lets hope the good old commander proves right this time.. all the best

Possible news leak, up 20% at the moment, when this one moves it has been known to fly, then spend the next few months falling back.

30% up, last trade 90p

from another board
Here is the full article.


Energy Bangla Exclusive: Hasina Needs Convincing Information on Coal Mining
Engr. Khondkar Abdus Saleque
Friday, 09.18.2009, 09:38am (GMT)



Issues and options concerning coal mining in Bangladesh was presented to Prime Minister Sheikh Hasina by Petrobangla and EMRD on Wednesday (September 16, 2009). The hour long discussion was also attended by the following government policy makers .

Finance Minister AMA Muhit, Energy Adviser Towfiq Elahi Chowdhury, Finance Adviser Dr Moshiur Rahman, Land Minister Mustafizur Rahman, State Minister for Energy Brig Enamul Huq, Parliamentary Standing Committee on Energy Ministry Chairman Subid Ali Bhuiyan, Energy Secretary Mohammad Mohsin, Power Secretary Abul Kalam Azad.

The meeting was due to witness a comprehensive presentation on overall situation of energy sector. Due to other commitments PM could not commit enough time for the meeting. Before PM arrived the Finance Minister and the Finance Adviser initiated discussion on coal mining strategy.

It was not Petrobangla Chairman or Director (Operation & Mines Minerals) it was Murtoza Faruq Chishti, General Manager (Planning and Monitoring) Petrobangla who made the all important presentation on coal. His presentation summarized recommendations of the June 09 brainstorming with Non resident Bangladeshi Professionals and Academicians on draft coal policy. A brief on Phulbari coal mining by Asia Energy was also presented. It was told that Phulbari Coal Mine is the only mine which can be developed now. Asia Energy using reputed International Consultants carries out extensive studies of Phulbari coal resources and submitted a comprehensive Scheme for Development to Government for it to review and approve in December 2004. Bangladesh Government was contractually obligated to approve it by Early 2005. With proper justifications and supported documents Asia Energy proposed for an open-cut mining. However, the government did not take on it in 4 years. . PB presenter proposed that the government should take decision as soon as possible as coal is urgently required to fuel power generation to confront present and emerging power crisis. But during or after presentation the participants did not get make any comment on Asia Energys Phulbari projects.

However, Honorable Member of the Parliament from Phulbari area and State Minister for Land Mr Mostafizur Rahman Fizar commented: I know local sentiment. We are doing underground mining in Barapukuria. Mine subsidence has been initiated and people are already suffering there. In Phulbari area, would be affected people will not oppose mining if they get proper compensation and they are rehabilitated properly. Whoever does it, Government should convince the people about the ultimate benefit of the people of the region. I witnessed open cut mining in Germany. I have also witnessed rehabilitation, resettlement, land reclamation, land refilling, water and environmental management there. If everything is accomplished to that standard, I do not foresee any major in our case as well.

Finance Minister said, We have energy crisis. We need to extract coal. We must not delay and leave it buried. I did not know detail about it and now I know.

Finance Advisor to PM Dr Moshiur Rahman participating in the discussion said India, Australia, Germany is doing open cut mining and all associated impacts are appropriately mitigated there. I think open cut is also possible in Bangladesh and it has to be start without delay. Or else present energy crisis will further deepen.

Energy Advisor to PM DR Tawfiq e Elahi Chowdhury opined, we are acquiring land and rehabilitating and compensating people for Barapukuria. We can go for open cut on the other side of Barapukuria as well.

The PM made brief comments for about 5-6 minutes on overall energy situation. She said we would not take any decision on coal mining today. I need to know more about it. Especially I need to know about environmental impacts management, and also how we will rehabilitate affected people and how related issues will be addressed.

PM also said, I accept the fact that we can extract coal. Coal will help us confront power crisis. And there is no alternative to it. We need to finalize the coal policy as well. I understand that Germany opted for open cut method. But we have densely populated area unlike them. So we will have to be additionally careful. I would not take any decision today. We must extract coal. But before we take decision we need to know more associated impacts of open cut mining and mitigation measures. How people will be rehabilitated. How we can provide better life for people there. I would like to hear from you soon. I will decide after that on coal policy. And we will decide how we will extract coal.

It is encouraging that Prime Minister and other senior government Energy Think Tank have come to realization that Domestic coal is the most feasible option to help assist redress of serious energy crisis Bangladesh is going through. Limited discovered natural gas resource is progressively depleting. It will take a while to explore and exploit new petroleum resource in onshore and offshore frontiers or further develop discovered resources. Bangladesh does not have capability to rely on imported fuel to generate power for a long time. Short time contingency actions will drain out significant resources from government exchequer.

We have about 4billion ton high quality mineable coal. All the discovered coal resources are concentrated within 100Sq miles in the greater Dinajpoor and Rangpoor area. Our geology, depth and thickness of coal seam do not support any method other than strip mining to extract most of the precious resource, we have sour experience in Barapukuria. Investing about 3400 Crore Taka in suppliers Credit we may finally extract less than 10% of coal in place. Mining in any other phase after completion in the present phase can be extremely hazardous. A recent visit of a practicing non resident coal miner surfaced various safety concerns and technology limitations of the under operation mine. Ministers and policy makers were thoroughly briefed about it in recent NRB brain storming. There was scope for Government to discuss in depth all aspects of Phulbari Mining with informed NRB professionals .But for reasons unknown beauracracy prevailed. Information on Phulbari mining was carefully shielded from NRB group. Petrobangla and EMRD played cat and mouse game.

Asia Energy has a signed contract with sovereign government of Bangladesh. Either party has specific obligations to perform under the contract. Government must not have fielded the contractor to site without approving Scheme of Development. Government departments must have approached to the communality and carry out required community consulation works. That would have eliminated the scopes of the opportunists to misguide community and hatch conspiracy. But anyway if any neutral person audits the present status of AEC and Phulbari mining only defaults of Bangladesh government will surface. The probable damage of Government is cumulating. There is no logical scope to terminate the contract with AEC as their default can not be established. There are issues which can be renegotiated. All the technical documents they submitted may be examined by accredited Mining consultants. Issues like export provisions and royalty limit can be revised. But for the sake of Bangladesh interest Mining at Phulbari must start soon.

People have voted government to power to redress their sufferings. It is alright government is committed to safeguard welfare of the people. But when 150 million people is suffering from acute energy crisis Government can not have the luxury of keeping its fortune buried for ever.

Prime Minister is very right. She wants to be absolutely convinced about management of impacts of surface mining (water Mangement), relocation and rehabilitation of would be affected people. Wonder why EMRD and PB could not respond to Prime Ministers queries. Have any of our policy makers read all the technical documents those Asia Energy submitted with Scheme of Development? Can Secretary EMRD or Chairman PB explain how water management has been proposed or how rehabilitation of the surface mining area will be done to return these to original or better state? Two reputed Australian Consulting Companies which do all works for top mining Companies ( GHD and SMEC) BHP Billiton & Rio Tinto have done all require studies in Phulbari . We examined all documents as our homework for NRB brain storming. But we were not allowed to discuss those or rather we thought it not too as Government did not provide us those documents officially. We were told PB our contact point was not custodian of such documents.

Time is fast running out. Wise people make mistakes but learn from mistakes. Delaying on unnecessary coal policy will prove counter productive .No civilized nation can even imagine a country like Bangladesh which relies so heavily on its own energy resources to fuel power generation can waste 4 years sitting on unnecessary coal policy formulation and get engaged in useless debate on mining methods. We hope PM will be wise enough to order immediate commencement of mining to extract maximum resources ensuring proper environmental and social safeguards.


aja5 - 18 Sep'09 - 12:09 - 619 of 620

up we go again

Thanks Wiz, I have a few of these in the long term draw. I believe it will happen, but have not planned how to spend my gain because I'm not sure how old I will be by then !!

Aye very true, I have been in this in & out for 3 years, It will happen one Day its just a mater of when ! One to skim if your in Profit !!

chairman buys at .89p price up

wots happening?

Not sure wots happening, but it is still happening today. These were high on my list to sell, but this alone will make me hang on a little longer, again !!!

same here - but when i came to sell there was a 10% spread so I said no way!!
I still want to get rid tho.... interesting movement....

We may have lift off, 109 at the moment up 11% today, but this has happened before, be nice if we could hold above 100 this time, good luck all.

AYE it has more than a few times !! ; )

Whats the news or is it just sympathy with the general market?

Could be the permit on the way and if so,"well"?
cyril

it has always been touch and go, if or when but there is a hell of a lot of good Coal and IMHO its just a mater of timing for the Bangladesh Government. I still say one to watch ; ) as well as polo ??

Serious action here,for anyone wondering why,this might help?

GCM could have a good day tomorrow:

Govt may ask Asian Energy to drop export provision

The government is considering holding final talks with Asia Energy for development of Phulbari coal mine having an extractable reserves of 572 million tonnes of coal, enough to ensure the country''s energy security for about 30 years.
The Asian Energy acquires the right for conducting survey on Phulbari coal mine from BHP Minerals, an Australian-base coal company, during the last 1996-2001 tenure of Awami League government.
After completion of the survey, the last BNP government allowed Asian Energy for conducting feasibility study, which was submitted to the government according to the agreement dateline. But all the successive governments could not decide on the issue as there was a movement against the involvement of Asian Energy in Phulbari coal mine development.
The mode of extraction of coal was a focal point of the movement. In its feasibility study the Asia Energy opted for open-cut mining method, which would cause huge socio-economical and environmental losses.
The command area of the Phulbari coal mine is around 6000 hectares of land, which included rural homestead land, agricultural and urban land. According to the Asian Energy feasibility studies, more than 40 thousand people will have to be displaced if the open-cut method is applied for the mine development. Experts, however, disputed with the Asian Energy figure. According to them, more than one lakh people likely to be displaced.
A committee headed by Prof. Nurul Islam of Bangladesh University of Engineering and Technology could not agree about the application of open-cut method. The committee, however, suggested having a pilot project on the open-cut method. Suggestions have been made for opting the underground method, which would reduce social and environmental vulnerability.
But the underground method has been considered as non-viable. It was told that only 10-15 per cent coals out of the total reserves could be extracted if the underground method is applied. There was no national consensus on the open-cut or the underground method, which forced the last BNP and caretaker government to shelve the Phulbari coal mine development issue.
After the installation of the grand alliance government a conference of the non-resident Bangladeshi coal mine experts was held, which was sponsored by the energy division. In the said conference most of the NRB experts opined in favour of the open-cut method. The NRB experts, however, opposed the idea of coal export from the country because it would endanger the country''s energy security.
The government is now conducing road shows in the capital of the western countries for attracting the foreign investment in the country''s energy and power sector development. Questions arose in all such conferences about the government indecision on the Phulbari coal mine development, which prompted the government to reopen the Phulbari coal mine issue with the Asian Energy, the source said.
The government may go ahead with the Phulbari coalmine issue with the Asian Energy if the later agrees to drop the coal export provision from the memorandum of understanding (MoU) signed between the government and the Asia Energy.

cyril.

This one is looking very positive again today, glad I didn't sell in Jan as I mentioned before, 119 now.

possible breakout time, DYOR. (this has happened before). 130 earlier today.

All alone on this one I think, but just in case anyones lurking, someone just paid 145 for 5000, onwards and upwards, DYOR.