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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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.

Pushed through the 150 now, lots of positive news coming out on the energy crisis in bangladesh, 160 now. DYOR.

More news out over the weekend pushing this towards 200p, 190 now. If the Bangladesh Government give the go ahead for the Phulbari mine this will go a lot further. DYOR

AYE been in this for a long time >>>>> Good to see some positive vibes again, one to watch

Blasted through the 2 level, I expected a couple of tests at that level. Under 80p at the beginning of the year, 200% gain now at 240p this morning. Plenty more to come if the Phulbari mine gets the go ahead, if it doesn't the coal is still in the ground for another day. DYOR

bangla is about as corrupt as pakistan, so it depends whose palms they have to grease and how heavily