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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never ever be surprised at the crap decisions governments make! ...... try the tax nightmare if you deal in Pakistan!

Anxiety confusing search for power?
Qazi Azad
5/15/2007

ENERGY Adviser Tapan Chowdhury is now considering the prospect of importing electricity from neighbouring Myanmar. It reflects his anxiety to overcome the debilitating chronic power shortage in the country.


http://www.financialexpress-bd.com/index3.asp?cnd=5/15/2007&section_id=5&newsid=61117&spcl=no

ADB says Bangladesh needs to improve infrastructure

May 15, 2007

By Ruma Paul

DHAKA (Reuters) - The Asian Development Bank (ADB) said on Tuesday that Bangladesh should improve its infrastructure, including transport and power, to sustain economic growth and attract foreign investors.


http://www.ndtvprofit.com/homepage/news.asp?id=298312

thats good to see, a 72k buy !! was that you cynic ! :))

Global Coal Management PLC
16 May 2007

PRESS RELEASE





16 May 2007

Global Coal Management
('GCM' or 'the Company')


GCM to invest in China Coal & Energy Corporation


Global Coal Management plc ('GCM' or 'the Company') announces that it has agreed
in principle to invest US$5 million in cash for a 5% equity interest in China
Coal & Energy Corporation ('CCEC'), an unquoted BVI company operating in Beijing
established for the purpose of acquiring coking and thermal coal projects in
China. The investment is subject to a successful due diligence currently being
undertaken.


CCEC has entered into several conditional Heads of Agreements pursuant to which
it may, subject to funding, acquire or joint venture various thermal coal
projects primarily in Shanxi and Inner Mongolia, ranging from operating
integrated coal mining and coke processing facilities to coal development
projects with resources of several billion tonnes each.


GCM will evaluate a number of these projects with a view to entering into joint
ventures on a case-by-case basis. With the exception of the integrated coal
mining and coke processing facilities, the remaining coal properties are at
pre-feasibility and exploration stage but appear to be substantial coal
resources which could be suited to large scale mining.


As these projects will require significant technical assistance, GCM have agreed
to provide management services to CCEC directly and will be guiding its
technical management and development. Mr Steve Bywater, GCM's Chief Executive,
will join the Board of CCEC.


Legally binding documentation in relation to this arrangement is expected to be
signed in the coming weeks and on signatures a further announcement will be
made.


'The proposed relationship with CCEC on these exciting projects in China
utilises the strong coal management expertise that exists within the Company and
continues our aim of becoming a global coal management company,' said Steve
Bywater, GCM's Chief Executive.


The Company remains committed to implementing the Phulbari Coal Project Scheme
of Development with the Government of Bangladesh and will advise the market on
any substantive developments as they become available.

With the world population adding 250,000 new people every dayor 1 million new people every four dayseven the minimum amount of electricity needed to sustain an exploding population is a heck of a lot of juice. And King Coal is back in style, particularly in China.



http://www.bitsofnews.com/content/view/5684/43/

China Coal Energy - Company Profile Snapshot

Company Profile: China Coal Energy Company Ltd
Ticker: 01898
Exchanges: HKG
2006 Sales: 30,227,000,000
Major Industry: OIL, GAS, COAL & RELATED SERVICES
Sub Industry: COAL PRODUCERS
Country: CHINA
Employees: 51230

Business Description
China Coal Energy Company Ltd. The Group's principal activities are the production and sale of coal and coke, manufacturing and sale of mining machinery and the design of mining structures, trading of other products, generation and sales of electric powers, production and sale of primary aluminum, transportaion services and agency services. Other activities include project management services, surveying services, telecom engineering, consulting services, real estate exploitation and management and the provision of maintainance services. The Group's activities are carried out in the Peoples Republic of China, Korea, Japan, Taiwan and the Asia Pacific Regions.


I think this is the one ??

Bangladesh: Lobbying Intensifies as Caretaker Govt. Drafts Coal Policy [


When the caretaker government is moving fast to formulate the national coal policy, both the campaigners of open pit and underground mining have intensified their efforts to pursue the policymakers.

According to official sources, some of the campaigners are even engaged in campaign at the international level to pursue their own policy.

They said Energy Ministry has planned to organise a national seminar to discuss the issue and get advice from experts to reach a conclusion that could help formulate a national coal policy as well.

An Energy Ministry official said the government is determined to reach a conclusion by the end of the current month on the ongoing debate on which methodology either the open pit mining or the underground mining is viable and appropriate for Bangladeshs coal sector.

While such an initiative is on, both the campaigners of open pit mining and underground mining have become active to pursue the policymakers in favour of their respective campaign.

The official sources said the planned national seminar would take place in the third week of the current month in Dhaka.

The countrys eminent energy experts, academicians, economists, geologists and miners will be invited to express their views and recommendations on the coal mining issue so that the government can properly formulate the policy protecting the national interest.

The Energy Ministry already invited some energy experts to hear their views in an indoor meeting last week.

Having held this indoor meeting, the Energy Ministry officials felt that there should be more open and wide-range of discussions on the issue so that the government could take a correct decision in choosing the mining methodology.

The Energy Ministry officials said they are hopeful of getting realistic views from experts on different issues from the seminar like royalty rate, safe coal mining methodology, coal export and optimum utilisation of extracted coal for power generation.

Meanwhile, the countrys civil society, NGOs and experts are divided on the issue as to what methodology should be the appropriate for coal mining in Bangladesh.

Some of them believe that open cast coal mining methodology would be the appropriate for Bangladesh as it is possible to extract 100 percent coal with the technology.

They are also of the view that the open cast mining methodology is cost effective and safe, and easier to handle.

This group of experts openly expressed their views in favour of open cast mining methodology in a recent seminar. BUET Prof Mohammad Tamim and some other experts were present.

Another group of experts believes that open cast mining methodology would not be appropriate for Bangladesh, as it is a densely populated country. They said huge population has to be displaced from the mining area in case of the open cast mining.

While the debate is going on, an NGO under the banner of Bangla Praxis has engaged in international campaign against open cast mining in Bangladesh.

Sources said a delegation of Bangla Praxis went to Japan to demonstrate against the open cast mining in Phulbari and other projects during the recent board meeting of the Asian Development Bank (ADB) in Kiyoto.

Professor Aanu Mohammad led the delegation and organised the demonstration in association with a Japanese NGO JECSES.

Friday, May 18, 2007




R E G I O N: US senators urge early polls in Bangladesh


DHAKA: Fifteen US senators including Democratic presidential candidate Hillary Clinton have urged Bangladeshs army-backed interim government to end emergency rule and hold elections.

In a letter to Fakhruddin Ahmed, head of the interim authority, they called for an announcement within the next two months of a roadmap towards free and fair elections to be held as soon as possible. Bangladesh has been under a state of emergency since January 11, imposed in the wake of deadly violence between supporters of former prime ministers Begum Khaleda Zia and Sheikh Hasina.

An election planned for Jan 22 was cancelled and all political activity banned. We are troubled that the indoor ban on political activity was not lifted, as planned, on May 8, the senators said. Moreover, we are concerned by the lack of progress towards free and fair elections in Bangladesh. Fakhruddin has said he hopes to hold an election before the end of 2008, while the Election Commission said it would not be rushed by what other nations were saying.

Khaledas Bangladesh Nationalist party (BNP) and Hasinas Awami league are also demanding an early election and the immediate lifting of the ban on indoor political activity. The US senators lauded the efforts of the government to address corruption, saying that it was critically important that any anti-corruption campaign be implemented in conjunction with Bangladeshi law and international standards.

Security forces have detained more than 160 key political figures including Khaledas elder son and political heir apparent, Tareque Rahman, in an anti-corruption drive. Hasina is facing charges of extortion and murders linked to political violence in Dhaka last October, weeks after Khaleda ended her five-year term as prime minister.

Country is suffocating: Hasina told party leaders at her home on Thursday that freedoms were being stifled. No one has any political right today. People cannot speak their minds. The country is passing through a spell of suffocation, private news agency bdnews24.com quoted Hasina as saying. The government denies the country has been turned into a police state and says politicians are free to talk.

Khaleda cancelled a planned trip to Singapore on Wednesday, for a second time in three days, after charges were filed against Arafat. The case against Arafat was aimed to prevent Khaleda from going abroad, because they (the government) feel she could exert more pressure on the government from outside, a close Khaleda associate said.

Apparently the government has taken a lesson from Hasina, the associate said on Thursday, referring to wide media and diplomatic exposure the Awami League chief received while in London recently. Hasina was stranded there on her way back from a holiday in the United States after the government banned her from returning. Hasina came back on May 7 after authorities lifted the brief ban following intense local and international pressure. reuters

ADB And The Case Of
Phulbari Coal Project

By Anu Muhammad

19 May, 2007

ADB push for Phulbari Project

At a press conference on March 27, the Asian Development Bank (ADB) country director in Bangladesh, Hua Du, expressed the ADB's eagerness for the quick decisions in favour of big Indian corporate giant Tata's proposals related with gas and coal, and the British based company Asia Energy's (AEC) Phulbari Coal Project (PCP). Both are for open pit mining. 'Business is business', she said categorically (Holiday, April 1, 2007).

It is important to note that about 70,000 people were gathered in Phulbari on 26 August 2006 to protest against the proposed open pit mining project. Law enforcers opened fire on them as they were returning home from the protest rally. Three persons were killed and hundreds wounded. Twenty of the wounded people were rendered permanent suffering, one is still in hospital with permanent disability. The action of the law enforcers, however, could not kill off the protest. More people took to the streets in a mass uprising. After days of relentless protest, participated by Bangalee, Adivasi (indigenous), women, men, senior and children, the government relented and entered into an agreement with the protestors represented by National Committee to Protect Oil, Gas Mineral resources, Port and Power.

That historic social contract clearly stated, among others,

1. 'Phulbari coal project will be scrapped and Asia energy will leave the country.'

2. 'No open pit mining will be allowed anywhere in the country'.

3. 'Steps will be taken for development and utilization of coal only after proper consultation with the people keeping national interest intact'.


Meanwhile, a committee of experts, formed by the government, submitted its report in which it observed that the Phulbari project should be cancelled in environmental, economic and legal grounds. However, as Hua Du's statement suggests, nothing can change the bank's mindset.


Why is the bank so enthusiastic to back Asia Energy on the one hand and remain indifferent to experts' opinion about, and the local peoples clear NO to, the project on the other? Why is profit for a company preferable to agencies like ADB even if it costs peoples lives, livelihood and environmental disaster although their written commitments say otherwise?

Bangladesh: Speedy Move to Finalize Energy Policy by Next Month [ Print ]
Gas sector
EB Report , published 18/5/2007

Page [ 1 ]

The draft energy policy will be placed before the advisory council meeting soon for seeking approval. The policy include with the coal guidelines. Under the technical assistance from UN agency United Nation Development Program the proposed draft has formulates.



"We will submit the draft energy policy before the advisory council within two or three weeks," said energy and power adviser Tapan Chodhury at the Meet the Press program organized by the Forum of Energy Reporters, Bangladesh (FERB), in the city on Friday.



Underlining the diversification of energy resources, the adviser said to enact the coal policy is crying need to ensure the countrys energy security in the coming years as the proven gas reserve is expected to deplete by 2012, which might endanger the energy security.

Power situation to improve by Sept 08
By Staff Reporter
Fri, 18 May 2007, 13:25:00

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Presenting a bleak picture of the country's power situation, Energy and Power Adviser Tapan Chowdhury yesterday said it would not be possible to generate any new electricity before September 2008.

The Adviser also said the country's power plants use huge quantity of gas to generate electricity.

"If the generation of electricity continues using gas, the existing gas reserves will be depleted by 2011," he also cautioned.

In such a situation, he said that the country's future option for alternative energy source would only be coal.

"If we don't have a new discovery of natural gas, then coal will be the only option," he told reporters at a Meet the Press programme.

Posted: Tue, May 22 2007. 12:10 PM IST
Money Matters

Coal is worlds fastest growing source of energy: ReportCoals share of total world energy may climb to 28% in 2030, from 26% in 2004

Coal is the worlds fastest-growing energy source as rising oil prices prompt users to switch fuels, the U.S. Energy Information Administration said.
Coals share of total world energy may climb to 28% in 2030, from 26% in 2004, the agency, part of the U.S. Energy Department, said in a report published yesterday. Consumption is growing an average of 2.2% a year. The fuel will overtake oil to become the largest source of carbon dioxide emissions by 2010, the report said.
With oil and natural gas prices expected to continue rising, coal is an attractive fuel for nations with access to ample coal resources, especially in coal-rich countries like China, India, and the United States, the report said. These three countries combined account for 86 percent of the increment in world coal demand by 2030.
Crude oil for June delivery traded at $66.35 (Rs2,695) a barrel on the New York Mercantile Exchange today and has more than doubled since the start of 2004. Prices of Newcastle coal have gained 33% in that period, according to McCloskey Group Ltd.
Petroleum and other liquid fuels will have a 34% share of global energy use in 2030, down from 38% in 2004.
Coal consumption will fall in Europe and Japan where natural gas and nuclear power are likely to continue providing significant amounts of electricity, the report said.

Bangladesh sees economic toll from political turmoil
Thu May 24, 2007 6:39 PM IST

By Serajul Islam Quadir

DHAKA (Reuters) - A drive to clean up Bangladeshi politics by the army-backed interim government could lay the groundwork for more sustained economic growth, but businessmen said it was also taking a toll on the economy in the short term.

Bangladesh has been under a state of emergency since Jan. 11, imposed in the wake of deadly violence between supporters of former prime ministers Begum Khaleda Zia and Sheikh Hasina.

An election planned for Jan. 22 was cancelled and all political activity banned as the government clamped down on corruption, detaining more than 160 key political figures in the process.

About $6 billion in foreign investment decisions are on hold until an elected government is in place, and the political uncertainty has slowed economic activity, businessmen said.

In addition, food prices are rising as Bangladeshis hoard supplies, partly because of the political uncertainty. The country has raised fuel prices, adding to inflation worries.

"We want to see corruption reduced and controlled, but at the same time we want to see the investment taking place," A. Gafur, executive director of American Chamber of Commerce in Bangladesh, said.

"The initiatives taken by the present government will in the long run help business and economy," Gafur told Reuters.

"People want to give time to this administration, but at the same time they do not want any waste of time."

The governor of Bangladesh's central bank, Salehuddin Ahmed, said on Wednesday the economy might miss some key economic targets.

He said economic growth might fall short of the 6.5 percent target in the current fiscal year to the end of June.

Inflation could also top a target of 6.95 percent this fiscal year and push into double-digits later unless the country organised more supply of staple food to alleviate price pressures.

Billions in investment proposals are on hold for projects in such sectors as energy, coal mining, fertiliser and steel.

"At the end of year 2007, Bangladesh may miss the target to secure $1 billion in foreign direct investment by up to 30 percent," said Mohammad Nazrul Islam, the head of the state-run Board of Investment (BOI).

S. Manzer Hussain, resident director of India's Tata Group, which has proposed investing $3 billion in the country, said the company was waiting for a return of an elected government before finalising a deal.

"We want to continue our discussion with the present government but prefer to get a decision from a political government," he said.

Britain's Asia Energy has a $3 billion investment proposal and the Abu Dhabi Group of United Arab Emirates has a $2 billion proposal, BOI's Nazrul said.

Fakhruddin Ahmed, a former central bank chief who heads the interim government, has said an elected government was possible before the end of 2008.

Still, Abu Ahmed, professor of economics at the Dhaka University, said Bangladeshis have hopes that the government's efforts will lead to a more prosperous future.

"Now the country is free from anti-economic growth activities, and people see light at the end of tunnel," he said

Dhabi Group keen to invest in energy sector
FE Report
5/26/2007

The United Arab Emirates (UAE)-based business house Abu Dhabi Group (also known as Dhabi Group) has expressed its interest to invest in Bangladesh's energy sector.
In this connection, a team led by Energy Consultant of the Dhabi Group Amjad Awan and Chief Executive Officer of Warid Telecom Muneer Farooqui met Executive Chairman of the Board of Investment (BoI) Nazrul Islam recently and handed over a formal letter, said a press release.
In the letter, the Group has requested the BoI and other government bodies to extend support for further investment in energy, hospitality and real estate sectors.
"Dhabi Group is encouraged and interested in bringing more private investment in Bangladesh and intends to pursue investment in energy sector, which would include power generation both gas and coal based, and service sector that will include hospitality and real estate businesses", the letter stated.
The team also discussed ways of further investments in energy sector, the prospect, and issues of bilateral interest, the release added.

From Phulbari to Coal Policy
Nuruddin Mahmud Kamal
5/31/2007

THE quest by the country's professional organisations to find a new and viable energy source-coal, has already proved itself. But a presumption that in-country resource cannot be mobilised for development is unacceptable. Some of our policy makers almost always prefer foreign investors participation in the energy sector. The scenario should change now for the greater benefit of the nation.
It is now known that the Ministry of Energy unwittingly bought ideas from some companies and their associates about anti-people draft coal policy (DCP) formulated by a private sector organisation, financed by the World Bank, called the Infrastructure Investment Facilities (IIFC). Indeed, in the past two years since December 2005, as many as six versions of the draft policy has been made each time with the inclusion of new contentious clauses that would favour a foreign investor. In essence, the draft coal policy is clearly export motivated and export biased. The anxiety of people accelerated in March 2007 shows a coal reserve of 1460 million tonne, white one previous version of May 2006 stated that with a reserve of 2700 million tonne of coal, the energy demand of Bangladesh will be much relieved. How, has not been discussed. However, the most critical factor in this case is the percentage of recoverable reserves and the method of mining. More importantly, unlike gas, mining of coal is fraught with serious dangers and challenges regarding the devastation that open pit coal mining can cause to the large site areas.
One may also be tempted to argue that these statistics about the reserves are part of a number game. These numbers are not backed by any empirical research, nor by an international certification(s). Worse still is that the proposed coal policy is a stand-alone type. No coal demand-supply forecast has been reflected even in the most recent DCP published in March 2007, nor has it been integrated with either with the National Energy Policy, 1995 (updated in 2004), or with the Gas Sector Master Plan, 2006. Consequently, it is unknown at this stage to what extent, the coal would provide an alternative to or supplement or complement natural gas for generation of electricity. This is not a dilemma, but a matter of calculation based on the estimated demand-supply of energy. The draft policy did not even care to reflect the outcome of a study, if there existed any.
Notwithstanding, what the happy-go-juicy Ministry of Energy has emphasised on is that with a view to ensuring the energy security of Bangladesh, almost eighty per cent of the coal produced would be exported! The story is that the draft policy has indicated that the production of coal would commence from July 2007 based on open-cut-mining. But no where in the document, the estimation of in-situ reserve or even the recoverable reserve has been shown. Nevertheless, it stated the reserve to production ratio is to be fixed at a minimum of 50-years. Based on that assumption as stated in the draft policy, within the next 10 years, from July 2007, 20 million tonnes per annum coal would be produced. Thereafter, in the next 10 years the production will be increased to 40 million tonnes per year, perhaps up to 2027 or may be up to 2030.
But for whom such a highly magnified coal production seems necessary? Certainly not for Bangladesh. For whom then? Incidentally, for generation of say 5000 MW of electricity one would require only 2.8 million (two point eight) tonnes of coal per year, based on Barapukuria 250 MW mine-mouth power plant. Now, multiply that number with any thousand megawatt capacity the country needs in the next 30 years. For generation and supply of 5000 MW electricity, one would need 14 to 15 million tonnes of coal per year, for 30 years the figure could be around 420 million tonnes. Do we posses this amount of proven and recoverable reserve of coal for meeting our future energy demand? If we do, would we have exportable surplus? Incidentally, the value of coal for 1460 million tonnes (as stated in the DCP) may be estimated at US$ 84 billion @ US$ 60 per tonne though the international market price is showing an ascending trend.
There is one other aspect. The proposed Phulbari project is being sponsored by an internationally unknown company -- the Asia Energy Company (AEC) --now appears to have changed its signboard like a defaulter in petty business under the country's trade licence. Interesting though, the AEC's proposal envisages an annual production of 15 million tonne, about 12 million tonnes of coal to be exported annually out of their estimated total reserve of 572 million tonnes at Phulbari. In simple arithmetic, within a span of 30 years, AEC plans to produce between 85 to 90 per cent of the said reserve and export eighty percent, perhaps to India. The under discussion draft coal policy has learned the trick from the AEC's Phulbari Proposal to formulate a nae scheme for Bangladesh. Apparently, Tata has also indicated to follow the same footprint, however through a new route.
Some curious citizens would like to know further : where did the draft coal policy originate from? It is not a Sherlock Holmes detective story, rather a simple deduction. When Asia Energy Company failed to pursuade the people to agree on their terms, the company turned toward its mentor-promoter the former energy adviser. He entered through the 'Exit' gate in the darkness and tried to call the shot. It was too late for both AEC and Tata. No wonder they all disappeared in late 2006. They have reappeared again in 2007.
Meanwhile, it become apparent that there would be a case of violation of the country's Constitution with reference to Article 7(1)(2) and Article 143, if the coal policy is approved as proposed. I humbly submit that I am no expert on Constitution nor the Acts/Laws emanated from them. But as a conscientious citizen, I suspect that the supremacy of the Constitution may be jeopardised if the authorities ignore the provisions of Article 7(1): "All powers of the Republic belong to the people and their exercise on behalf of the people shall be effected only under, and by the authority of the constitution". In the same manner, Article 7(2) states, "This constitution is, as the solemn expression of the will of the people, the supreme low of the Republic, and if any other law is inconsistent with the constitution that other law shall, to the extent of inconsistency be void." Article 143 states, "There shall vest in the Republic, in addition to any other land or property lawfully vested -- (a) all minerals and other things of value underlying any land of Bangladesh, b) all lands, minerals and other things of value underlying the ocean within the territorial waters, or the ocean over the continental shelf of Bangladesh etc.
In this perspective, it is inconceivable that people were not even consulted with regard to the transfer of "ownership" of mineral right and property. It is a shame that the politico-bureaucracy of the country never considered it necessary to discuss the provisions of law with the people in so far it relates to Phulbari coal mining proposal, and open-cut mining in particular. Consequent the local people violently protested, some even got killed. Yet, the previous political government pursued the issue. The bureaucracy as usual was busy in complicating the matter. They are doing the same thing even now.
Many coal mining countries in the world have their our coal mine Act. In this part of the world, the first coal Mine Act was formulated in the British India in 1900 that was updated in 1923 as the Indian Mine Act, 1923. This was followed, as a standard practice, by Mine Regulation 1926. After partition of India in 1947, the 1923 Act and Rules (1926) were amended. The Minerals Rules 1968 (of Pakistan) and subsequent amendments in November 1989 and 1995 respectively (in Bangladesh) were effected upon. Mine Rules and Regulations, made under the provision of Act were intended to operate within the framework of the same Mine Act. One very important institution built under law was the 'Inspectorate of Mines' to regularly monitor the activities of the mines. Unfortunately, neither a Mine Act exists in Bangladesh, nor an inspectorate of Mines. Yet the present bureaucracy wants a coal policy approved soon. There are many other nitty-gritty details, even many missing issues without which a policy normally can not be considered. Then, why the proposal is being pushed ahead for approval?
Coal, as we all know, is a dirty fossil fuel. It has become dirtier because of involvement of a debatable company -- Asia Energy. Now Tata is also trying to sneak in under similar conditions. With the change of a corrupt political regime, these cunning companies were manoeuvring alongside the bureaucracy to have the polluted sixth version (March 2007) approved by the CTG. This version also has not incorporated any clause about liabilities and penalties on the investors, be that local or foreign. The people already gained many nightmare experience in the energy sector in the past several years that has resulted in huge ecological and financial loss of the country's resources.
The royalty issue aside, the government should have considered profit or production sharing, joint venture or even a service contract for coal production, however keeping in view the concept of ownership of the mineral with the people. Otherwise, it will be violation of the supreme law of the country. Not a word of caution, but a suggestion, we would urge upon the Energy Advisor not to pursuer such foreign investor-driven Energy Policy in 2007. The proposed coal policy be made public. Let me reiterate : the proposed policy can not be decided in isolation, in secrecy and with foreign companies demands on mind. Instead, the coal policy has to be an integral part of a comprehensive energy strategy, and there exists one updated energy policy anyway.
(The writer is former Chairman of Bangladesh Power Development Board)

















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Govt may adopt modified NEP before approving coal policy
M Azizur Rahman
6/1/2007

The government now prefers adoption of a modified National Energy Policy (NEP) before approving the proposed National Coal Policy (NCP) to utilise the country's energy potentials and ensure energy security in the coming years.

The Energy and Mineral Resources Division (EMRD) of the Ministry of Power, Energy and Mineral Resources (MPEMR) has already obtained a draft NEP prepared with the assistance of the United Nations Development Programme (UNDP), a senior EMRD official told the FE.

"The new NEP will be treated as the guideline for utilisation of the country's energy resources, including that of coal, in a planned way," said the EMRD official. The NCP that outlines future consumption of the country's huge coal reserves will be adopted after making the NEP effective, he said.
The EMRD has already completed scrutiny of the draft NEP, which is expected to be approved within a month.

If approved by the Advisory Council, the new NEP will replace the existing NEP adopted in 1996. Sources said the new NEP is targeted to ensure energy consumption for sustainable economic growth so that the country's energy resources are utilised properly and the economic development activities of different sectors are not constrained by energy shortage.

It has also outlined a target to ensure optimum development of all the indigenous energy sources and sustainable operation of the energy utilities.
The updated NEP is set to ensure rational use of energy sources and encourage public and private sector participation in the development and management of the energy sector.

The energy policy will also ensure reliable supply of energy to the people at a reasonable and affordable price and develop a regional energy market for rational exchange of commercial energy to ensure energy security.
Despite having multiple sources of energy such as coal, bio-gas, solar-energy, wind-energy, hydro-power and renewable energy, the country is now dependent on natural gas as the main indigenous non-renewable primary energy resource.
Natural gas is the main source of commercial energy and plays an active role towards economic growth of the country and it accounts for about 70 per cent of the country's commercial energy supply.

Due to over-dependence on natural gas, the country's gas reserve is depleting fast, the EMRD sources said.
According to the EMRD, the country's present proven reserve of gas is 8.39 trillion cubic feet (TCF) as 6.8 TCF has already been extracted over the past 50 years from the original reserve of 15.19 TCF in its 22 gas fields.
If proven and probable reserves of around 14.4 TCF are taken together, the country's gas stock will be emptied by 2015, the report pointed out.
The country will need a further 24 trillion cubic feet (TCF) of gas and investment worth US $ 7.7 billion in the next 18 years up to 2025 to achieve an average annual economic growth at seven per cent, said a senior EMRD official.

The modified NEP will help reduce over-dependence on natural gas for commercial use.

Besides, according to Geological Society of Bangladesh (GSB), the country has high quality coal reserves of over 2.7 billion tonnes, equivalent to 70 TCF of gas, which is five times more than the country's proven gas reserve of 14 TCF.
But due to inadequate policy measures, the government is now forced to import coal from neighbouring country to run the lone coal-fired power plant at Barapukuria in Dinajpur.

Further progress:

Energy division plans to form
advisory body on coal policy
Staff Correspondent
The Mineral Resources and Energy Division plans to form an advisory committee to scrutinise and appraise the draft coal policy to avert controversy over the coal export issue and mining method that. The controversy has been raging for two years, delaying the finalisation of the policy.
Energy adviser Tapan Chowdhury has short-listed eight respected people of the civil society including academics, professionals and journalist as members of the committee.
Sources in the division, however, said that the only two academics and professionals among the eight people have experience in dealing with coal-related issues and the rest of them have little or no experience.
Noted energy expert, Professor Nurul Islam of the Bangladesh University of Engineering and Technology, who submitted a number of recommendations on the coal policy, most of which were adopted in the draft, was not included in the list.
Tapan told New Age on Thursday that they were yet to finalise the list of the committees members. We will soon finalise the names and will invite them to be a part of the committee on coal policy.
When asked why they had not included Professor Islam, he replied, He has already given his recommendations, many of which were incorporated in the policy.
The energy divisions committee on review of draft coal policy, headed by additional secretary Wahidunnabi Chowdhury, continued to be reluctant to include a recommendation of Professor Islam that the government take up a pilot project on the environmentally disastrous open-pit method of mining.
Professor Islam recommended that the proposal Coal Bangla, an organisation like Petrobangla, should take up a pilot project with government funds to extract coal by applying the open-pit method to find out whether the method is viable in a geographically small country like Bangladesh which cannot afford to lose productive farmland. The open-pit method will displace more than a hundred thousand poor people and make farmland that yields three harvests a year agriculturally useless, according to certain well-informed people.
He recommended that the foreign companies be allowed to extract coal by using the open-pit method if the project is successful.
Till the pilot project is completed, foreign companies should only be allowed to extract coal by using the underground mining method, he recommended.
Energy officials, however, were reluctant to include the provision for a pilot project with government fund as they claimed that the government would not be able to provide the huge investment that is needed for operating an open-pit mine.
A number of foreign companies, including Asia Energy and the Tata Group, want to extract coal in Phulbaria and Barapukuria by using the open-pit method of mining, which many energy experts believe will destroy the environment and make fertile land totally unproductive.
The division has so far included about 90 per cent of the recommendations made by Professor Islam in the draft coal policy.

UPDATED: 21:35, June 07, 2007
Bangladesh to realize self-sufficient on power by 2010



The Bangladeshi government has set a target to generate sufficient electricity by 2010 to reach a level where there will be no load-sheding in the country.

Finance Advisor of caretaker government MD. Azizul Islam said this when announcing fiscal year of 2007-08 budget Thursday.

Islam said although the demand for electricity increased manifold during the past few years, generation did not increase correspondingly.

When the summer comes starting from March, Bangladesh has been facing serious shortage of power. In the capital Dhaka, many places have a load-shedding of around five hours a day. In the districts, load-shedding hours are even more.

The Energy and Power Advisor Tapan Chowdhury said earlier there will be no new electricity generation before September 2008.

Global Coal Management PLC
08 June 2007

Global Coal Management Plc



Further investment in GVM Metals Limited


Global Coal Management plc announces that on 07 June 2007 it acquired a
further 3,100,000 shares in GVM Metals Limited at a cost of 930,000 and that it
now holds an interest of 20,300,000 shares, 10.33% of the issued share capital
of GVM Metals Limited.



08 June 2007