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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Darradev, I remain hopefull, I have been buying on the dips over the last 9 months but it will be an interesting few weeks ahead !

Smiler, been in with aen/gcm for a couple of years been watching the situation not sure which way this will go any ideas

We are dealing with bangladesh !!!! but they do need it so I remain hopefull but time will tell I guess . It strikes me that given the possibility that GCM will at least quadrupple in value on such news, to me it is a decent gamble given that with there other investments the support level is around 80/90!.

Interesting announcement; a modest 'positive' on the view at least one director is taking, assuming he retains the shares. Implicitly he thinks it less likely he will be able to buy GCM shares in the market near 75p in due course:(from the darker side)

Global Coal Management PLC
22 June 2007

GLOBAL COAL MANAGEMENT PLC

DIRECTOR'S DEALING

Global Coal Management PLC ('the Company') wishes to advise that William
McIntosh, an executive Director of the Company, has exercised options totalling
25,000 new Ordinary shares of 10p each at a price of 75p which were granted to
him in August 2004.

Mr. McIntosh now retains a beneficial interest in 25,000 Ordinary Shares which
represents 0.05% of the current issued capital of the Company and he still
retains 25,000 options exercisable at 75p.

The new Ordinary Shares will rank pari passu with the existing Ordinary Shares
of 10p each in the Company and trading of these shares on AIM is expected to
commence on 27 June 2007.

The total number of Ordinary Shares in issue following this issue is 48,806,024.


22 June 2007

Sat. June 23, 2007


Coal -- the energy resource for 21st century
Dr. Rafiqul Islam

World's population is expected to reach over 8 billion by 2030, from its current level of 6.4 billion and consequently global energy demand will grow by almost 60 percent by 2030 and rise to 16.5 billion tones of oil equivalent per year.

Fossil fuels and in particular coal will meet up this challenge in future. Nuclear energy though provides a significant proportion of energy in some countries, but in general it faces serious public opposition.

Renewable energies are growing fast, but make up only a small part of global energy production -- the International Energy Agency (IEA) predicts that by 2030 only 14 percent of total energy demand will be met from renewable sources. In fact its not wise to depend on a single source of energy.


Coal can play a unique role in meeting the demand for a secure energy supply. Coal is globally most abundant and economical as well of all fossil fuels, which can be used for both power generation and industrial applications.

The production and utilization of coal is based on well-proven and widely used technologies. Coal faces environmental challenges. However, research efforts into improving the efficiency of coal fired electricity generation and technologies for carbon capture and storage offer routes to reduce carbon dioxide emissions. Coal reserves are significantly more abundant and much more widely and evenly dispersed than other fossil fuels.


The top five coal producing countries are: China, US, India, Australia and South Africa. All these countries use their indigenous coal as the primary fuel for electricity generation and all except India have a sizeable coal export market.


The world currently consumes over 5500 million tones of coal for use in power generation, steel production, cement manufacture, as a chemical feedstock and as a liquid fuel (IEA, 2005a).


Where there is a forecast of depletion in the supply of oil and gas in next 50 years coal may serve the purpose for next 150 years or more and by then new and renewable sources of energy will find wide market.


Coal can be converted to liquid and gaseous fuels to substitute for oil and ultimately to less depend on imported oil -- South Africa has a well-established coal-to-liquids industry, and China is currently adopting this technology.

China wants to cut down its oil import dependence by building a commercial scale direct coal liquefaction plant in Inner Mongolia, which will produce around 50,000 barrels a day of finished gasoline and diesel fuel.


Overall costs for coal-based power stations are usually lower than from other sources and utilization of coal for electricity generation should be a key choice. At present almost 40 percent of global electricity generation is based on coal (IEA, 2005b). The generation technologies are well established.


Not only the developing nations but developed nations also face power crisis and the solutions for that has been recognized as utilisation of more coal in power plants.


Renewable energy can reduce dependency on finite energy sources and remove some of the risk on oil import dependence.

Hydropower provides many countries with a substantial amount of their electricity needs; however, when weather conditions deviate from normal, severe problems such as the blackouts experienced in Brazil and New Zealand can occur.


New Zealand's crises in 1998, 2001 and 2003 occurred as a result of an over dependency on a single energy source -- hydro power. There has been now a four-fold increase in coal fired electricity generation (IEA, 2005b).


In California due to severe energy crisis in 2000-2001 a 1300-mile transmission system to generate 12000 MW of electricity -- 6000 MW from coal fired gasification (IGCC) plants and 6000 MW from wind power -- has been in plan.


In September 2003 Italy suffered a nationwide blackout, which had an impact on its total population of 57 million people. Much of Italy's electricity is imported. The bulk of Italy's own generation is from oil-fired power stations.

Due to the increasing cost of oil and a need for new and diversified power generation, many of these stations are being converted to gas or coal fired plants. Enel, Italy's largest generator, aims to double its coal fired capacity to over 10,000 MW, or 50 percent of its generating portfolio. The Italian government has also eased regulations on building new power plants and sought to encourage greater investment in the electricity sector.

In Bangladesh the only commercial energy resource that mainly supports power generation in the country at present is natural gas. About 70 percent of power generation depends on natural gas.


As per the forecast of Petrobangla, the total remaining gas reserve would meet the country's projected energy demand upto 2015. So discovery of additional gas fields or alternative sources of fuel could meet up this challenge. Coal discoveries of the north-western part of the country, with its total estimated mineable reserves of 1400 Mt (which is approximately 37 Tcf of natural gas in terms of heat value) seemed to have solved this problem.


Considering that many countries in the world have between 40 percent to 60 percent of their electricity generation using coal, Government of Bangladesh should take prompt action for a rapid increase in generation of coal fired electricity, which will ultimately have the effect of enhancing the energy security of the country.


Future power plants in the country may be set up on dual fuel system using coal and gas for the sake of better energy security. This would save and conserve Bangladesh's reserve of natural gas, and prevent the dependence on oil import for power generation.

Coal production should be at such a rate that its availability in the country for a period of at least 50 years can be confirmed.

China, manufacture small-scale power plants in the range 3 to 5 MW operating on coal, and these technologies can also be promoted in our country for electricity supply in remote and rural areas.


It is important to understand the environmental impacts of mining, processing, and utilization of coal.

The choice of mining method is largely determined by the geology of the coal deposit. Underground mining currently accounts for about 60 percent of world coal production, although surface mining is more common in several important coal producing countries like in Australia where it accounts for about 80 percent, in the US 67 percent. In India also surface mining is given importance. Surface mining or opencast mining is only economic when coal seam is near the surface.


Opencast mines damage a large land surface area, displace people from their ancestral homesteads and cause agricultural losses. But the method is cost effective, recovery is high around 90 percent, comparatively better in safety aspects and is considered to be a modern method.

Surface mining requires large areas of land to be temporarily disturbed. This raises a number of environmental challenges, including soil erosion, dust, noise and water pollution, and impacts on local biodiversity. But modern technology considerably reduces these problems. The idea is to select proper technology.


Mine subsidence can be a problem with underground coal mining, whereby the ground level lowers as a result of coal having been mined beneath. Steps are taken in modern mining operations to minimise these impacts. Good planning and environmental management minimises the impact of mining on the environment and helps to preserve biodiversity. Computer simulations can be undertaken to model impacts on the local environment. The findings are then reviewed as part of the process leading to the award of a mining permit by the relevant government authorities.


Whether coal is to be extracted by Opencast or by Underground methods of mining the selected method is to acknowledge the need to reduce environmental impact and to provide security of supply, deliver environmental and social goals and promote competitive energy markets.

Environmental issues related to coal processing include water quality issues such as acidic drainage, slurry impoundment discharges, physical disturbances, and gob fires.

The environmental impacts of coal use, mostly for electric power, include harmful emissions and solid waste disposal. Emissions of concern include sulfur and nitrogen oxides that lead to acid rain; particulate matter that causes haze; mercury and its health impacts; and carbon dioxide as greenhouse gas and its potential to change climate.

Methane (CH4) is a gas formed as part of the process of coal formation. It is released from the coal seam during mining operations. Methane is a potent greenhouse gas. Methane from coal seams can be utilised rather than released to the atmosphere.

mixed bag today ! intresting week ahead !

This is looking a tad silly, almost 10% down on just 48K shares traded. ?!?!

Better....

I did top up, no matter how hard you research the situation it remains a gamble - but the risk/reward is still worth it imo !! (at the mo)

some positive trading/buying today !!

Bangladesh welcomes large scale foreign investment



Chief Adviser Dr Fakhruddin Ahmed Monday said Bangladesh welcome large- scale foreign direct investment in infrastructure projects to accelerate socioeconomic growth in the country.

The remark came when Vinod K Mittal, managing director of UK- based Indian Mittal Group, who called on the Chief Adviser at his office, showed keen interest to invest in various sectors in Bangladesh.

Dr Fakhruddin said the liberal investment policies of Bangladesh coupled with low cost and competitive resources base made the country very attractive for FDIs in a number of sectors.

He expressed the hope that Bangladesh would be able to derive synergic benefits from the rapid economic development that has been taking place in neighbouring India and China through joint venture in the public and private sectors.

During the meeting, VK Mittal showed interest to invest in various sectors of Bangladesh including energy, power generation, coal mines development, infrastructure and hospitality industry.

He appreciated the peaceful and highly favorable investment climate now prevailing in Bangladesh and looked forward to working with the Bangladesh government in different areas.

Mittal was accompanied by Javed Pasha, director of Mittal Group and former minister of Pakistan.

Secretary of the Chief Advisers Office Kazi M Aminul Islam and executive director of Board of Investment (BoI) Nazrul Islam were also present on the occasion.

still good to see some buying, and some interesting points ............ Do NOT ignore the significance here between the Mittal family, Rab Capital Plc and GCM Plc. Mittal are the largest investors in Rab Plc and their funds and Rab Plc are the largest investors in GCM. One big happy family and circle i would expect that gives huges pursuasion to this entire project. Mittal have just announced a $2.5 billion investment in Bangladesh. Its not going to impress Mr Mittal if the government now deny the Phulbari project is it?

!!!!

some positive buying today ! the Fat Lady is about to sing I hope !!

it looks to me as if a lot more PI's starting to think that GCM is worth a Punt !!! still the risk/reward is still worth it imo ! :)

Dhaka, Sunday, July 08, 2007

GCM to invest $5 m in Chinese coal-mine project


The UK-based Global Coal Management plc (GCM), the mother company of the Asia Energy Bangladesh, has announced its plan to invest in a coal-mine project in China, reports UNB.
According to an announcement, released by the Asia Energy, which remained engaged in Phulbari Coal Project in Bangladesh, the GCM will invest US$5 million in cash for a 5 percent equity interst in the Baijing-based China Coal and Energy Corporation (CCEC). The CCEC, which is developing a number of coal projects in China, has entered into several conditional agreements with GCM regardinbg coal projects in Shanxi and Inner Mongolia.
The 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 stages but appear to be substantial coal resources which could be suited to large-scale mining.
As these projects will require significant technical assistance, GCM has agreed to provide management services to CCEC directly and will be guiding its technical management and development.

INTERVIEW - Bangladesh plans to generate 3,000 MW of power
Mon Jul 9, 2007 4:57 PM IST

By Serajul Islam Quadir

DHAKA (Reuters) - Bangladesh aims to build 1,000 megawatts of power capacity in the next 18 months for about $1 billion as the army-backed government restores democracy, easing chronic shortages that have sparked riots, an official said.

The government's energy adviser, Tapan Chowdhury, said the plan was to build another 2,000 MW on top of that after the turn of the decade, which would boost overall incremental capacity to 40 percent of the country's total installed capacity.

"We are trying to work out short, medium and long-term plans to overcome the shortfall of electricity that hampers production at fields and factories," Tapan told Reuters in a recent interview.

"By the time we leave power to an elected government, we also want to ensure the country generates at least 3,000 MW of extra power to meet the country's total requirements."

The interim government, which seized power in January and scrapped planned elections in the wake of widespread violence, has put the country under emergency rules.

It says elections will be held before end-2008 after completing electoral reforms to ensure a free and fair vote.

Tapan said his government would install small private-sector generation plants in an attempt to generate 1,000 MW of electricity as soon as possible.

Following that, it plans to build bigger plants with financial assistance from the World Bank, the Asian Development Bank (ADB) and other donor agencies to produce another 2,000 MW, he said. The investment estimated for each megawatt of generating capacity is $1 million, he added.

Tenders will be processed soon for two 450 MW power plants at Meghnaghat near Dhaka and Sirajganj in the north, Tapan said.

Another plant with 300 MW capacity at the cost of $300 million will be installed under local initiatives including government and private sector participation, he added.


COAL OPTION

Bangladesh's installed generation capacity is currently more than 5,000 MW, but actual production is just 60 percent due to ageing and poorly maintained plants, which often suffer outages, officials have said.

The country faces up to 2,000 MW of power shortfall daily, leaving much of the country in darkness and triggering protests by farmers unable to irrigate their land. Industries are forced to run fewer shifts due to power shortages.

Frequent power failures cut the country's gross domestic product by around $1.0 billion annually, the World Bank said. The World Bank had said Bangladesh would require $10 billion in investment in the next 10 years to overcome the shortages.

Despite the plan to boost generation, Tapan feared the situation would worsen after 2011, unless Bangladesh explored more gas and came up with a clear policy to exploit its huge coal reserves, especially in the country's north.

The government has set up a committee to look into the country's coal production to help resolve issues that have delayed exploration, such as whether to opt for open-pit or underground mining and make it attractive for private sector investment. It was not clear when the study would be completed.

In August last year, violent protests forced the closure of an ambitious Bangladesh coal project led by Asian Energy Plc.

The country's five coal fields have estimated reserves of 2.55 billion tonnes, out of which 1.17 billion tonnes are recoverable.

Bangladesh also has 13.54 trillion cubic feet of proven and recoverable gas, which may not last beyond 2015, officials said.

Power to Power Bangladesh
power sector
EB Report , published 10/7/2007


By- Khondkar A Saleque

Government has planned to go for massive drive for setting up several power plants by 2012 to create security of supply in the national power grid. These plants will be mostly gas fired. Some coal plants are also in view considering the commencement of coal mining activities to commence soon.

http://www.energybangla.com/article_det.asp?aId=578

Asia Energy Launches Its Bengali Website
Coal
EB Report , published 13/7/2007

Page [ 1 ]

Asia Energy Corporation (Bangladesh) Pvt. Ltd. has launched a Bengali website to make available information about its Phulbari coalmine project.



The new web address is: www.phulbaricoal.com.

Addressing a function at a city hotel on this occasion Thursday evening, Chief Executive Officer (CEO) of the Asia Energy Gary N Lye said that they are waiting for the governments approval to implement the Phulbari coalmine project.



The UK-based company conducted a feasibility study on Phulbari coalmine project and determined an approximate reserve at 572 million tons.



Finally, it submitted a US$ 2 billion-development scheme during the immediate past BNP-led alliance government in October 2005 to extract coal from the mine through an opencast mining method. But the plan is yet to be approved by the government.



Replying to a question, the Asia Energy Bangladesh chief said that the opencast mining would be the only suitable option for Phulbari coalmine project to extract highest amount of coal from the mine.



He said the company is ready to deliver a reliable supply of affordable coal for power generation and other industrial and domestic needs for next 30 years.

Thanks for the update and weblink Smiler O. Another very positive 'Ping'.

Yes darradev I think so, 7 billion dollars of estimated tax revenue in addition to more reliable future power supply is surely something the government will support One would like to think !!! Not long now I hope