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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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

Almost all buys today ! not long now 50p or 15 ??

Smiler not so sure about GCM but I do like the look of Rab one of the major share holders seem to be well run and go from strength to strength may be worth a or two

Yes agree Flash , I also like GPN & FOGL (rab), however GCM could be a 10 bagger, risk / reward ratio is about 25/30% downside and +1000% upside. +

with barclays they will let you buy electronically :

5000 @ 138.5
15000 @ 140.00 Max

Orders bigger than 15000 have to be placed to the market, max available 100k at 141.00 , but up and down at the Mo !!

Asia Energy launches Bangla website, awaits govt nod on Phulbari project


Asia Energy Corporation (Bangladesh) Pvt. Ltd. has launched a Bangla website to make available information about its Phulbari coalmine project, reports UNB.
The new website address is: www.phulbaricoal.com.
Speaking at a function on this occasion at a city hotel Thursday evening, Asia Energy Chief Executive Officer (CEO) Gary N Lye said they are waiting for the government's approval to implement the Phulbari coalmine project. The UK-based company conducted a feasibility study on Phulbari coalmine project and determined an approximate reserve of 572 million tonnes.
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 open-cast 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 open-cast mining would be the only suitable option for Phulbari coalmine project to extract the 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.

Looking positive, some good buying today ?

Morning Smiler, small volumes but positive yes. I am looking at the volume traded as a measure for this one. Still no major players dealing ..., yet.

Am holding patiently. Half of me says this is a 'no brainer', the country needs the energy source, whilst the other half says 'politics', always gets in the way of sensible decision making. Hope the government can make up their minds sensibly.

are you watching, ajcc ! INTRESTING to see where this ends up today ?