Global Coal Management Plc (formerly Asia Energy PLC)



Overview

GCM Resources plc (GCM) is a London-based resource exploration and development company. Its principal asset is its undeveloped coal deposit in the Phulbari region of Bangladesh, the development of which is awaiting approval from the Government of Bangladesh. It also has investments in other companies with mining interests. The company's shares are quoted on the Alternative Investment Market (AIM). (Ticker code: GCM).

The Phulbari Coal Project is a substantial, world class coal resource that will support a long life, low cost mining operation. It is the only such deposit in Bangladesh that has been subjected to a full Feasibility Study and Environmental and Social Impact Assessment prepared to international standards. In partnership with the Bangladesh Government, civil society and the community, GCM is committed to developing the Phulbari Coal Project to the highest social and environmental standards. By doing this, GCM seeks to maximise the benefits of the Project for both the Company’s shareholders and the people of Bangladesh.

The Company (GCM) under its former name, Asia Energy PLC, was incorporated in England and Wales as a public limited company on 26 September 2003. Asia Energy PLC was admitted to the Alternative Investment Market (AIM) of the London Stock Exchange on 19 April 2004. Through seed capital raising and the subsequent placement of shares, some £14 million was raised.

In November 2005, following submission to the Government of Bangladesh of the Phulbari Coal Project's Feasibility Study and Scheme of Development, the Company placed an additional 7 million shares and raised a further £33 million.

GCM actively reviews investment opportunities in order to broaden its global investment portfolio.

Coal Project facts

■ Energy security and diversity – The Project has a unique role to play in addressing the country’s electricity shortfall as its development will provide the basis for a step change in the country’s electricity generating capacity.
■Regional development – The Project will provide 17,000 jobs (direct and indirect). In addition the development of new industries using the industrial mineral co-products from the mine will create thousands of more jobs. The living conditions of all affected people will be improved and their livelihoods will be restored and in many cases improved. As a result of year round irrigation, improved water quality, improved inputs and improved farming practices it will be possible to produce three crops per year with higher yields than at present.
■Huge economic impact – Phulbari will contribute 1% to Bangladesh’s GDP each year and pay US$7.0 billion in taxes, royalties and service charges to the Government over the life of the Project. The replacement of high sulphur imported coals and other hydrocarbons will have a positive effect on balance of payments and air quality.

In partnership with the Bangladesh Government, civil society and the community, GCM is committed to developing the Phulbari Coal Project to the highest national and international social and environmental standards. By doing this, GCM seeks to maximise the benefits of the Project for both the company’s shareholders and the people of Bangladesh.

Background

Bangladesh is one of the most densely populated countries in the world with some 162 million people living in an area two thirds the size of the United Kingdom or about the size of New York State. Less than one third of its population live in cities while the majority live in rural areas relying on a predominantly subsistence lifestyle. GDP per capita is around US$1,700 (ppp) per annum compared with a world average of US$10,500. Less than half the population have access to electricity. Bangladesh is a country of enormous potential. It has the eighth largest work force in the world and is included in the “Next Eleven” countries that, after the BRICs (Brazil, Russia, India, and China), were identified by Goldman Sachs as having the potential to become the world’s largest economies in the 21st century. It has enjoyed more than 6% economic growth in real terms over the last five years as well as substantial improvements in measures of human development. For example, between 1980 and 2006 life expectancy has improved from 48 years to 63 years and literacy rates have improved from 29% to 53%.

Bangladesh is one of the most climate vulnerable countries in the world with a significant proportion of the population living in remote or ecologically fragile areas such as river islands or cyclone prone coastal areas. Two thirds of the country is less than five metres above sea level making it vulnerable to the predicted effects of climate change.

Although Bangladesh is vulnerable to the effects of climate change, it is not itself a significant emitter of carbon dioxide. Per capita carbon dioxide emissions (0.3t/capita) are substantially below other countries in the region (Pakistan 0.9t/capita, India 1.4t/capita, China 4.9t/capita) which themselves are substantially less than emissions from developed countries (UK 8.9t/capita, USA 18.9t/capita). Even with the addition of the 4,000MW of electricity capacity which Phulbari coal could support, Bangladesh would still be one of the lowest emitters of carbon dioxide in the world, substantially less per capita than its neighbouring countries.


http://www.gcmplc.com/

"

RNS Number:2075D
Global Coal Management PLC
03 September 2007

Global Coal Management plc
("the Company")

Notification of significant holding

Under the FSA Disclosure and Transparency rules DTR 5, the following information
falls to be disclosed:

The Company was notified on 31 August 2007 that Argos Greater Europe Fund has an
interest in the shares of the Company resulting in a total holding of 1,490,000
Ordinary Shares in the Company. This represents 3.05% of the issued share
capital of the Company.

Lets hope they get the go-ahead soon !! then sit back and watch this share go !!!

looks to be going already!

hello cynic...... this has been a political nightmare... still IF this get's the go-ahead could see a good return Just like oxs !!!

Coal policy not to ban any mining
method to keep options open
Staff Correspondent

The advisory committee, formed to finalise the draft coal policy, has decided in principle that the policy would not recommend or ban any particular mining method to keep options open for both open-pit and underground mining in the country.
The committee, headed by former BUET vice-chancellor Abdul Matin Patwari, at a meeting on Monday evening reviewed recommendations of different rights group and professionals including the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port and the Citizens Commission of the Bangladesh Economic Association.
The committee, however, did not agree in principle with the recommendations of the oil and gas committee and economic association, which were submitted recently, to drop the open-pit mining method from the coal policy.
The groups demanded that the open-pit mining method should be dropped from the policy as it would pollute the environment, oust thousands of people from their homesteads and destroy fertile farmland that produces three rice crops in a year.
The advisory committee also shared the view of the two groups that no coal export should be allowed from the country to ensure the energy security of the coming generations.
We should not recommend or ban any mining method in the policy as the method should be fixed on the basis technical, social, environmental and economic aspects. If it is found that open-pit mining is not viable after analysing the costs and benefits, it is natural that no one will want to engage in open-pit mining, Patwari told the meeting.
Other members present at the meeting included University Grants Commission chairman and environmentalist Nazrul Islam, Dhaka University terachers Badrul Imam and Mustafizur Rahman and Petrobangla director Maqbul-E-Elahi, all of whom echoed Patwaris view.
Five other committee members were not present at the meeting. Patwari, based on the estimate of the requirement for coal in the country for power generation, observed that if the country adopts only underground mining system, the extracted coal would be fully consumed even before 2025 although the government wanted to ensure energy security for 50 years.
He told the meeting that the oil and gas committees convener, Sheikh Shahidullah, recommended that the country should immediately go for underground mining in all coal-fields and after 20 years, if it is found viable, the country could go for open-pit mining after developing its own technical manpower.
So, Mr Shahidullah has not ruled out open-pit mining forever, he said.
As per the estimate of the framers of the draft coal policy, around 235 million tonnes of coal can be extracted by underground mining from four coal-fields that have a combined reserve of around 1,168 million tonnes.
On the other hand, around 1,050 tonnes of coal could be extracted by open-pit mining.
As per the power sector master plan, the country will need 41,890 megawatts of electricity by 2025 if the growth rate is considered to be 8 per cent. The draft coal policy estimated that country would need around 450 million tonnes of coal by 2025 to generate around 32,837 megawatts of electricity and rest of the electricity would be generated by gas. By 2035, a total of 1,200 million tonnes of coal will be needed if no new power plants are set up after 2025.
Professor Badrul Imam, however, told the meeting that even if the open-pit mining method is allowed in the country, it would be impossible to operate more than one open-pit mine as countrys coal reserve is situated in only two districts.
The committee members will visit Barapukuria, Phulbari and Dighipara coal-fields on September 11-12 before starting to review thoroughly the draft of the coal policy submitted by the energy division.

Positive contributions to the Funds performance during July were few and far between. Pleasingly, however, most of these were to
be found amongst our holdings in smaller commodity-focused companies, which had performed poorly during recent months. Of the
Funds larger holdings in this space, Mercator Gold, Global Coal Management and Norseman Gold all rose slightly during the
month, and all three continue to offer exceptional value in our view.



http://www.argos-funds.com/assets/af/001/downloads/argos_monthlyReview-AGEF.pdf

Published On: 2007-09-05
Point Counterpoint
Dealing with existing coal projects
Forrest Cookson

At present, Bangladesh has a law that governs the exploration and development of minerals. This law sets out the procedures to be followed and the taxes that are to be paid. Any company wishing to develop mineral resources in Bangladesh must work within this law.

The two major private sector companies involved in coal -- the Tata with a number of proposals and Asia Energy's Phulbari project both conceived and investigated their ideas within the framework of this mineral law. Tata has made definite proposals to the Government reflecting work done on the feasibility of the coal mining and use of the coal in steel production and power generation; these projects are effectively proposals by Tata drawn up and prepared with the full support of the Government.

Tata was encouraged by the Government and their analysis must follow the law of Bangladesh. Asia Energy has carried out exhaustive exploration, environmental and resettlement studies in conjunction with the preparation of a mine development plan, all as required by the Government according to the law.

The implication of the preparation of a new coal policy is that Government intends to modify existing law. Bangladesh has a clear sovereign right to carry out whatever changes it wants to make to existing law.

However, in doing so it must take account of the current law and agreements made or implied under that law. Under the Foreign Investment Protection Act the Government has legislated that it will not destroy a foreign investor's project by major changes in the conditions under which the company operates.

It would be against Bangladesh law for example to raise the taxes imposed on a particular company to such a level as to effectively expropriate it. New legislation derived from the coal policy should explain clearly the position of companies working under the existing legislation. The proposed 20% royalty rate has precisely that effect.

While any country has the sovereign right to do what it wants; one has to live in an international community where actions may have consequences. One approach used to handle companies that are investing under a law or regulatory regime that is changed is to "grandfather" the existing companies into the new law; having the old laws apply to these grandfathers. New participants would fall under the new law as such groups would know the rules but Tata and Asia Energy would continue to operate under the old laws.

Persons outside Government have demanded the cancellation of the Asia Energy contracts and agreements. Under the previous regime the Ministry of Law, Justice and Parliamentary Affairs was requested by the Ministry of Energy to give an opinion on whether the contract could be cancelled without serious penalty.

The response of the Ministry is unknown. I have asked several eminent lawyers what they thought. All replied that there is no basis for cancellation of the contract that does not expose the Government to possibility of a significant arbitration award.

The negative factors that may flow from cancellation of the contract or major changes in the rules are:

* Foreign investors would be much more hesitant in investing in Bangladesh for fear that the Government would turn on them canceling contracts without justification, etc. I will be answered with the claim that there will be many investors ready to come forward -- that is correct, but they will demand much better terms. The risk of investing in Bangladesh already perceived as high would be higher still and consequently higher returns would be demanded.
* The coal reserves at Phulbari would be tied up in litigation making it impossible to exploit these resources until the legal issues are settled. Asia Energy's lawyers could attempt to block any exploitation involving a foreign company. There will be endless litigation, prospect of which will discourage foreign companies from working on this asset.



Similarly the World Bank, IDB or ADB would not touch a project at Phulbari with a background of contract cancellation. Even domestic financed exploitation may run into claims by Asia Energy that their rights have been violated and they will attempt to seize Bangladesh Government property overseas.

* The dispute involves investors in the UK. In my view the British Government would face difficulty continuing its program here if such an expropriation of Asia Energy took place; indeed Asia Energy's lawyers may go to court to prevent foreign assistance until their claims are settled.
* The dispute would go to arbitration. Asia Energy would argue for recovery of their costs -- perhaps $40-60 million and recovery of what the existing investors stand to earn. I estimate this at $1-2 per ton of coal.



That is $500-1,000 million over a thirty-year period. In addition there would be court costs and interest costs as it could take years to settle. If Bangladesh refused to pay then the consequences would be very severe in terms of access to the international capital markets as well as the IMF, ADB, World Bank etc. Of course Bangladesh may win its case in arbitration but the risks should be understood.

Cancellation of these projects or changing conditions effectively expropriates and starts down a dangerous path with the outcome uncertain and potentially expensive. Grandfathering under existing law is the better way to go forward here.

RAB Special Sits continuing to add:


Global Coal Management PLC
11 September 2007


TR-1(i): Notification of major interests in shares

1. Identity of the issuer or the underlying issuer of existing Global Coal Management
shares to which voting rights are attached(ii):
2. Reason for the notification (please tick the appropriate box or boxes)
An acquisition or disposal of voting rights X
An acquisition or disposal of financial instruments which may result in the acquisition of
shares already issued to which voting rights are attached
An event changing the breakdown of voting rights
Other (please specify):
3. Full name of person(s) subject to the notification obligation RAB SPECIAL SITUATIONS (MASTER) FUND
(iii): LTD
4. Full name of shareholder(s) (if different from 3.)(iv): MERGEFIELD 'Shareholder' CREDIT SUISSE
CLIENT NOMINEES (UK) LIMITED
5. Date of the transaction (and date on which the threshold is 07/09/2007
crossed or reached if different)(v):
6. Date on which issuer notified: 11/09/2007
7. Threshold(s) that is/are crossed or reached: 23%
8. Notified details: n/a




A: Voting rights attached to shares
Class/type of Situation previous to Resulting situation after the triggering transaction(vii)
shares the Triggering
transaction (vi)
if possible Number of Number of Number of Number of voting rights % of voting rights
using the ISIN Shares Voting shares ix
CODE Rights Direct Direct x Indirect Direct Indirect
viii xi


ORDINARY 10,643,126 21.81% 11,629,511 11,629,511 n/a 23.83% n/a
SHARES
B: Financial Instruments
Resulting situation after the triggering transaction xii
Type of financial Expiration Exercise/ Conversion Number of voting rights % of voting
instrument date xiii Period/ Date xiv that may be acquired if rights
the instrument is
exercised/ converted.
n/a n/a n/a n/a n/a
Total (A+B)
Number of voting rights % of voting rights


A ONLY 23.83%





9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are
effectively held, if applicable xv:
RAB Capital plc acts as investment manager for RAB SPECIAL SITUATIONS (MASTER) FUND LTD. RAB Capital plc
does not act as custodian for its clients and therefore the shares are held in the nominee name of the
custodian of its clients, which is CREDIT SUISSE CLIENT NOMINEES (UK) LIMITED.



MERGEFIELD 'Note'
Proxy Voting:
10. Name of the proxy holder: n/a
11. Number of voting rights proxy holder will cease to hold: n/a
12. Date on which proxy holder will cease to hold voting rights: n/a
13. Additional information: n/a
14. Contact name: LEGAL TEAM
15. Contact telephone number: 020 7389 7000




Annex Notification Of Major Interests In Shares xvi
A: Identity of the person or legal entity subject to the notification obligation
Full name (including legal form for legal entities) RAB CAPITAL PLC FOR AND ON BEHALF OF MERGEFIELD
'Fund' RAB SPECIAL SITUATIONS (MASTER) FUND LTD
Contact address (registered office for legal entities)

C/O RAB CAPITAL PLC,

1 ADAM STREET,

LONDON WC2N 6LE


Phone number 020 7389 7000
Other useful information (at least legal representative
for legal persons)

B: Identity of the notifier, if applicable xvii
Full name ALL AS ABOVE
Contact address
Phone number
Other useful information (e.g. functional relationship
with the person or legal entity subject to the
notification obligation)

C: Additional information
n/a

Hello Smiler - (from S. Africa) good to see RSS adding.... a man of conviction obviously. As he says, he'll either be right or he'll be wrong!

Hope you & AM are having a good time !! At 90p IMHO worth the risk !! :)

yes i think so Smiler - even cheaper today.... how low can it go!!!!

Fogl going well :)

Petrobangla, BCMCL, CMC Sign Side Letter Deal on Barapukuria Mine
[ Print ]


Coal

EB Report , published 14/9/2007

Page [ 1 ]



Petrobangla, Barapukuria Coal Mining Company Limited and a Chinese Consortium led by CMC have signed a side letter agreement on completion of development work of Barapukuria coal mine.



The side letter agreement was signed on Wednesday so that the consortium finishes incomplete development work of the mine as per the original development agreement signed in 1994, Petrobangla officials said.



When the consortium will finish the development work, BCMCL, a subsidiary of Petrobangla, will issue takeover certificate to the consortium.



The consortium was also given a six-year service contract for producing coal from the field in 2005. But it failed to produce coal as per the contract.



A Petrobangla release said the visiting president of CMC, Tang, assured the government that the consortium would take all out efforts to recover the closed section (1100) of the coal mine which was shut for the second time because of emission of carbon monoxide.



The CMC will purchase a new set of equipment to produce coal as equipment worth millions has remained abandoned at the closed compartment. Petrobangla requested CMC not to charge BCMCL for the equipment.

Bangladesh: Set up Coal-Based Power Plants in Northern Districts

power sector

EB Report , published 15/9/2007

Page [ 1 ]



Speakers in a seminar in Rangpur recently extraction of coal from northern region mines and setting up coal-based power plants to meet the need.



The seminar was organized jointly by Rangpur Chamber of Commerce and Industry (RCCI) and Greater Rangpur Welfare Somiti, Dhaka (Bangladesh) at RCCI conference room.



They urged the government not to pay heed to those who are obstructing extraction of coal from the region.

RCCI president Mostafa Azad Choudhury presided over the seminar while president of Greater Rangpur Welfare Somiti and also former National Board of Revenue (NBR) executive chairman Nazrul Islam moderated it.



Four keynote papers on 'Development of Greater Rangpur and Northern Region: Problems and Potentiality' were presented at the seminar.



Former chairman of Bangladesh Chemical Industries Corporation (BCIC) and former chief engineer of Local Government Engineering Department (LGED) Monwar Hosen suggested in the seminar that the government should set up two urea fertiliser plants in Rangpur or any other places in northern region.



Former chairman of Bangladesh Power Development Board Brig Gen (Rtd) MA Malek and vice-president of Greater Rangpur Welfare Somiti M A Mojid addressed among others in the seminar.

Sunday, September 16, 2007 03:26 PM GMT+06:00

Published On: 2007-09-14

Efficient use can save 800MW electricity: Energy experts
Staff Correspondent

Energy experts at a roundtable yesterday gave energy saving through its efficient use a top priority followed by setting up coal-based power stations in the northern part of the country to meet the increased power demand and ensure energy security.

Terming corruption and mismanagement as the major obstacle for setting up new power plants in public sector, they said the government should provide private sector with finance and other facilities to set up power plants to add more power to national grid.

The roundtable styled 'Energy efficiency: Third fuel for Bangladesh' was organised jointly by Energy and Power, a fortnightly magazine, in association with German Technical Cooperation (GTZ) at the Cirdap auditorium in the city.

"No load shedding would be there if we could save 700MW to 800MW of electricity. Both the engineers and common people should think of how we can save more energy," said Energy Adviser Tapan Chowdhury while speaking as chief guest at the roundtable.

He said a lot of gas is being misused in some industries while there is only 13.5 tcf (trillion cubic feet) of reserve that will hardly continue up to 2012 to 2015.

"The other source of energy is coal, but it is very unfortunate that we could not take any decision on coal yet. If we cannot take a decision, we are going to face serious consequences in future," Tapan added.

Experts will have to make strong recommendations on coal, he said as journalists asked why the government is not taking any decision on it.

Urging all to use energy-efficient bulbs, he said a proposal has been sent to the finance ministry to import energy-saving bulbs.

In the keynote presentation, German Development Cooperation Senior Adviser Dr Khursheed-Ul-Islam said efficient use of power in thermal, electrical and even combined heat and power systems could save around 800MW of electricity.

"This is equivalent to two-power-plant capacities or deferring electric power demand growth for two years," he said, adding that application areas for efficient energy use are domestic, commercial and industrial lighting, industrial motors and power factor improvement.

The other options for future energy security are solar, bio-mass, bio-gas, wind and hydro power, but the penetration of these renewable sources is low with the major barriers being financial, technical and social, said Khursheed, also former consultant of World Bank's First Energy Audit Project.

Prof Nurul Islam of Bangladesh University of Engineering and Technology (Buet) suggested introduction of a course for electrical engineering students on efficient use of energy.

Stressing the need for strengthening the government's regulatory activities to monitor such energy saving issues, he said the NGOs, working on renewable energy projects, often end up their projects due to discontinuation of funding, which ultimately brings no result.

BD Rahmatullah of Rural Electrification Board said Bangladesh is the only country where energy efficiency and conservation are not stressed.

There is 21 percent system loss in the electricity, while a lot of indiscipline is existing in the metering system, he added.

At least 2000MW electricity could be added through efficient use of energy and captive power plants, Rahmatullah said, adding, "We have the crisis in management and thinking."

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Nasir Hossain said the government should have a policy for efficient use of energy as well as encourage the local industries to set up power plants and add to the national grid, making the grid an 'energy super highway'.

Stressing on privatisation in energy sector, he said the worst victims of power crisis are the small and medium enterprises.

Prof Shahnawaz Ahmed and Dr Ijaz Hossain of Buet, Dipal Barua of Grameen Shakti, Mostafizur Rahman of Energy Audit Cell, and Brig Gen Nazrul Hasan of Desa also spoke at the roundtable moderated by Energy and Power Editor Mollah Amjad Hossain and Journalist Farid Hossain of AP.

http://www.thedailystar.net/story.php?nid=3959

Global Coal Mgmnt Holding(s) in Company

RNS Number:9873D
Global Coal Management PLC
17 September 2007


TR-1(i): NOTIFICATION OF MAJOR INTERESTS IN SHARES

1. Identity of the issuer or the underlying issuer of existing Global Coal Management
shares to which voting rights are attached(ii):

2. Reason for the notification (please tick the appropriate box or boxes)

An acquisition or disposal of voting rights X

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

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the notification obligation RAB SPECIAL SITUATIONS (MASTER) FUND
(iii): LTD

4. Full name of shareholder(s) (if different from 3.)(iv): MERGEFIELD "Shareholder" CREDIT SUISSE
CLIENT NOMINEES (UK) LIMITED

5. Date of the transaction (and date on which the threshold is 14/09/2007
crossed or reached if different)(v):

6. Date on which issuer notified: 17/09/2007

7. Threshold(s) that is/are crossed or reached: ABOVE 24%

8. Notified details: n/a




A: Voting rights attached to shares
Class/type of Situation previous to Resulting situation after the triggering transaction(vii)
shares the Triggering
transaction (vi)
if possible Number of Number of Number of Number of voting rights % of voting rights
using the ISIN Shares Voting shares ix
CODE Rights Direct Direct x Indirect Direct Indirect
viii xi


ORDINARY 11,629,511 23.83% 11,754,511 11,754,511 n/a 24.08% n/a
SHARES
B: Financial Instruments
Resulting situation after the triggering transaction xii
Type of financial Expiration Exercise/ Conversion Number of voting rights % of voting
instrument date xiii Period/ Date xiv that may be acquired if rights
the instrument is
exercised/ converted.
n/a n/a n/a n/a n/a


Total (A+B)
Number of voting rights % of voting rights


A ONLY 24.08%





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

RAB Capital plc acts as investment manager for RAB SPECIAL SITUATIONS (MASTER)
FUND LTD. RAB Capital plc does not act as custodian for its clients and
therefore the shares are held in the nominee name of the custodian of its
clients, which is CREDIT SUISSE CLIENT NOMINEES (UK) LIMITED.



MERGEFIELD "Note"

Proxy Voting:

10. Name of the proxy holder: n/a

11. Number of voting rights proxy holder will cease to hold: n/a

12. Date on which proxy holder will cease to hold voting rights: n/a

13. Additional information: n/a

14. Contact name: LEGAL TEAM

15. Contact telephone number: 020 7389 7000

Friday, September 21, 2007 02:29 PM GMT+06:00


Metropolitan
Coal Policy
Govt body to visit mine, coal rich areas today
Staff Correspondent


The committee tasked with finalising a coal policy for the country will be visiting today Barapukuria coal mine, Phulbari, Khalashpir, Dighipara and a few other areas that are rich with coal deposits.

The members of the committee, accompanied by the energy secretary, will talk with the officials of Barapukuria Coal Mining Company as well as with the locals of Phulbari, including the ones who have been opposing the coal-mining proposal of Asia Energy, said sources.

On the way, the committee will visit the Dighipara and Khalashpir coal zones, the sources added.

The committee also intends to visit and survey the area of Jamalganj -- the country's biggest coal deposit -- where no visible surface marking is available.

Furthermore, the committee that was formed in June has decided to send two of its members -- Prof Nurul Islam from Bangladesh University of Engineering and Technology (Buet) and Prof Badrul Imam from Geology Department of Dhaka University -- to the upcoming Saarc coal conference to be held in Kolkata in mid-October.

The committee recently resolved a vital debate on the mining method in the draft of national coal policy. While one group of people had been putting pressure on banning the open-pit method of mining in Bangladesh, the other group wanted all mining option to be open for particular mining proposals.

The committee decided that the policy would not restrict any mining method since it depends on technical issues such as geology or hydrology etc. and the government should have the discretionary authority to approve a mining method against each mining proposal.

The committee headed by Prof Abdul Matin Patwari, former vice chancellor of Buet, was formed as the sixth draft version of the national coal policy drew a lot of criticism for being anti-investment and self-contradictory.

The finalisation of the national coal policy is seen as a crucial document for the future of the existing deals with Asia Energy or Hosaf as well as for other offers that are pending government approval.

Coal Policy of Bangladesh Thoughts of the Advisory Committee
Something to say
EB Report , published 23/9/2007

By- Khondkar Abdus Saleque

A section of Bangladesh press has come up with reports that the committee formed by the Care Taker Government has almost finalized their recommendations. They may not recommend for export of steam coal and may not recommend for or against any mining method. However provision may be there to export cooking coal and other by products expected to be mined with coal. In the present situation this possibly is the best that the committee can recommend. There has been no reference however about the limit of Royalty and fiscal incentives those will be offered to the mine developers.

The estimated reserve of coal in our 5 discovered mines that has been printed in the media report is 1168 Million Metric Tons. If all these are to be mined in underground mining method the maximum recovery will be 240 Million Tons while if all could be mined by surface mining it could be 1100 Million tons. Our Patriotic Oil, Gas, Port and Power protection committee wants to ban surface mining. Do they want to let most of the coal buried underground for ever? It is very unfortunate if that is their way of protecting the countries resource. They should rather demand how we can recover the maximum amount of Coal without causing major damage to environment and making appropriate arrangement for rehabilitation of affected people. In a resource constraint country it is a luxury to ban the most economic way of mining. A modern mining method caters from managing all risks and apprehensions those are being propagated. The committee probably is not misguided by their illogical demand.

The geology, the economics, the depth of coal seam will dictate the mining method. No coal policy in any country restricts or specifies any mining methods. If the developer can prove a safe and environmentally friendly mining method after extensive study and evidencing reasons to support their method then there is no reason why it should not be approved. The national interest is supreme. When the nation is desperately starving for energy, when gas supply is getting increasingly uncertain we must not leave behind most of our coal underground. The mine developer must rehabilitate the affected land owners in the best possible way; do everything possible to regenerate their earnings, employ most of them during mine development. The developer must also prove that the mining will not cause any pollution of surface and subsurface mining. The water management must be state of the art technology. Surface mining can not be done in case of deep coal seam. It has also been proved in case of Barapukuria that underground mining in our case is also very risky. We should try to conduct detail feasibility study by internationally accredited consultants before leasing the fields coal at greater depths for mining. Extensive study for Coal Bed Methane may also be carried out.

Now let us discuss the matter of making available coal for power generation. Our present power generation capacity is about 4000 MW and demand is about 5000MW. The Power sector master plan projects a generation requirement of 42000 MW by 2025.Will anyone believe Bangladesh will achieve this ever given our resource constraint. It is highly unlikely this target will be achieved or required .Bangladesh can not sustain a growth rate of 8% for several years. The power demand will peak off at about 30000 MW sometime after 2020.We can not have too many coal plants for its environment unfriendly nature and less efficiency. We should have about 3000 MW generation from Coal. Clean coal technology is still a far cry .If we have too many coal plants the Greenhouse gas emission will create drastic change of our climate. Draughts, Cyclones. Flooding will become regular affair. These with We may still rely on Gas either our own or imported for about 60 % power. Nuclear, Hydro, Solar, Wind, Municipal Wastes should be other options.

Well we have not yet started the mining. We are not yet sure how much coal will be safely recovered. We now desperately need the coal for power generation and in other areas of domestic demand. So no one can think about export. But we will also need lot of money to pay the the IOCs for additional gas if there is any discovery in the offshore, we will need money to purchase enriched uranium, we will need money to pay for any gas import. Once the mining starts we may discover more coal reserve. Coal price is shooting up. If clean coal techniques turn into proven technology the price will shoot up in the world market so in that situation sometime down the line after meeting our requirement and keeping coal reserved for the economic life of coal based power plants if we have surplus there is no harm in exporting if we get good price.

We hope that the coal policy will have sufficient incentives for major and genuine mining companies to explore in Bangladesh. Our own public sector currently does not have any capacity and will take years to grow. Do not misunderstand us. We are no lesser patriots. But we are not blind. Pertobangla in several years could not set up any mining management unit. Most of our mining engineers worked in the gas sector for lack of opportunity in the mining. Those who worked in the mining industry have retired. There is no scope to learn mining in the country. Petrobangla did not take any initiative to create mining professionals In this scenario how do we dream, Coalbangla will be vini, vici, vidi.

The royalty issue is very sensitive. We hope that unreasonable limit will not be there in the policy to discourage the major mining companies. Mining is Bangladesh is not the same in other countries. The mining company will not get any equipment here. All equipments with spares will require to be imported. Specialist technicians are not available, Port facilities, customs are yet to demonstrate integrity and investment friendly attitude. The country risk and political risks are also to be taken into account. Natural calamities are also more frequent. All these make investment in Bangladesh very challenging. So we must not compare ourselves with Indonesia, Malaysia or any other regional countries.

We desperately need coal soon to relieve natural gas from exclusive dependence for power generation. Simultaneous to providing green signal to coal mining initiatives may be taken to set up coal based power plants and other coal based industries in the western region so that when the mines go into commercial production there is already a ready market to consume the coal. This Care taker government has to take all these initiative. Political government for many reasons will hesitate to do that. In Barapukuria mining we must have learned bitter lessons. We do not want any repeat of that.

We look forward for a practical coal policy and like to see mining started soon.

http://www.energybangla.com/article_det.asp?aId=724

Bangladesh: Declare Northern Region as National Coal Zone [ Print ]
Coal
EB Report , published 25/9/2007

Page [ 1 ]

Speakers at a seminar entitled "Development of greater Rangpur and northern Bangladesh: Problems and Prospects", held at Rangpur chamber auditorium on Wednesday the 12th September, demanded declaration of northern region as "National Coal Zone" and formulation and implementation of coal and natural resources based development of the north and western Bangladesh, says a press release

The seminar was jointly organized by Rangpur Chamber of Commerce and Industry and Greater Rangpur Welfare Association, Dhaka. RCCI president Mostafa Azad Chowdhury presided over the seminar while Deputy Commissioner, Rangpur Khondokar Atiar Rahman inaugurated the seminar as chief guest. Greater Rangpur Welfare Association president Md. Nazrul Islam, ndc moderated the seminar. The seminar was attended by business leaders, educationists, bankers, civil society members, NGO and human rights groups.

RCCI Vice president Mostafa Ahmed, former BCIC chairman and former chief engineer, LGED Md. Monowar Hossain Chowdhury, BUET Assistant Professor Mohammed Sohrab Hossain, former chief engineer, Facilities Department engineer Abdul Kader, presented keynote papers on development of the north-expectations and achievements, development of the north and energy perspective, the main energy source gas and the north and role of electricity in the development of greater Rangpur, Dinajpur and the north, and problems and prospects thereof, respectively. Former chairman Bangladesh Power Development Board and REB Brig Gen (Rtd.) MA Malek addressed the seminar as resource person while a good number of distinguished participants took part in the discussion.

The seminar revealed that a reserve of more than two billion tons of quality coal has been discovered in five locations in northern districts. Speakers opined that the traditional development strategy failed to deliver well-proportioned development of the country creating regional disparity. Development of business and industrialization has been greatly impeded due to lack of communication and utility infrastructure in the region.

In a situation of dependence on primitive agriculture and absence of economic activities, people of north, particularly of Greater Rangpur and Dinajpur, have been routinely subjected to so called 'Monga', the seasonal unemployment. Quite reasonably, the people of the north expected quicker extraction of mineral resources and implementation of mineral resource-based development of the undeveloped north. Much expected natural gas pipeline did not extend beyond Bogra, the speakers pointed out.

They said that some vested interested groups are involved in foul plays to create constraint to extraction of coal and natural resources. These groups are identified as brokers of carbon-traders engaged in so called 'carbon emission suppression' (delaying extraction of coal). They strongly criticized the activities of Paribesh Andolon, Oil-Gas-Port Committee, Nagorik Commission and other groups active in frustrating foreign investments in the coal sector

Speakers stressed on immediate extraction of coal and other minerals from the five coal mines. Since the government has identified private investment as vehicle for industrialization and economic development, local and foreign private investment must be encouraged to invest in coal mining that would ensure deployment of resource and technology and would contribute to create backward linkage industries, power generation and distribution, communication network, expansion of trade, generation of employment opportunities in the north-western Bangladesh.

The seminar adopted 16-point recommendations including immediate extraction of coal, leaving technical aspects to experts, stopping campaign against coal, extension of gas pipe line up to Dinajpur via Rangpur and Uttara EPZ, establishment of two fertilizer factories in northern region, development of rail and road communication, formation of Rangpur division consisting of 8 northern districts, establishment of education board at Rangpur, establishment of technical and general universities in Rangpur, arranging special industrial package loan with reduced interest for the north and appropriate river management in the downstream of Teesta barrage to protect all five districts of greater Rangpur from devastation.

http://www.energybangla.com/article_det.asp?aId=725

ADB keen to finance Phulbari coal mine project

High-profile team due next tomorrow

Monday October 01 2007 00:39:10 AM BDT

After a year of stalemate the Phulbari Coal Mine is likely to get momentum as the Asian Development Bank (ADB) has showed keen interest in financing the project, reports UNB.

According official sources, a high profile ADB delegation is arriving in Dhaka on October 2 on a three-day visit to discuss its possible support to the development of the countrys coal sector, particularly the Phulbari Coal Mine project.

ADBs Director General of South Asia Department Kunio Senga will lead the delegation, which is scheduled to call on Chief Advisor Dr. Fakhruddin Ahmed and also hold meeting with the Energy Advisor, Finance Advisor and the government policymakers.

The Phulbari Coal Mine project got stalemate since August last year following agitation by the local people. Developer of the project UK-based Asia Energy submitted US$ 3 billion open-pit development scheme to the government, but no decision has yet made.

ADB source said they were interested in extending support to Bangladeshs energy sector, particularly for development of power, oil, gas and coal.

The team will explore the ways and strategies as to how it could encourage foreign investors to invest in power, gas and coal sector.

The ADB is now providing US$ 109.86 million to build a 240MW plant at Shiddhirganj to ease the electricity demand during the peak hours.

Official sources in Energy Ministry said the ADB support will supplement the government effort to develop the coal sector and set up coal-based power plants considering the countrys future gas and power shortage.

The government has already decided that all the power plants to be set up after 2011 will have to coal-based because inadequate gas reserve. The proven gas reserve is going to be depleted after 2015.

Considering importance of coal, the government is now preparing a coal policy to stimulate investment in this sector.

In a recent interview with UNB, ADB Country Director Hua Du had said they were interested in developing the coal that would ensure future energy security.

She said that Bangladesh urgently need to develop coal sector to provide fuel and the quickest way to do this is to implement some projects like Phulbari.

According to ADB Country Director, Bangladesh need larger independent power producers (IPPs) to supply electricity to the national grid immediately.

At present, about 2,000MW is required to meet the existing demand-supply gap.

Hua Du said the country should plan for 5,000MW to meet the growing demand in 5 years.

She said that coal-based power plants should be explored immediately to reduce pressure on gas reserve while supply of gas has to be ensured through timely exploration of gas.

Mentioning Phulbari Coal Project as the quickest and most effective way to kick start the coal sector, she said it can deliver and affordable energy supply for Bangladesh.

Hua Du observed that the benefit of using the coal for power generation is enormous for the Bangladesh economy.

About the recent debate on open-pit and underground coal mining methods, the ADB Bangladesh chief said, For Phulbari, open pit mining seems to be the best way to maximize coal extraction and deliver abundant coal at affordable prices.

She said in the open-pit mining project there must be comprehensive plans and strategies covering the rehabilitation of the project-affected people.

She said this should include well developed resettlement plan, indigenous peoples development plan, livelihood restoration strategy and public consultation and disclosure plan, and most importantly, their sound implementation with full public disclosure and scrutiny.