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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OF INTEREST:

http://online.wsj.com/article/SB119938889424265505.html?mod=googlenews_wsj


Asia Looks to Coal As Oil Price Surges
By David Winning
Word Count: 586 | Companies Featured in This Article: Sasol
BEIJING -- Vast coal reserves in Asia are gaining attention as major energy consumers such as China and India grapple with the reality of oil prices around $100 a barrel and the risks they pose to their economies.

Multibillion-dollar facilities that convert coal to oil are being studied across Asia, while utilities are shelving plans to build power plants that use natural gas or fuel oil because prices of those fuels track the cost of crude.

Crude-oil futures on the New York Mercantile Exchange are more than 50% higher than they were a year ago and are within sight of ...

DHAKA (Reuters) - Asia Energy Corp (Bangladesh), sister firm of UK-based GCM Resources PLC, has proposed to build a 1,000 megawatts (MW) power plant using coal from Bangladesh's northwest field, a senior energy official said on Saturday.

The firm submitted a plan to the Bangladesh government to develop a coal mine at the field at Phulbari, 350 km (220 miles) northwest of the capital Dhaka, using open pit mining technology.

"We have received the proposal (for the power plant) through the board of investment, but before giving them any green signal, we need to get an approved national coal policy," the government official said.

A committee appointed by the ministry of power, energy, and mineral resources submitted a draft coal policy to the government last week for approval.

"Bangladesh is facing a recognised shortage of energy and power and the situation is worsening, ... and coal-fired power stations are being seriously discussed by the government and people," said Gary Lye, chief executive officer of the Asia Energy Corp (Bangladesh).

Bangladesh faces a power deficit of up to 2,000 MW against demand of 5,000 MW daily, energy officials said.

Frequent power failures cut the country's gross domestic product by around $1.0 billion annually, the World Bank said, and would need $10 billion invested over the next 10 years to overcome the shortages.

Asian Development Bank had said they would assist the authorities to build power plants to generate 2,000 MW at Phulbari.

"Before financing to a major power station, one needs to have a fuel supply guarantee. With the plus 35 years life span of the Phulbari Coal Project, Asia Energy is in a position to offer such a guarantee," Lye told Reuters.

Asia Energy mining company is lining up an offer to invest $3.0 billion in a Bangladesh coal project, which can produce 15 million tonnes of coal a year and can give the state $7.8 billion in revenues over 30 years, Lye said.

"We are ready to start work as soon as we receive green signal from the authority," he added.

During the feasibility study in 2004-2005, Asia Energy drilled 108 holes and defined resource of 572 million tonnes of high quality coal at the Phulbari coal basin project.

The current coal reserve in the country's five coal-fields is around 2.55 billion tonnes, including Phulbari, officials said.

Experts said gas reserves in the country were fast depleting, so its power plants should be coal-based.

Internet Edition. January 27, 2008, Updated: Bangladesh Time 15:00 PM

Asia Energy plans to set up 1000mw power plant: $2b to be invested to develop Phulbari Coalmine: CEO

Asia Energy plans to build a 1000-MW power plant in its prospective Phulbari Coal Mine Project area for optimum utilization of the mine's coal.

The UK-based coal-mine developer has announced their plan recently considering the country's electricity demand, now increasing at a rate of about 8-10 percent a year.

However, implementation of the power project will depend on government approval to a development scheme submitted by the company in 2005.

The government is yet to approve the Asia Energy's development scheme as it was waiting for adoption of a national coal policy on the basis of which all the future development projects in the coal sector will get approval.

Now a draft coal policy has been framed and it is expected to be approved by the government within a few months, through a careful vetting of the maiden policy for the up-and-coming sector of the country's natural resources.

As per the development scheme, the Asia Energy will invest over US$2 billion to develop the Phulbari Coal Mine project through open-pit mining method from which it would annually produce 15 million metric tons of high-quality coal.

Asia Energy (Bangladesh) Corporation's CEO Gary N Lye said that the proposed power plant would consist of two units, each having 500-MW generation capacity.

He said his firm has a plan to extend the generation capacity of the power plant to 2000 MW considering the future electricity demand.

According to Gary, the power plant was designed to set up within the Phulbari Coal Mine area as a mine-mouth plant aiming to reduce the cost related to transportation of the coal.

The country has been facing a nagging electricity crisis as it could produce about 3500-3600 megawatts of power against a demand for more than 5000 MW. The shortage always prevails at 1500-2000 MW.

The government is aggressively trying to reduce the shortage by installing new plants. But fund constrains have been the main barrier.

Sources said if the government gave approval to the Asia Energy's development scheme, it could be a breakthrough in its effort to resolve the power crisis.

As per the Power System Master Plan 2005, the country will need 42,000 MW additional electricity by 2025 to meet the growing demand.

Of this, 37,000MW power will have to be generated with coal as the country's gas reserve is proceeding towards depletion.

Experts believe that the present gas reserve in the country would exhaust by 2015 if no new discovery could be made in the meantime.

The country's total proven and probable recoverable gas reserve is 20 trillion cubic feet (tcf) from 22 gas fields, of which 5 tcf has already been consumed.

On the other hand, country's coal reserve is estimated to be 2,514 million tons.

The government is also considering not allowing any new gas-based power plant after 2011 because of limited gas reserve. Rather, its target is to encourage installing coal-based power plants after 2011.

Coal Rises in Asia, Europe as Supply Drops in Australia, China
2008-01-28 09:34 (New York)


By Christopher Martin
Jan. 28 (Bloomberg) -- Coal rose to a record in Asia and
also advanced in Europe as floods in Australia and snow storms in
China restricted output, spurring generators to secure supply.
Anglo American Plc today said operations have resumed at
five South African mines shut Jan. 25 because of power shortages.
Coal prices at Australia's Newcastle port, a benchmark for Japan,
South Korea and Taiwan, jumped 3.9 percent to a record $93.35 a
metric ton in the week ended Jan. 25, according to globalCOAL.
European coal advanced to a two-week high.
``It's difficult to see in the next 18 months to two years
who would have the capacity to significantly increase supply,''
Graham Chapman, managing director at Richmond, U.K.-based
consultant Energy Edge Ltd., said by telephone today.
In Australia, the world's biggest coal exporter, Macarthur
Coal Ltd. and Wesfarmers Ltd. said they wouldn't be able to meet
contract supplies from some mines in Queensland state after heavy
rain. China ordered domestic coal shippers to halt exports after
heavy snow and rail congestion shut supplies to 5 percent of the
country's coal-fired generators.
Coal for delivery to Amsterdam, Rotterdam or Antwerp with
settlement from April through to the end of June gained $1.25, or
1 percent, to $125 a metric ton as of 9:32 a.m. in New York,
according to ICAP Plc prices. That's the highest since Jan. 10.
Weglokoks SA, Poland's largest coal exporter, said today it
has no supply available to sell to clients without existing
contracts. Poland was the 10th-largest exporter of coal used in
power plants in 2006.

Indonesian Supply

PT Bumi Resources, Asia's third-largest coal producer, and
smaller rival PT Berau Coal today said they can't increase
production because of government commitments and a lack of
equipment.
Taiwan Power Co., the island's biggest electricity producer,
said it plans to buy coal in the spot market because of concern
China will stop exports. The utility issued a tender last week
for about 1 million metric tons of coal and may buy more in the
spot market.
``Even before these developments, spot prices for coal and
coke were at record high levels,'' Macquarie Group analysts led
by Jim Lennon said in a report. ``Current price negotiations for
annual contracts could be settled at much higher levels than
previously thought.''
Xstrata Plc, Rio Tinto Ltd. and PT Bumi Resources will seek
higher contract prices for 2008, with Australian coal likely to
fetch more than $100 a ton at loading ports, compared with $55.65
a ton in 2007, Christine Salim, an analyst at Samuel Sekuritas in
Jakarta, said in a note to clients today. The global average may
be $80 a ton this year, and $90 a ton in 2009.

European Coal

European coal prices increased 87 percent in the past year
as utilities from Germany's E.ON AG to Enel SpA in Italy sought
an alternative to increasingly expensive oil and gas, and India
stepped up imports from South Africa. Rising prices in Europe and
Asia bolstered a U.S. market that hasn't been linked to the
international coal trade for two decades, because the country
produces enough to meet domestic use.
``If these problems linger, there's going to be significant
pressure on a market that was already robust,'' Steven Leer,
chief executive officer of Arch Coal Inc., the second-largest
U.S. producer, said in a Jan. 25 interview from St. Louis.
The other primary coal-exporting countries, Indonesia and
Colombia, are already at or near capacity and may struggle to
boost supplies, he said.

Export Markets

``Our ports are a little congested, but we still have wiggle
room to sell into export markets,'' Leer said.
Coal for delivery to Big Sandy Barge, a benchmark for the
Eastern U.S., jumped $3.50, or 5.8 percent, to $63.50 a ton in
spot trading last week, according to data compiled by Bloomberg.
Eastern coal gained 61 percent in the past year. In the West, at
Wyoming's Powder River Basin, coal rose 33 percent to $12 a ton,
according to Bloomberg data.
Consol Energy Inc. plans to open a terminal later this week
in Baltimore that was forced to halt shipments when a portion of
a pier collapsed about four weeks ago. Consol's port can handle
about 15 million tons a year, more than twice the company's
exports in 2006.
U.S. exports may climb to 75 million tons this year from 50
million in 2006, Jeremy Sussman, an analyst at Natixis
Bleichroeder in New York, said in an interview.
The biggest U.S. producers are scheduled to report fourth-
quarter earnings this week. Analysts forecast greater profits at
three of the top four producers, because of higher prices and
increasing demand internationally.

--With reporting by Claire Leow in Singapore, Alistair Holloway
in London, Winnie Zhu in Shanghai and Katherine Espina in
Singapore. Editor: Dan Stets, Stuart Wallace

To contact the reporter on this story:
Christopher Martin in New York at +1-212-617-5198 or
cmartin11@bloomberg.net.

a nice tic up today aj , may be things starting to fall in to place ? :)

Morning Smiler, another cracking morning.

Not bad ! :) just be good if this comes off ! could be a big pay day,.... could of got this at 90p 3 weeks ago !!!!!!

Have kept these for a while now, so am happy it is back at these levels.

Will be even happier when we get the go ahead with the project. :-)

AGREE 5 + Sounds very good ! :)

Coal crunch strikes Asia as prices surge
Friday, 01 February 2008

http://www.independent-bangladesh.com/200802011261/business/coal-crunch-strikes-asia-as-prices-surge.html

Polo Resources Limited
01 February 2008


1st February 2008


Polo Resources Limited
('Polo Resources' or 'the Company')

Acquisition of Interest in GCM Resources plc

Polo Resources Limited (AIM:PRL), the natural resources investment and mining
company, announces that it has reached agreement to acquire an important
strategic interest in GCM Resources plc ('GCM'), formerly known as Asia Energy
plc, representing approximately 20.5 per cent. of GCM's issued share capital.

Polo Resources has entered into an agreement to purchase 10,000,000 GCM ordinary
shares from RAB Special Situations (Master) Fund Limited ('RAB') for a total
consideration of 9,000,000 in cash and 72,340,425 ordinary shares of no par
value in the capital of Polo Resources, which are to be issued to RAB (or their
nominee) on completion. Completion of the acquisition of the GCM stake is
subject to shareholder approval at a General Meeting of the Company.

GCM, an AIM quoted London-based resource development company (AIM:GCM), is
engaged in developing a world class coal mine and power plant project in
Bangladesh, the Phulbari Project. The mine life is expected to be more than 30
years, with production of 15 million tonnes at full capacity of mostly export
quality metallurgical and thermal coal. The Phulbari Project plans to add to
Bangladesh's energy security by reliably delivering coal to the domestic market.
There is the potential to install up to 1000 MW of coal fired power generating
capacity at the mine site.

In addition, GCM has invested in GVM Metals Limited, whose primary focus is to
bring various South African coal properties to production. This investment
provides GCM with a meaningful stake in the South African coal sector and the
opportunity to assist development of a number of underground and open-cut coal
mines.

A meeting of the shareholders of the Company will be called in due course at
which the resolution to approve the acquisition of the GCM shares will be
proposed.

Stephen Dattels, Chairman of Polo Resources, said:

'The GCM acquisition represents a strategic opportunity as Polo Resources seeks
to become a major international coal mining and exploration group. Our strategy
is to acquire interests in coal projects strategically located to serve the
rapidly growing Asian market.'

Contacts:

From the Polo website:

The Company's issued share capital consists of 429,602,000 Ordinary Shares of no par value. Issue price of 5p. The Company does not hold any Ordinary Shares in Treasury. As of 27 August 2007 the Company has been notified, in accordance with the Disclosure and Transparency Rules, of the following shareholdings amounting to 3% or more of the ordinary share capital of the Company:

Name
Number of Ordinary Shares
Percentage of issued share capital

Angstrom Capital Limited 60,000,000 13.97%
Chiropo Company SA 60,000,000 13.97%
Guy Elliott 20,000,000 4.66%
SPGP 12,000,000 2.79%
RIG III Fund Limited 37,000,000 8.61%
RAB Special Situations (Master) Fund Limited 20,000,000 4.66%
Libra Fund LP and Libra Offshore Ltd 42,000,000 9.78%
Xerion 20,000,000 4.66%
Adrian Lungan 20,000,000 4.66%

In accordance with the AIM Rules (Rule 26), in so far as the Company is aware, the percentage of the Company's issued share capital that is not in public hands is 55.33%.

National energy sources-National coal policy to be announced soon
Saturday February 02 2008 23:44:28 PM BDT : Business & Economy
National coal policy to be announced soon

National energy sources

The government is expected to announce the national coal policy soon in order to ensure proper utilisation of the natural resources in the greater
interest of the country.

The draft of the proposed coal policy are being finalised with the goal of ensuring optimum production. The objective of the optimum production policy is to ensure more production of coal through ensuring pollution-free environment so that coal.
Sources said, the government is formulating the national coal policy in a bid to free the countrys natural resources from all sorts of corruption and irregularities as the previous governments made several decisions regarding the countrys fuel sector ignoring the national interest on the plea of attracting foreign direct investment (FDI) resulting in huge financial losses to the country.

The country requires at least 1200 metric tons of coal to produce power till 2035. The country, however, has a stock of some 1168 metric tons of coal. So, there is no option but to formulate national coal policy as soon as possible to ensure proper utiliation of the countrys coal resources, sources said

Wednesday February 06 2008 23:54:21 PM BDT : Business & Economy
Draft of coal policy soon


The government is working to revise the countrys energy policy to meet the growing demand for power and energy and the draft of a coal policy will be finalised soon.

This was stated by the Energy and Mineral Resource Secretary Mohammad Mohsin while talking to reporters after attending a roundtable on Energy Alternatives for Bangladesh at the Jatiya Press Club on Wednesday.
Replying to a question, the Energy Secretary said, "the Government is frustrated as the energy and power supply is not growing proportionately in line with the increased demands." Mohsin said the offshore bidding will start in the next dry season.

Earlier, speaking as the Chief Guest, the Energy Secretary said, "the energy and power demand is rising by 6% per year. The Government has been going up for further exploration of gas and coal to boost up the energy sector in a bid to meet the increased demands as soon as possible."
Countrys mineral resource affairs magazine named The Energy and Power organized the roundtable in collaboration with GTZ, where ADB country director Hua Du spoke as guest of honor. Hua Du urged the government to take urgent measures to ensure the growing demand of power and energy utilising the conventional resources like coal and gas. She said, "before applying any method of coal mining in any place, the government should discuss with the local people to ensure the mutual benefits of all sections."
The ADB country director suggested the government to use the hydro-power to fulfill the increased demand for electricity through cooperation among neighbouring countries.

Former Director of Petrobangla Muinul Ahsan said the Government should finalize the coal policy as early as possible and it must go into coal mining immediately to solve the energy crisis. He also proposed to import gas from Myanmar. They cautioned that if the Government fails to take immediate steps to find alternatives energy, the country will face a serious energy crisis by the end of year 2011.

BIDS Director Mohammad Asaduzzaman presented the keynote paper on Energy Alternatives for Bangladesh at the roundtable with the Power and Energy Editor, Mollah Amzad Hossain, in the chair.
Speakers blamed the government for the energy crisis saying, "Managing inefficiency by the bureaucrats and habit of politicizing everything is responsible for the crisis." All discussants said the Government has to look for sources of alterative energy immediately and it also should work closely with the development partners to find solutions to the energy crisis. They said the government should set up coal-based power plants in lieu of gas based -plants as the cost of power generation by using coal is cheaper than gas.

Former Energy Secretary Quamrul Ahmed Siddique said the per capita income of the people of countrys western areas is lower than the people living in eastern parts, because all the industrial establishments are located in the eastern areas where gas is available. He calls upon the government to formulate an energy efficiency act like India for the maximum use of the countrys reserved mineral resources.

http://nation.ittefaq.com/issues/2008/02/07/news0996.htm

.

!!

http://www.thedailystar.net/story.php?nid=22863

Make quick decisions on big investment proposals

Foreign investors' chamber has urged the government to immediately decide on the pending big investment proposals from Tata and Asia Energy.

"The country should have a double digit economic growth, which cannot be achieved without smooth flow of foreign direct investment," Waliur Rahman Bhuiyan, president of the Foreign Investors' Chamber of Commerce and Industry (Ficci), said at a monthly luncheon meeting held at a city hotel yesterday.

The Ficci chief expressed his frustration that the chamber has no representation in the Better Business Forum. "How the innovative forum could succeed when the lone body for foreign entrepreneurs is kept aloof from the purview of Better Business Forum, he said.

Terming the existing investors as 'ambassadors to other potential investors', Bhuiyan said when they are not happy enough how could they invite others to invest in Bangladesh.

BoI (Board of Investment) Executive Chairman Kamal Uddin Ahmed assured the Ficci of considering its representation to the Better Business Forum.

He also requested the Ficci members to submit their grievances to the BoI in written.

UAE-Bangladesh Investment Company Limited (UBICL) Managing Director SM Akber stressed the need for an equity protection law.

He said, "Without an equity protection law foreign investors will not feel encouraged to invest in government or private equity."

Other members alleged about long procedural delay in opening up a branch or liaison office in Bangladesh.

It takes around a year or more than a year to get approval from many government desks for doing this simple job, they said.

Staff Reporter

Local miners yesterday returned to their work after a three-day strike at the state-run Barapukuria coal field under Phulbari upazila in northern Dinajpur district.

The workers, who went on strike demanding a 90 per cent pay hike and shorter working hours, yesterday resumed production as the Barapukuria Coal Mining Co Ltd (BCMCL) met their demand.

It was, however, could not be ascertained as to how much of their wages was increased and working hours reduced by the coal mine management.

The miners were demanding a pay rise of more than 90 per cent and shorter working hours by 2 hours to 6 hours since October last year,

The BCMCL has started since mid-January coal extraction from the mine located nearly 340 kilometres north west of Dhaka. Talking to journalists after the resumption of mining, BCMCL Managing Director Abdul Aziz Khan said the workers were now satisfied as the company has fulfilled their basic demands.

He said at least 4,000 tonnes of coal could not be extracted from the mine due to the three-day strike. More than 700 local miners had stopped extraction of coal used to fire two coal-based power-plants with egawatts. However, no Chinese miners joined the work stoppage, Aziz Khan said.

BCMCL developed the coal field with technical assistance from Chinese coal firm China National Machinery Import and Export Corporation (CMC). Both firms extract more than 2,000 tonnes of coal every day.

Most of the country's five coal fields with around 2.55 billion tonnes of reserves are located in Dinajpur area.

a Nice Tic up !!! with luck it will hold up !

:

http://in.reuters.com/article/businessNews/idINIndia-31923320080213

DHAKA (Reuters) - Bangladesh Power Development Board has approved a proposal by an Indian energy firm to install a 150 megawatt power plant, a senior official said on Wednesday.

GCM Resources PLC
14 February 2008

Form TR-1 with annex. FSA Version 2.1 updated April 2007


For filings with the FSA include the annex
For filings with issuer exclude the annex


TR-1: Notifications of Major Interests in Shares


1. Identity of the issuer or the underlying issuer of GCM RESOURCES PLC
existing shares to which voting rights are attached:

2. Reason for notification (yes/no)

An acquisition or disposal of voting rights No

An acquisition or disposal of financial instruments
which may result in the acquisition No
of shares already issued to which voting rights are attached

An event changing the breakdown of voting rights No

Other (please specify): Agreement under DTR 5.2.1(a) Yes


3. Full name of person(s) subject to notification Polo Resources Limited, Stephen R Dattels,
obligation: Guy Elliot