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/

"

Polo Resources shares restored, co ups stake in GCM Resources
AFX


LONDON (Thomson Financial) - Polo Resources' shares have been restored on AIM as the company published its admission document detailing its recently announced acquisitions.

These include the acquisition of 26 Mongolian coal, uranium and tungsten mineral exploration licences for 2 mln usd and 25 mln shares in a reverse takeover.

Additionally, the company plans to acquire a 20.5 pct interest in GCM Resources from RAB Special Situations (Master) Fund Ltd for 9 mln stg cash and the issue to RAB of around 72 mln shares, giving RAB a 12.03 pct stake in Polo.

Since it announced this acquisition on Feb 1, Polo Resources has been buying further shares in GCM, giving it a total 25.05 pct stake on completion, or 28.49 pct for the concert party including executive chairman Stephen Dattels and non-executive director Guy Elliott.

Polo said in the document that it sees the increase in demand for thermal coal for power generation and coking coal for steel production as 'a significant opportunity', adding it is focused on acquiring interests in coal projects that are 'strategically located to serve the growing Asian demand'.

In Mongolia, Polo Resources said it plans to fast track development of the Union and Ereen coal projects in 2008, targeting total production of 1 mln tonnes of coal per annum, commencing in the fourth quarter.

The group has targeted 1 bln tonnes of high quality coal defined in resources over the next two years in the Erdenetsogt, Ereen and Tsaidam basins.

'Our aim is to build a major international coal mining and exploration group with production of coal in Mongolia expected to commence during 2008, ' said Dattels.

We seem to be 'on a roll' at the moment Smiler.

lets hope so !!

I'm happy here.

And the PET team are happy.

Maybe spring is about to be sprung :0)

http://www.thedailystar.net/story.php?nid=24602

I now turn to the prospect of setting up coal-based power plants particularly in the underdeveloped northwestern region of Bangladesh. This will remove internal economic disparity and also help to generate employment. Experts have recently revealed that the country has about 2.5 billion tons of coal reserve, which is equivalent to nearly 77 trillion cubic feet of natural gas. It is important that we exploit this potential in a manner that helps to create balance within the economic activities being carried out in the different parts of the country. There has been debate over the method of exploitation of this valuable resource. Questions have been asked about open cast mining as opposed to the traditional method of underground mining. Economists and environmentalists have been divided over this issue. There has also been the question of resettlement and rehabilitation of the affected population. All these factors have made the issue complex. Nevertheless, this is a matter that has to be resolved in national interest. The government has to play a more pro-active role and find least common denominators that will lead to a sustainable solution. We have to agree on an acceptable solution that will be consistent with international practices

http://www.tehrantimes.com/index_View.asp?code=162051

Monday, February 25, 2008 | Volume: 10265

Asia Energy to build 1,000 MW Bangladesh power plant

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, 350km (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 recognized 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 tons 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 tons 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 tons, including Phulbari, officials said.

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

RNS Number:7945O
GCM Resources PLC
26 February 2008


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

1. Identity of the issuer or the underlying issuer of existing GCM Resources Plc
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 CAPITAL PLC
(iii):

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

5. Date of the transaction (and date on which the threshold is 01/02/2008
crossed or reached if different)(v):

6. Date on which issuer notified: 26/02/2008

7. Threshold(s) that is/are crossed or reached: 10%

8. Notified details: n/a

A: Voting rights attached to shares

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

ORDINARY SHARES 12,671,303 25.96% 2,785,083 2,785,083 n/a 5.71% n/a

GB00B00KV284
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

2,785,083 5.71%

GCM Resources swings to H1 pretax profit of 2.071 mln stg vs loss 1.025 mln
AFX


LONDON (Thomson Financial) - GCM Resources PLC swung to a pretax profit for the first-half ended Dec 31 due to the gain made on sale of its interest in CCEC Ltd.

The company posted a pretax profit of 2.071 mln stg, compared with a loss of 1.025 mln stg a year earlier.

It said exploration expenditure relating to the company's priority Phulbari coal project fell to 940,000 stg from 1.83 mln, reflecting the reduced activity while awaiting approval from the Government of Bangladesh, to proceed with the next stage of the project.

GCM Resources PLC
11 March 2008

11 March 2008

PRESS RELEASE

GCM Resources plc

GCM appoints Mr Neil Herbert as Non-Executive Director


GCM Resources plc ('GCM') announced today that Mr Neil Herbert will be joining
the Board as a Non-Executive Director with effect from the 11 of March 2008.



Neil Herbert (aged 41), was Finance Director of Uramin Inc. from July 2005 until
its acquisition by Areva in August 2007. He previously held the position of
Finance Director at Galahad Gold PLC, International Molybdenum PLC, Kalahari
Diamond Resources PLC and HPD Exploration PLC. Neil Herbert was also Chief
Financial Officer of Argentinean gold explorer Brancote Holdings PLC until its
acquisition by Meridian Gold Inc in 2002 and was Group Financial Controller of
Antofagasta PLC when the Los Pelambres and El Tesoro copper mines were brought
to production. Before joining the mining sector Neil Herbert worked for
PricewaterhouseCoopers. He is a fellow of the Association of Chartered Certified
Accountants. Neil Herbert currently serves as a Non-Executive Director of
Templar Minerals Limited and Sunrise Diamonds Plc.



Steve Bywater, GCM's Chief Executive said:



'We are delighted to have a person with Neil Herbert's credentials and
experience in mining join the Company and welcome him to the Board of GCM.'

DJ Myanmar Rejects Bangladesh Request For Gas - AFP (Dow Jones News Service)
Updated: Tuesday, March 11, 2008 09:16AM ET

DHAKA (AFP)--Myanmar has rejected a request to sell gas to Bangladesh to help the country meet its growing energy crisis, saying India and China are its top priorities, a senior Dhaka official said Tuesday.

Bangladesh's foreign secretary made the request during a visit Myanmar last month, deputy energy minister M. Tamim said.

"They said they would sell their gas to India and China but cannot export gas to Bangladesh at the moment. Myanmar would consider selling gas to Bangladesh only after new discoveries are made," he said.

The decision is a blow to Bangladesh which faces a daily shortage of at least 100 million cubic feet of gas. It needs the fuel to help feed its economy, which expanded by a strong 6.6% in the last financial year to June 2007.

The energy shortage would become acute after 2009 if new gas finds are not made, Tamim said.

"Now our industries are expanding quickly and we have huge investments in gas-based power plants. We're facing a growing energy crisis," Tamim said.

Bangladesh has daily demand for 1,800 million cubic feet of gas but the country's 23 gas fields can provide only 1,700 million cubic feet as lack of investment in new exploration since late 1990s has outstripped supply.

"Since 1999, there was hardly any investment in new gas discoveries as the companies did not see any market for gas here," Tamim said.

The southeastern city of Chittagong is home to the country's largest gas-guzzling industries such as fertiliser and steel and is running short of gas.

"I've told the Chittagong-based companies not to hope too much. Some big companies which want to expand are now suffering and the situation may continue for a while," Tamim said.

In an effort to step up future supply, the country's military-backed government has already invited bids from foreign oil companies to explore for gas and oil in the hydrocarbon-rich Bay of Bengal.

In addition, companies such as Chevron (CVX), Total (TOT), Cairn Energy and Bangladesh's state-owned Bapex have started exploring for oil in their onshore and offshore blocks, Tamim added.

Bangladesh has proven recoverable gas reserves of 14 trillion cubic feet according to the latest survey, the deputy minister said.

The reserves are expected to last until 2022 if no new discovery is made, he said.

Mention in todays Sydney Morning Herald:

"Global Coal Management plc (LSE: AIM: GCM) has formed an Alliance with Aura to explore for uranium in Africa. GCM are providing up to $400,000 over two years to fund exploration activity, beginning in West Africa."

Also in the Phulbari Resistance Blog:

"Without the developer's presence in the region and fearing reprimand from a heavy handed government, local opponents to the projects have little recourse within their own country or with project sponsors."

The resistance recently contacted UBS:

"Responding to questions about their 11% investment listed in GCM Resources Plc, the second largest listed shareholding, UBS denies any strategic interest in the company. The large multinational communicated that "it does not comment on potential or specific client relations or transactions or its investments in any particular company".

ADBs Private Sector Arm Considering Funding Coal Project in
Northwest Bangladesh

Location Bangladesh
Total Cost $300 million
Funding $100 million Private Sector Loan; $200 million ADB
Status Proposed ADB Private Sector Project; Due Dilligence Mission:21 Feb 2006 to IV Apr 2008 (estimated); Private Sector Committee Meeting: IV May 2008 (estimated); Board Approval: 03 Jun 2008 (estimated)

Project Specifics
Eight million tonnes of coal would be exported by rail and barges through the Sundarbans, one of the three largest mangrove forests in the world which is also an international Biosphere Reserve by UNESCO. Four million tonnes would be transported to India through the rail network and three million would be used for domestic consumption. GCM has proposed a 500 MW powerplant at the mine site. According to the Summary Environmental Impact Assessment (SEIA), the project would relocate 40,000 people (9000 households) and cover an area of 5,192 hectares (ha); the open pit at any given time would cover an area of 2,180 ha.

ADB Involvement
Asian Development Bank's Private Sector Operations Department (PSOD) is promoting this project for an investment loan. PSOD staff believe that the project will economically benefit Bangladesh and provide it much needed energy. ADB has approved the SEIA and is awaiting final resettlement action plans and indigenous people's plans. Under ADB rules, the private client interested in ADB funds can also conduct the mandatory studies required for high environmental and social impact projects such as Phulbari. ADB "safeguard specialists" on involuntary resettlement, environmental impacts and indigenous people are expected to approve these studies before the project is sent for Board Approval.

:

http://uk.reuters.com/article/oilRpt/idUKDHA6669620080316

DHAKA, March 16 (Reuters) - British oil and gas firm Cairn Energy Plc (CNE.L: Quote, Profile, Research) has discovered new gas in one offshore well but has failed to find any in two other offshore fields in the Bangladesh sea, government officials said on Sunday.

The firm completed exploratory drilling in the Hatiya structure in the Bay of Bengal, 60 kilometers (40 miles) south of the port city of Chittagong, an official said.

"The firm informed us today that they have encountered hydrocarbon/petroleum in the structure which is not commercially viable," said Muhammad Muqtadir Ali, a director of state-run Bangladesh Oil, Gas, and Mineral Corporation or Petrobangla.

But Cairn has discovered new gas in a well at the Sangu offshore field.

"The firm will be able to add at least 25 to 30 mmcfd of gas in its total production," another official said.

Earlier, the firm did not find any commercially viable gas in Magnama, another offshore field in the sea.

"Now the firm proposed to conduct a 3D seismic survey in both the fields either in late December this year or early next year," Muqtadir told Reuters, referring to Hatiya and Magnama.

After the 3D survey is completed, Cairn will conduct an appraisal for a final decision which will cost altogether about $90 million for each field, the official said.

Muqtadir said the firm had already spent about $200 million in offshore exploration work.

The firm started drilling after completion of 2D seismic surveys but failed to discover commercially viable gas there.

Petrobangla, based on seismic surveys, has estimated that there was a potential reserve of 3.5 trillion cubic feet (TCF) of gas at Magnama and 1.8 TCF at the Hatiya structure.

The firm operates Bangladesh's only offshore gas field at Sangu in the Bay of Bengal, producing up to 80 million cubic feet of gas per day (mmcfd).

Cairn has been in Bangladesh for more than 10 years and, along with its joint venture partner, U.S. firm Halliburton Co., has invested nearly $790 million, officials said.

Bangladesh's proven and recoverable gas reserves of 13.54 tcf are expected to be exhausted by 2011, officials said.


COAL could be the short term answer ????????????

Petrobangla Gets License for First Time to Explore Coal in Joint Venture

Monday, 03.17.2008, 11:15am (GMT)

The Bangladesh government for the first time has awarded Petrobangla a license to explore Dighipara coal zone in a joint venture with a competent private mine developer, to be selected as the strategic partner through an open tender.

The government is letting Petrobangla forge a partnership with a private mine developer to tap into the country's coal resources, with the prospect of needing billions of dollars of investment, if the exploration turns out to be successful, said a competent source.

The Bureau of Mineral Development (BMD) on February 27 granted the license to explore the 4,000 hectare Dighipara zone, where high quality coal had been discovered before. It has 100 million tons of proven coal deposit and 600 million tons of probable deposit. Petrobangla applied for the license in 2006.

However the energy ministry started pushing Petrobangla to sign a memorandum of understanding (MoU) with an obscure South Korean consortium headed by a company named Luxon, in contradiction with the government's declared intention of putting out an open invitation for tenders.

Official documents show that letters sent to the Korean address of Luxon and to another member of the consortium, bounced back in the past and the Korean embassy also could not confirm the whereabouts of those companies.

Yet the ministry on Monday decided to ask Petrobangla to frame a joint venture policy under which the MoU will be signed with the consortium.

This is in clear contradiction with the ministry's earlier approval for seeking a strategic partner through an open tender for exploration and development of Dighipara coal zone, said a competent source.

Petrobangla already informed the ministry about the contradiction on February 25, clearly stating, There is no scope for considering any draft MoU for Dighipara coal field development and for setting up a power plant at the mine mouth.

Petrobangla is waiting for the energy ministry to approve the criteria for bidding for being a partner in the Dighipara coal exploration project. A meeting on the matter is scheduled for Sunday. Once the government approves the criteria for bidding, Petrobangla will go for publishing the tender schedule in the media.

With coal price soaring up to 110 dollars a ton globally due to high demand, investors are showing tremendous interest. Even the future domestic demand for coal is also projected at 13 million tons a year for the next 10 years, for generating additional power to meet the rising demand for the latter, as natural gas supply to generate power will not be able to cater to the demand for power.

Dighipara is one of the five identified areas where geologists earlier detected coal deposits.

Petrobangla is currently running Barapukuria coal mine developed by China while a private company Asia Energy submitted a proposal to develop Phulbari coal mine. Besides, the license for another zone, Khalashpir area, was awarded to controversial and incompetent company Hosaf.

Barapukuria coal mine failed to become profitable due to past corruption and flawed mining designs, Phulbari mine's future also looks uncertain due to controversies surrounding Asia Energy, and Hosaf's venture is too sketchy to be taken seriously.

Under the circumstances, Petrobangla's Dighipara venture has all the promises to become successful, said a high official adding, We believe, if there is no undue interference from powerful lobbies, Dighipara will be the country's first large-scale mine.

Petrobangla's license says the exploration should refrain from any activity that might adversely affect the bio-diversity and the environment, or harm agricultural land. Prior to the exploration, Petrobangla will obtain permissions from the environment department, ministry of land, the local government, and other relevant departments. The license was issued under the Mines and Minerals Rules, 1968.



On June 27 of last year, the energy ministry approved a decision that Petrobangla may obtain a strategic partner through an open tender upon government approval of the coal policy, and may form a joint venture company with the partner.

Ershad calls for provincial govt system

Former President and Jatiya Party Chairman Lt Gen (Retd) Hossain Mohammad Ershad emphasised on creating provinces in the country as he said the present unitary system of government has failed to work properly in achieving the development goals.

The former President advised the Forum leaders to intensify their demands for extraction and local utilisation of coal at Phulbari in Dinajpur.

Opting for open-pit mining extraction of coal he said, "It's better to extract coal by open-pit mining system as it ensures 87 per cent extraction, while the underground mining can extract 15 per cent at best.

http://nation.ittefaq.com/issues/2008/03/20/news0575.htm

Bangladesh Energy Security Entering Red Zone
Khondkar Abdus Saleque
Thursday, 03.20.2008, 05:56am (GMT)

Spring for Bangladesh is whistling away. The sweet singing cuckoos will soon stop singing. Hot humid summer is about to set in. Kal Boishaki has not started yet. But alarm bell has started ringing in Bangladesh Energy sector - gas and power sector. For the last 6 years or so Bangladeshis are facing acute power supply crisis, water crisis during every summer courtesy our under performing energy sector. For the last two years food crisis, price spirals of essentials have been added to the miseries. It is understood food prices are sky rocketing all over, oil price is creating new records. It is a crunch time for all nations to keep pace with the rising trend of food and oil prices. Politicians are not running affairs of Bangladesh for almost a year and a half. Politicians are blamed for not reflecting the dreams and aspirations of the nations while ruling the country and they also do not hesitate to accept that. Two lady PMs of the last three terms of democratic government are in solitary confinement. Many of the leading politicians and state leaders are spending time in the jails.



But this terrible situation as it is prevailing now and emerging is not expected as the persons running the country backed up by patriotic armed forces are believed to be very honest wise efficient and committed. The so called champions of democracy USA and EU countries are poking nose in our internal affairs in many different ways. Some of them are even trying to tutor our policy makers and political leaders. If they are so sympathetic to our cause they should also support us in our struggle for energy security and food security. The energy situation is worsening every passing day with very little prospect of immediate improvement.

The prevailing energy security and food security are very critical and are gradually slipping out of control. Accomplished citizen group which includes the chief of Regulatory Reforms Commission Dr.Akbar Ali Khan in a recent round table discussion opined that the country is in the midst of silent famine. Various initiatives of the government so far failed to arrest the rocketing price hike of essentials. Power load shedding has started creeping in. Summer will invariably see the energy situation worsen. Price spiral of essentials may be linked with the global situation. But for energy crisis the Care Taker Government must also share partial blame now as it has well past its honeymoon days. There is little scope now to blame previous administration for everything. People do not find any ray of light at the end of the tunnel. Time has arrived to objectively analyze the pains and gains of the energy sector in recent times. Let us have deeper analysis of the situation.



There is tendency in our culture that we always try to hide the actual situation in official figures. If the actual power demand (excluding significant suppressed demand) is about 4800 MW per day we say about 4200 MW so that the real deficit remains hidden from the public. No one gains anything but we still do it. This is ridiculous. The immediate past Energy Advisor expressed annoyance for this kind of misleading reporting of power demand and supply. Anyway for the sake of analysis let us take the present national power demand figure as 4200MW per day. The government figure indicates the generation against this is 3771 MW. So at the generation level the agreed deficit stands at 439MW. If the 20% over all system loss is accounted for the supply to end-users can be calculated as 2478. This 20% system loss is the transmission loss and other technical losses and not the theft and meter bypassing by the syndicate. The deficit is about 1293MW per day. The summer will obviously see increase in demand to about 5500 MW from end April. There will be very little improvement in generation by then. So the deficit at the end users level will become about 2500MW soon. . This means we will fail to address about 40 % of our actual demand. If we compare the the emerging situation with that in 2006 summer we may not find the situation has actually worsened. So as far as improvement in the power sector is concerned the CTG has very achieved very little or nothing at all. The power supply is directly linked with national growth and development and energy supply is directly linked with food production and transportation. So if there is no balanced growth, deficit in one area is bound to adversely affect the other. That is exactly what is happening. The power demand is increasing about 8-10% every year. But there has been no mentionable increase in generation or expansion of transmission or distribution infrastructure.

Coal Policy of Bangladesh will be Finalized Soon
bdnews24.com
Friday, 03.21.2008, 04:11pm (GMT)

The government of Bangladesh will finalize the coal policy soon, as the energy and power sector is set to expedite decision-making, a special aide to the chief adviser said Friday.

Dr M Tamim, special assistant to the chief adviser in charge of the energy, power and mineral resources ministry, said that 80 percent of recommendations in the energy policy formulated in 1996 had not been implemented in the past 12 years.

"Institutional strengthening and financial assistance are a must to make things happen now," he said, speaking as chief guest at a Sheba Bangladesh Foundation roundtable on 'Energy crisis and possibilities'.

Tamim said the 1968 Mining Act must be amended and the coal policy should be finalised as soon as possible.

Tamim said: "We have to maximize the use of foreign aid and technical assistance in the energy and power sector. We will have to generate 20,000 MW power by 2020 if we want to fulfill millennium development goals."

Decisions about all these issues must be taken without delay, he said with a warning that the huge subsidies for the energy sector had posed a serious burden on the government, which threatens to slow economic progress.

Dr Mushfiqur Rahman, general manager of Asia Energy, said the government needs to take a few difficult but essential decisions.

Mollah A Amzad Hossain, editor of English magazine Energy and Power, said the government should consider the demands raised by civil-society watchdogs and pressure groups and ignore opposition from protectionists in order to help fuel growth.

Thursday, April 3, 2008 01:18 PM GMT+06:00


'Varying opinions block natural resources exploration'
Staff Correspondent


Finance and Planning Adviser Dr AB Mirza Azizul Islam yesterday said difference in opinions has become a major obstacle to exploration of natural resources and their exploitation for generating power.

Bangladesh is a country where difference in opinions is widespread. Some quarters are now opposing offshore exploration, and exploitation of coal on environmental grounds, he said while speaking at the launching programme of Business Directory of International Chamber of Commerce-Bangladesh (ICCB) at the Bangladesh-China Friendship Conference Centre.

Referring to the power crisis in the country, the finance adviser said if they (those opposing exploitation of coal) are so concerned about environment pollution, they should live in caves where there is no pollution.

There was no new power generation in the last six to seven years, but the present government has initiated the rental power purchase scheme, which is expected to add some power to the national grid soon, he added.


http://www.thedailystar.net/story.php?nid=30533

Good News?

April 14, 2008


ADB to wait for decision on Phulbari coal mine project
Dispelling a rumor that it has pulled out from financing the Phulbari coal mine project, Asian Development Bank has said it would wait for a government decision in this regard.

Asian Development Bank, in a statement said that "ADB will continue to monitor the situation on the ground with full sensitivity to local conditions and we will also wait for Bangladesh government's decision on how to proceed in harnessing the rich energy resources, including those of Phulbari.

The release added that In the interim, we think, it is premature for ADB to continue dialogue with the private sector under the current circumstances. So, at this stage we are completely open to the suggestions of Bangladesh, civil society and other stakeholders and prepared to review our engagement in this project to ensure that all sensitivities, including concerns relating to safeguard issues are fully considered."

According to sources, the ADB was keen to finance USD 300 million, about 10% of the total fund requirement, to implement the project. The Asia Energy conducted a feasibility study on its plan to develop the Phulbari project through an open cast mining method. It submitted the study report, which included an environmental impact assessment and a development plan, to the government in 2005. But the government is yet to approve the project.

Sources said a number of NGOs, who are opposing the open pit Phulbari coal mine project and demanding its developer UK based Asia Energy to go, have spread the rumor that the ADB has decided to withdraw from the project. The NGOs have also been carrying out a campaign internationally and pursuing the ADB to abandon its project financing plan.

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http://energybangla.com/index.php?mod=article&cat=EBReport&article=650

onday, 04.21.2008, 02:47pm (GMT)

Interests of local residents in the coal mining areas have to be given topmost priority in finalizing coal policy, said Dr M Tamim. Bangladesh has to swift to other power sources as natural gas is about to exhaust. Coal is most likely the next option but its extraction strategy must have to ensure interests of local livelihood, said the Special Aide to Chief Adviser for the Ministry of Power and Energy.

According to him, it is high time for Bangladesh to develop its coalmines. But finalization of national coal policy must be considering social, geo-political and geological situation of the particular mining area. Involving local experts and ensuring full compensation is must in coal sector development, he added.

Beside compensation, coalmine development plan needs to generate employment, particularly for local women. This would ensure local cooperation in the development process, said Dr Tamim.

He was addressing at a seminar yesterday on Mining and Community Livelihood in Bangladesh, organised by Petrobangla at its auditorium in the capital. Energy Secretary Mohammad Mohsin and Chairman Petrobangla Jalal Ahmed also spoke at the seminar.

"We can't wait. Whatever the decision is, it has to be taken very fast in a transparent and accountable manner," he added.

It has to be worked out how the impacts on the environment and local community could be minimized apart from setting the priorities between food and energy security.

It is the duty of Government to ensure that the displaced people in coal mining areas would get more benefits than those who were displaced in the Uttara and Purbachal town development projects, because coal mining is more profitable business," he added.

He also said that the reserve of gas, the countries main source of energy on which 85 percent of power generation depends, is depleting very first.

The CAs Special Assistant said there might be more undiscovered gas reserves.

"If we want to discover this gas reserve, about $8 billion investment will be required. Can we afford to take risk in this huge investment?" he asked.

Mentioning the unaffordable cost involved in gas import from Myanmar and Qatar, he said the cost would be from $5 to $7 per 1000 cubic feet (mcf) against about 2.5 US dollars in Bangladesh.

Similarly, he said, the cost of coal is going up fast like that of petroleum fuel. He said a few years back the price of per metric ton of coal was $30-40, now it has gone up to $160.