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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Any ideas why the step change today?

anticipation I think ! some may have noticed that IF this comes off , this will go up ten fold ! The big question is if & when !!

Just had a look at the website again at shares and shareholding. At 48.8M shares looks like over 50% are held with Insti's and the rest PI. RAB and UBS hold 30% between them, others 20%. Leaves a free float of around 24M shares.

Shareholder % of Issued Capital
RAB Capital 19.22
UBS AG 11.60
Fidelity Group 5.98
Barclays PLC 4.32
Credit Suisse 3.90
L-R Global 3.74
Capital Group 3.07

Last updated July 2007

2006 Annual report available at:

http://www.gcmplc.com/investor_relations/

WELL not a bad day, some more buying towards the end ,lets hope the long term holders get rewarded soon !!

still some early buying, still a lot of opposition ( finger on the sell button) just in case, but fingers crossed !

Morning Smiler, quieter day today.

yes it did start slow yesterday darradev, it may hot up mid day , still you never know may come off yet !!!!

smiler, off topic I know, but you recently started a FOGL thread. (I watch them with interest having purchased some last year to test the water). Is it possible for you to also set up a thread for AUL - Aurelian. I noticed there isn't one and I don't have the knowledge/skill to do it. They are an oil and gas explorer and producer in Eastern Europe.

Background info on: http://www.aurelianoil.com/index.php?v=home


Appreciate it if you can, no problem if you say 'No'.

No Prob

Darradev all Done !!

Many thanks Smiler ! Looks good.

Vol. 5 Num 1116 Sat. July 21, 2007

Front Page


Coal can change economy if properly harnessed
5,000 MW of electricity could be generated for upto 90 years, says expert
Sharier Khan

It is coal, not natural gas, that can drastically change the country's economy if it is given proper attention.

Eminent geologist and former chief of Geological Survey of Bangladesh (GSB) Khurshid Alam said the GSB identified 13 coal basins in the northern region of the country.

Of these, only five have been explored and these alone have high quality proven coal reserve of 2,357 million tonnes (mt). Probable coal reserve in the five locations stands at 3,258 mt.

If all this coal is converted into power, it could generate 5,000 megawatt of electricity for 66 to 90 years. Khurshid pointed out that 16 mt of coal can generate 5,000 MW power for one year.

In a presentation to the government on mining prospects recently, British-Bangladeshi venture Delta Pacific Mining PLC said the latest technology used in USA, Europe and Japan and South Africa allows conversion of coal into clean synthetic liquid petroleum, synthetic gas, fertiliser and other chemical products. One tonne of coal can be converted into four barrels of petroleum, the price of which would be within $30.

In other words, Bangladesh can meet its own power and petroleum demand, save energy import costs and trigger massive economic activities.

"Yet, the rest of the coal basins have not been explored," said Khurshid, who has played a pioneering role in mapping the country's coal and mineral zones as well as contributed to discovery of various types of geological treasures in the country since the seventies.

He believes that the country is also rich in limestone and mineral deposits.

Much of these geological treasures are however difficult to be extracted because of the nature of the country's geological structure.

To tap these resources, the country needs billions of dollars of investment, high- end technology that is least invasive for the population and a proper policy vision, a number of geologists and investors told The Daily Star.

"To begin with, the government must take the GSB more seriously," said a senior geologist of Petrobangla.

The government-run GSB has made many discoveries since from the sixties but much of these drew little attention of the governments either because tapping these discoveries demands huge funds or simply because the policymakers lacked visions, he added.

Despite severe limitations of funds, research and laboratory facilities, geologists of the GSB have so far drilled 193 holes in the country for mineral exploration, stratigraphic studies, testing and for gathering other subsurface information. The GSB has also geologically mapped about 59,000 square kilometre areas of the country.

Other than coal, the GSB has discovered 150 million tonnes of peat in Bagiachanda of Gopalganj, undetermined quantity of peat in Khulna, Moulvibazar and Charkai and Paglal of Sunamganj district.

It discovered 100 mt of limestone in Joypurhat, 12.9 mt in Takerghat Lalghat, and 1.7 mt in Bagalibazar of Sunamganj.

The GSB discovered over 40 mt white clay reserve in Barapukuria, Maddhyapara and Netrokona, glass sand in Sherpur, Bahubal, Shahjibazar, Chouddagram, Moulavibazar, Barapukuria, Maddhyapara and Dighipara, mineral sand in Cox's Bazar, Moheshkhali, Kutibdia, Kuakata and Chilmari, hard rock in Madhyapara, gravel in Sunamganj, Lalmonirhat, Tetulia and Chittagong Hill Tracts.

Besides, GSB geologists also traced gold, thermal water and various types of resources during drillings. Khurshid however says the percentage of gold found in some mineral deposits is not good enough for economic viability.

"The main issue concerning coal and other mineral deposits in Bangladesh is that they all are deposited much underneath the soil. Secondly, coal seams are unusually thick. This makes it very difficult for a poor country like Bangladesh to extract coal for our use," Khurshid pointed out.

For instance, the biggest proven coal deposit lies in Jamalganj at a depth of 600 to 1,000 meters. The deposit has 1,053 mt of coal. "Such a depth means you cannot mine this coal conventionally -- open pit or underground mining. We have to use other technologies and there are technologies for this kind of mine,"he added.

The country's only operational mine-- Barapukuria mine-- has 389 mt of coal at a depth of 120 metres to 450 meters but the mine design had been faulty right from the beginning because of corruption. Its Chinese miners initially aimed for extracting only 60 mt of coal over a period of 30 years.

Then flawed mining design further dragged the mining target down to only 30 mt. Presently, the Barapukuria mining authorities are hoping for extracting only 21 mt in 30 years, which is about six percent of the total proven reserve, mining company sources said.

Phulbari coal mine, being pursued by British company Asia Energy, has a proven reserve of 572 mt at a depth ranging from 150 metres to 500 metres. Asia Energy strongly advocates in favour of open-pit mining to ensure up to 90 percent extraction of coal.

Khalashpir zone has a proven deposit of 143 mt high grade and costly cooking coal, with a probable reserve of 687 mt. The BNP-led alliance government had secretly awarded the zone's exploration licence to Hosaf Group, which had been involved in Barapukuria coal mine scam.

Dighipara coal zone has a proven reserve of 100 mt with 600 mt of probable reserve. Petrobangla has sought mining licence for this zone.

Khurshid Alam notes that the limestone deposits in Jaipurhat is 30 metres in thickness, spreading across 100 square kilometre area at a variable depth ranging between 1,140 feet and 1,700 feet.

"This can be mined. But it has another kind of problem-- internal heat. About three decades back, the Russians wanted to develop this mine. But when they started primary work, they found that internal heat of the deposit was 47 degree Celsius -- two degrees higher than initially estimated. For this, the mine ventilation cost would simply become double. At this point, the mining plan was abandoned," Khurshid added.

http://www.energybangla.com/article_det.asp?aId=593


Interesting news article . I am still Quite positive !

Two 100,000 buys in succession, wonder if they know something,Very interesting, thats a lot of on a risky share !

Taken a bit of a hammering this afternoon, is this to shake out some shares on stop loss do you think, or something more fundamental?

This is a risky share, and some PI'S could well be in profit, and selling due to some good movers, FOGL,ACU,PET !!! and need the money for more dead certs may be ? I still have a 152 ave so HERE for the long run but if this comes off I will be pleased !!

http://www.energybangla.com/article_det.asp?aId=600

Afternoon Smiler, looks like same story as yesterday with this one.

Just had a laugh, tried to post on ADVFN boards and my post was 'modified' to exclude the name of the board. Wonder if that happens here as well?

:-)

Edit - Looks like we live in a more open and tolerant society here.

Darradev,I see your GBP WAS UP 4% at closing ! a lot of profit taking on fogl today ! I am still holding, AS for GCM time will tell ! still hopefull :) edit, I do post on the Dark side as you can see, but I know what you mean !!!

Bangladesh Energy: Poor Policy, Wrong Strategy

published 23/7/2007

Khondkar Abdus Saleque

Bangladesh, now one of the poorest countries of the world is really not poor in respect of natural endowment of resources. It has very fertile land which grows almost everything with minimum of efforts. It has great hard working and painstaking farmers, happy go merry general masses that believe in plain living and are more than happy if they get two square meals. Bangladesh has great garment girls who with bare minimum wages helping to earn huge foreign exchange in Ready made Garments industries. It has very hard working labor force which is earning huge wages in foreign land and remitting these to Bangladesh. Yet the country remains poor because of rotten and corrupt politics, poor governance and inappropriate policy and vision for exploiting substantial primary energy. Bangladesh has high quality Natural Gas and Coal. But for years we have failed to settle on a proper strategy to explore and exploit both. Consequently the country is in the midst of a very serious energy crisis.


http://www.energybangla.com/article_det.asp?aId=597