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GCM Resources offers 30% Phulbari coalmine stake

Steel News - Published on Sun, 08 Jul 2012

The London based GCM Resources Plc has offered a 30% stake to the government of Bangladesh in the company, for open-pit commercial exploration of Phulbari coal mine.

Sources at the relevant ministry said that \"Such offers from big enterprises are not uncommon, and relevant authorities are found to accept them if experts find it feasible.”

A senior official at the ministry of power, energy and mineral resources told the FE without giving details that GCM Resources, formerly Asia Energy PLC, initiated recently talks in Bangladesh with a new approach to deal with the government on matters relating to exploration of coal at Phulbari, after a new management took charge of the energy firm.

However, a panel of United Nations special envoys expressed concern early this year that plans for an open-pit coal mine in Phulbari could displace more than 200,000 people. This concern is mostly in line with the assessment by local environment and rights\' groups.

The UN experts said the mine would destroy as much as 12,000 hectares of agricultural land. The mine would extract more than 570 million tonnes of coal during the next 36 years.

But officials at MoPEMR said each and everyone to be affected would be duly compensated for, and rehabilitated under adequate safeguard measures.

The energy authorities in Bangladesh have recently opted for exploration of coal as primary fuel in generation of electricity as the recent oil-fired quick and rental plants have proved themselves to be much costly.

Meanwhile, the Bangladesh Power Development Board (BPDB) has geared up formalities relating to processing of tenders for implementation of a plan to set up 13 coal fired power plants at seven different locations to generate up to 7,800 MW electricity by 2015.

Of the 13 proposed plants, formalities relating to tenders for setting up five plants with an aggregate capacity of 2,500 mw in Dhaka, Chittagong and Barisal are now under completion.

Source - Financial Express


Posted By : admin on Sun, 08 Jul 2012
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