Phulbari Coal Project
Asia Energy Corporation (Bangladesh) Pty Ltd (Asia Energy), the subsidiary of UK-based GCM Resources plc, is planning to develop and operate a world class open pit coal mine in its Phulbari Coal Project (the `Project’) in the district of Dinajpur, Northwest of Bangladesh.
Asia Energy intends to develop and operate the mine adhering highest national and international environmental and social standards. In this regard, the Project’s Feasibility Study and Scheme of Development was submitted to the Government on 2 October 2005 for approval. At the same time Asia Energy delivered to the Government a proposal for developing a coal fired power station with up to 1,000 MW capacity at the mine site. The mine, in its full capacity, will produce annually 15.2 million tonnes of high-quality bituminous coal, capable of supporting over 60% of country’s thermal coal demand. Phulbari high-quality, high-energy coal can support generation of up to 6,600 MW of baseload power. The Department of Environment approved the Project’s Environmental Impact Assessment and granted environmental clearance.
Asia Energy has been working openly under national and international scrutiny to show respect of its obligation to the Government and the people of Bangladesh. The Company has been working with all relevant stakeholders at local, regional and national level and will also continue the same in future. Asia Energy is committed to environmental, social justice, sustainable development and complete disclosure of various aspects of the Project.
Project at a glance
| Name of the project | Phulbari Coal Project. |
|---|---|
| Project Location | The Project is located in north-west Bangladesh, approximately 350 km of the Capital City Dhaka in Phulbari, Nawabganj, Birampur and Parbatipur Upazila of Dinajpur District |
| Project Proponent | The Project is located in north-west Bangladesh, approximately 350 km of the Capital City Dhaka in Phulbari, Nawabganj, Birampur and Parbatipur Upazila of Dinajpur District |
| Contract | Asia Energy has Contract (No. 11/C-94) with the GoB for exploration and mining of coal in Northern Bangladesh. The Contract was originally signed with BHP Minerals in 1994 and later with the approval of the government assigned to Asia Energy in 1998 |
| Lease/Licenses | Asia Energy received Mining Lease for the core coal resource area (Area B) and Exploration Licenses for the adjoining other areas (Area G and H – presently under application for conversion into Mining Leases) |
| Method of mining | Open Pit. |
| Coal Type and Quality | High-quality bituminous coal (high calorific value, low ash, low sulfur), comparable to any internationally traded high-quality thermal coal. Phulbari coal will yield three products: High-Quality Thermal Coal (60%), Domestic Thermal Coal (20%) and Semi-Soft Coking Coal (20%) |
| Total Coal Resource | 572 million tonnes (defined in line with internationally recognized procedure – JORC compliant) |
| Annual Production Target | 15.2 million tonnes |
| Use of Coal | Thermal coal for power generation. High value semi-soft coking coal is used in steel industry. Has also use in brick kilns, and as briquette in domestic and small industries |
| Co-Products | High grade silica sand, kaolin clay, and aggregates |
| Project Life | 35+ years |
| Total Investment | No Government funding. Total lifecycle expenditure approximately US$ 16 billion over the mine life. Approximately US$ 2.5 billion invested in mine development and operations during the first three years. |
| Mine Development and First Coal | Physical mine development work will commence immediately upon approval of the Scheme of Development (SoD). First coal is expected to be available within 15-18 months of physical construction of the mine |
| Total Land for the Mine | Total 5,192 hectares over the mine life. The mine will use land in phases and no more than 2,000 hectares will be in use at any point of mine development. |
| Phulbari Township | The Municipality will maintain its status with a redefined boundary. A small portion of existing eastern Phulbari Town will fall in the mine footprint area and a new model township will be developed on the west of the Little Jamuna River with improved services and facilities. This will be first planned mine city in Bangladesh. |
| Resettlement of People | The Project will require resettlement and rehabilitation of about 40,000 affected people in phases over a period of 15-20 years. The affected people, who so require or wish, will be resettled in the new township or in well-developed new villages where all civic amenities including education, health, water supply and sanitation facilities will be made available. |
| Compensation | All project affected people will be fully and fairly compensated for the loss of land and assets at full replacement costs. Affected people will be provided with skill development training, employment and support for alternative livelihood opportunities including agriculture and businesses. A Social Investment Fund will be established to promote and support livelihood diversification and improvement initiatives. No one will be worse off than their present position; rather people will enjoy better life and livelihoods. |
| Land Rehabilitation | No permanent loss of land for open pit mining. The land after coal extraction will be progressively backfilled and rehabilitated back to its productive state. The final mine void will be transformed into a freshwater lake to be used for various community purposes including recreation and aquaculture. |
| Water Management | A detailed water management plan has been developed, with particular importance on managing the impacts of aquifer dewatering. As part of the Plan, water will be injected into the aquifer to restrict water level drawdown to the near mining area and provided to affected households and agricultural lands. New and existing Phulbari Township and resettlement villages will be brought under reticulated water supply system. Water will also be discharged to nearby waterbodies to maintain downstream flow and conserve ecosystem and natural habitats. There will be no shortage of water in the Project area; rather people will have access to round the year safe water. |
| Environmental Management | The Project will do responsible mining. Various proven management measures will be implemented to manage environmental impacts. All environmental parameters will be rigorously monitored, and a detailed environmental management plan will be implemented to ensure all project activities remain environmentally acceptable throughout the life of the mine. To this end all management action plans have been prepared with mechanism in place for independent monitoring. |
| National Benefits | No Government funding. In addition of net government earnings, other benefits include a new source of readily available long-term energy for the country; power generation at affordable cost; development of new industries, new transport infrastructure, potential co-product-based industries; employment opportunities; regional development and poverty alleviation. All these will have direct contribution to GDP growth |
| Local and Regional Benefits | New coal industry will be developed in northern Bangladesh. Thousands of jobs and business opportunities will be created in mining and associated industries, co-product based industries and service sector. New Town and village resettlement sites will be developed with all basic amenities. There will be significant development of communication infrastructure. Agricultural production will be increased with improved agri-based livelihoods |
| Present Status of the Project | Scheme of Mine Development (SoD) has been submitted to the Government after completion of a comprehensive two-year long Feasibility Study to national and international standards. Project’s Environmental Clearance has been granted. Asia Energy expects that approval of mine development scheme will be issued to pave the way for early mine development. |