Havingmore operating loss than previous year, GCM desires its continuous efforts for Phulbari Coal Project. The company remains wholly focused on pursuing the necessary approval from the Government for the Project to proceed with the next stage of development. GCM incurred 6 lac 40 thousand pound losses equivalent more than 7 crore taka in only six month ending December 2015. In a release published yesterday in London on company’s interim results GCM Chairman Michael Tang hoped that the Directors are confident that an agreement can be reached which satisfies the objectives of both the Government and the Company. He said, despite the delay in receiving approval from the Government to proceed with Project development, the business, financial, economic and social basis for advancing the Project remains very strong.
In the release chairman said, during the last six months the Government has pursued its goal of rapidly increasing the nation’s current 250MW of coal fired power capacity to 19,000MW over the next 14 years as part of its strategic plan to restructure the country’s power sector. Once in operation, the coal-fired power plants will require the equivalent of some 58 million tons of high calorific coal per annum, substantially increasing the demand for coal in-country. The Government announced plans to source coal from overseas but has yet to secure any at this point in time.
He said, a developed Phulbari Coal Project can greatly assist the Government in its objective of delivering substantial and much needed coal-fired power generation to foster industrial development, create jobs and improve the livelihoods of the people of Bangladesh. Of the five known coal deposits in Bangladesh, the Phulbari coal deposit is the most advanced in preparation for extraction. GCM’s extensive and detailed exploration and evaluation studies have included a Definitive Feasibility Study and Scheme of Development, an Environment and Social Impact Assessment approved by the Department for Environment, and a proposal for staged implementation of large scale mine-mouth coal fired power generation which would deliver the cheapest coal fired power in the country. A Phulbari mine will supply up to 15 million tonnes per annum of high quality thermal coal, sufficient to support generating capacity of 4,000MW.
It has been said in the release, recognising the importance of maintaining a social licence, the Company has continued with its local engagement activities in the Dinajpur District to strengthen and develop the dialogue with local communities. During the period the Company reported having met with around 2,500 people across the Project area since it commenced its re-engagement strategy in late 2012. The GCM teams working in the field listen to the views of the community and provide assurance of the Company’s continued intentions in relation to the mine and related community investment.
GCM’S interim results show a lossof 6lac 40 thousand pound for six month from July 2015 to December 2015. Loss in the same period last year was 4 lac 61 thousand. GCM mentioned, due to non-cash expenditure predominantly relating to share based payments increases the loss. #