Economics

The Phulbari deposit is conducive to a long life, low cost mining operation. The production costs will be in the lowest quartile of industry cost curves for both seaborne traded thermal coal and semi-soft coking coal. Substantial initial investment relating to equipment costs, site preparation, box cut development, and initial resettlement and other community programmes, will take place over a three year period leading up to the commencement of commercial coal production. The ramp up to saleable coal production of 15 million tonnes per annum will take a further five years. The coal will be used in domestic power generation and domestic industries such as clay brick and coal briquette production. Coal surplus to domestic requirements will be sold into the international market. For example, semi-soft coking coal which is used in the steel industry will be exported until a steel industry is developed in Bangladesh.

The combination of high quality coal, a large coal resource, thick seams, highly competitive average stripping ratio, low operating costs, a project life of over 30 years and easy access to markets make Phulbari a world class coal project.