Location

The Phulbari Coal and Power Project is located in the Dinajpur District of Northwest Bangladesh, approximately 350 kilometres from the capital, Dhaka, and 10 kilometres from the Indian border. The region is some 30 metres above sea level, relatively flat and comprised of an alluvial plain with slightly raised terraces formed in pre-historic time by the drainage of the sub-Himalayan river systems (the Ganges/Padma and Jamuna rivers). It is predominantly under rice cultivation with occasional forest remnants.

The climate is subtropical with the early summer months (March to early June) normally hot (maximum temperature of up to 40 degrees Celsius), dry and windy with occasional storms occurring in the pre-monsoon period.  Most rainfall occurs in the monsoon period from June to late October and annual rainfall averages 2,000 millimetres. The project area is not subject to flooding and cyclones that affect southern coastal areas. Winter temperature can fall to around 8 degrees Celsius.

The region's economy is mainly agricultural, with reasonable infrastructure but little industry and few services. The region has road, rail and air connections. To the immediate north of the Project is the Barapukuria coal field, an underground mining operation with a planned production of 1 million tonnes per annum. There is an associated mine mouth power station with a capacity of 525MW. This project was developed and is operated by a Chinese contractor for the Government.

The Phulbari Coal and Power Project’s mine footprint covers an area of 5,193 hectares. Some  80% of the area is open fields under agriculture. Development of the mine will bring significant benefits, at the national, regional and local community levels.

Ownership

BHP Minerals International Exploration Inc entered into a Contract with the Government of Bangladesh in August 1994, giving it the right to explore and mine coal in Northern Bangladesh. In February 1998 the Contract was assigned to GCM’s wholly owned subsidiary, Asia Energy Corporation (Bangladesh) Pty Limited, with the endorsement of the Government. GCM has fulfilled all its obligations under this legally binding Contract and holds a mining lease and exploration licences in the Phulbari area covering the prospective mine site. Under the terms and conditions of the Contract, a mining lease has a 30 year term (from 2004) and may be renewed for further periods of 10 years (GCM’s option).