GCM Resources plc has identified a world class coal resource of 572 million tonnes (JORC 2004 compliant) near the town of Phulbari in North West Bangladesh. The resource is made up of 60% high quality thermal coal, with low ash metallurgical coal, also known as semi-soft coking coal, making up about 20%. The remaining thermal coal is also good quality and will have applications in industry and power generation. The coal seam thickness varies between 20 and 65 metres at depths between 165 and 270 metres and 90% of the open cut mining reserve is contained in two thick coal seams separated by a stone band that is typically 1-2 metres thick. The average strip ratio of 7.5 bcm per recoverable coal tonne is highly competitive. The drilling and gravity surveys suggest the basin remains open and extends further southward. Additional drilling will confirm the southern extent of the coal basin.

The coal will be extracted by the open cut mining method using trucks and hydraulic excavators as this is the safest and most efficient approach for the thick Phulbari coal seams and general geological conditions. Open cut mining is an established mining method and will enable maximum extraction of the coal seams along with progressive land rehabilitation and restoration of agricultural activities. In addition to coal, a variety of valuable industrial mineral co-products will be recovered from the overburden which is removed to expose the coal prior to excavation.

The coal will be used in domestic power generation (mine mouth and elsewhere) and in domestic industries such as clay brick and coal briquette production. Coal for the domestic market can also be transported from Phulbari by rail.

Resource Statement

Coal Quality – High Quality Thermal Coal

Coal Quality – Low Ash Metallurgical Coal