GCM Resources
| Company type | Public (AIM: [1]) |
|---|---|
| Industry | Coal mining |
| Founded | September 2003 |
| Headquarters | London, United Kingdom |
Key people | Steve Bywater, Chief Executive (London) |
| Website | www.asia-energy.com |
Asia Energy plc is a new company,without any history of previous mining experience, quoted in the London Alternative Investment Market, set up to exploit open cast coal mining opportunities in the Phulbari region of Bangladesh. Asia Energy now trades under the name Global Coal Management.
Company overview
Asia Energy PLC was incorporated in London in September 2003 and acquired 100% of Asia Energy Corporation Pty Ltd, which held the licences to explore and mine the Phulbari Coal Project.
Asia Energy Corporation Pty Ltd entered the coal mining scenario in 1998 by buying the mining contract originally awarded to international coal giant BHP on August 20, 1994.[2]
BHP Billiton Mitsubishi Alliance (BMA) is Australia's largest coal producer and a leader in the international coal industry. [3] BHP claims it sold its rights for strip mining at Phulbari because the coal is deeper than 130 meters ( it is at 151 meters depth ).
Asia Energy PLC must pay Deepgreen Minerals Corporation $1 per tonne of ore sold.[4][5]
Deepgreen ceased to be listed when it merged with Cambrian Mining in 2004 [6].
Phulbari shootings
On the 30th August 2006 the Guardian newspaper reported that six protesters had been shot dead, allegedly by paramilitary forces, when a crowd of 30,000 people stormed the local offices of Asia Energy.
On the 31st August 2006 the Scotsman newspaper reported further unrest the day after the shootings when widespread half day strikes were organised. The Bangladesh government has placed a ban on further protests at the mine site. Gary Lye, chief executive of Asia Energy Corporation (Bangladesh) Pty Ltd, is quoted as saying "It is up to the authorities to determine exactly what happened, but it would appear that the unforgivable events and the needless loss of life and suffering that took place yesterday in Phulbari are entirely the fault of the organisers (of the protest)[7].
Asia Energy has since had its right to mine in Bangladesh withdrawn. [8]
Suspension of trading
On news of the withdrawal of mining rights, shares in Asia Energy PLC crashed, falling from 284p to 117.5p in a single day. The company requested trading be suspended, on 31st August 2006, saying "Asia Energy PLC (“the Company”) became aware this morning of press reports quoting a junior minister in Bangladesh stating that the Bangladesh Government is canceling all existing agreements with Asia Energy. The Company had not received any communication from the Government to this effect. In view of this the shares of Asia Energy were suspended from trading on the AIM Market at 08:40 hrs (BST) this morning. "[9]
Return to trading
The company resumed trading on the London AIM on 6th October 2006, saying "The Company has received no notification from the Government of Bangladesh of any changes to the terms of the Company’s contract and the Directors do not believe that there are any grounds for the contract to be terminated."[10] After its first full day back, the shares stood at 95p, compared to 665p on the 11th October 2005.
Name change
After the fatal shooting, on 11 January 2007 Asia Energy changed its name to Global Coal Management PLC at the same time as maintaining that it was 'fully committed to the Phulbari Coal Project in Bangladesh'[11].
Environmental impact
A serious concern of open pit mining is its environmental impacts. The method requires the mine area to be completely dewatered so that the hollow of the mine does not get immersed in water. Large pumps are required to suck out underground water around the mine round-the-clock during the entire lifetime of the project. Asia Energy's solution is to distribute the water pumped out among the farmers, but in Bangladesh, problem of arsenic contamination is severe.
According to a high official in Asia Energy, topsoil will be removed and preserved once the mining operation begins in a particular block. Topsoil will be brought back and spread on the top of the area filled in. But no one can say when the land becomes cultivable again. The other question is: will the company fill the hollow with the same care as it is done in the developed countries?
See also
External links
- Phulbari, Asia Energy and Grassroots Revolt - Philip Gain [12]
- Asia Energy Website[13]
- Mines and Communities[14][15]
- "Asia Energy is a stock market SCAM" [16]
- Cambrian Mining sells shares in Asia Energy PLC.[17]
- The Scotsman article [18]
- Citywire report on the resumption of trading[19].
- Bangladesh Environment Network[20].