Special assistant to the chief adviser, M Tamim, on Thursday said that the government would take ‘steps’ on Asia Energy’s proposal for an open pit coal mine project at Phulbari after finalisation of the coal policy. He said this in a meeting with Asia Energy chief executive officer, Gary Lye and executive director of Asia Energy Bangladesh Private Limited, Nazrul Islam. Gary Lye told New Age that they had a fruitful discussion with Tamim. ‘We look forward to seeing the coal policy finalised and we will continue to work with government of Bangladesh to help progress Bangladesh’s coal sector development and the Phulbari coal project.' When asked about the report of a technical committee that found Asia Energy’s agreement with the government illegal and Phulbari coal field not viable for open pit mining, Tamim said, ‘The government will look into the report, once the Asia Energy issue comes up after finalisation of the coal policy.’Tamim said that at present the government was not considering any company’s project. ‘The decision on any coal mine project will be based on the coal policy,’ he said. Sources in the government, however, told New Age that the interim government was unlikely to take any decision on Asia Energy’s proposal even if the coal policy was approved.
New Age
23/05/08
http://www.newagebd.com/
Monday, May 26, 2008
Saturday, May 17, 2008
Coal can’t be left underground
Prof. Ajoy Ghose is a Mining Industry Consultant and Editor, Journal of Mines, Metal and Fuels, Indian Journal of Power and River Valley Development. This international expert recently came to Bangladesh to carry out a study for UNDP on Sustainable Energy Development of Bangladesh and the Role of Coal as an Alternative Energy Resource. He spoke to PROBE in an exclusive interview about the coal deposits at the Phulbari, the extraction process, prospects and more...
Interviewed by ANWAR PARVEZ HALIM
You have come to carry out a study for UNDP on Bangladesh's energy resources. Can you tell our readers something about this?
I have been asked by UNDP to carry out a study here in Bangladesh. My study is on Sustainable Energy Development of Bangladesh and the Role of Coal as an Alternative Energy Resource. This entails a study on the energy situation of the country, what coal resources it has, how to mine and exploit these resources and so on.
What has your study on the Phulbari coal mine revealed? Could you tell us about the quantity and quality of coal there as well as other related factors?
I would say that the coal deposit at Phulbari is the 'jewel in the crown' as far as Bangladesh's resource inventory is concerned. It has about 570 million tonnes of high volatile bituminous coal of very high quality. It also has some semi-soft cooking coal. It hasn't been possible to accurately evaluate this at present, but we can say with certainty that this is a huge deposit. In fact, Phulbari will easily be able to produce 15 million tonnes of coal every year.
Is there presence of any other valuable mineral in this mine?
I can't really accurately say anything about this. There is silica sand and China clay in the top layer of coal at the Phulbari mine. These are much costlier than coal. Then again there is pure drinking water, most critical resource in today's world.
What would be the most profitable manner for Bangladesh to extract this coal and do you think we have the technical capability and know-how to do so?
Bangladesh has more than enough expertise in geology and mining. But coal extraction calls for massive investment. It will not be possible for you all to make such a huge investment in a project like Phulbari. This will call for foreign investment. It will not be possible without a foreign company.
How profitable will that be?
All developing countries are growing through direct foreign investment. In India we are inviting direct foreign investment. Foreign companies are investing and our economy is benefitting. Bangladesh should do the same.
It is being said that the coal at Phulbari will be extracted through the 'open mine pit' method. The local people are apprehensive of huge environmental damage and are in a movement against this. What would you suggest as being the best method of mining here?
This is a very sensitive matter. The civil society is always looking for an issue to jump at and launch a movement to obstruct such development work. It may be to satisfy their own egos or may be in the interests of the country. There really is no debate here. Technical considerations, geo-mining conditions and economics -- these three factors are taken into consideration to decide whether the open mine pit method or the underground pit method is more profitable. Normally if there is shallow deposit, the open mine pit method is used. For deep deposits, the underground mining method is better.
The problem with the Phulbari is that the upper level of coal has a water-filled sand layer. So that water has to be extracted at first. Mining is not possible with water there. And underground mining would cause flooding. That was how the accident occurred at the Barapukuria mine. Not even 10% of the reserves at Barapukuria will be recovered. This was because of underground mining.
So through my study I feel that underground mining at Phulbari would be very difficult. The open mine method has to be followed. A depth of 330 metres can easily be reached and for the next 30 years a total of 15 million tones of coal can be extracted.
What is your observation about the interest of Indian company Tata in Phulbari?
Tata is certainly a sound company. I do not know exactly what they want to do here. They have coal mines, they have a steel industry. They are searching for coal mines all over the world. They are taking up a coal mine in Indonesia. They want to come to Phulbari too, but I don’t know too much about this.
Coal is gaining importance as an alternative source of energy…
Coal is definitely gaining in importance. There hardly is any alternative to coal. You have so much coal, but if you delay in extracting it simply because of some debate created by the civil society, this will not bode well for the country. It takes at least six years to produce an underground mine whereas it will take three years for an open pit mine. The longer it takes to take a decision, the longer it will take to go into production.
That is the opinion of an expert. What about the commercial aspect. For example, if Asia Energy comes in, how should we negotiate a good bargain?
My study doesn’t have anything to do with Asia Energy. I don’t know anything about that. However, the matter is very simple. The government has to negotiate with them about how much they will get if they come. One has to negotiate skillfully. It is a matter of calculation. One must have a far-reaching vision. If other developing countries can do this, why can’t Bangladesh?
For how long can we use the coal from Phulbari?
If further drilling is carried out in northwest Bangladesh, more deposits will be discovered. Bangladesh then will be able to extract coal for the next 100 years. India extracts 450 million tonnes of coal every year. Annual extraction from Phulbari will be 15 million tonnes. And in these 100 years, technology will go far ahead; perhaps everything will be nuclear by then.
The people living in the mine area are scared and apprehensive. How will they be rehabilitated?
Those who carry out the mining must deal with this extremely sensitively. Proper compensation must be given to those who lose their land. This is a critical issue the world over. In Uday Singur of West Bengal, no one is willing to give up their land. They are fighting over this. But if the displaced persons are given homes, villages and towns, if they are compensated handsomely for their land, then I don’t think there will be any problem.
How about employment for the local people at the mine?
There won’t be too much employment because large open pits call for more mechanized work. I don’t think the Phulbari mine will require more than 1200 to 1400 hundred people, that too at the lower level. There will only be a handful of people at the technical level.
You are carrying out the study for UNDP. Why is UNDP so interested in this?
UNDP is concerned about energy in Bangladesh. This is also a part of the Millennium Development Goal. UNDP wants to know what alternative sources of energy Bangladesh has so that Bangladesh can meet its energy needs in future. The country will break out into violence if there is no energy. We can't survive without energy. Electricity is our right.
You must have discussed with Tata and Asia Energy for the study, yet you seem to have avoided discussing this. Can you tell us where they stand at present?
Tata is developing industries very aggressively. It is buying steel plants abroad. It has bought up the Jaguar automobile company. They are going all around the world, either jointly setting up industries or doing so alone. They are looking for coal mines and other mines the world over.
I have spoken to Asia Energy. I have to draw up a report in 10 to 12 days and so I went to their office to collect some information. I found their project report to be of a high standard. They have used very good consultants. After all, they are going to invest huge amounts, so they need a sustainable plan.
When do you think Asia Energy will be able to start work?
I really don’t know, but they only do so when the government gives its approval. The government has given environmental clearance to Asia Energy. They submitted their project report to the government about two years ago. So it all depends on when the government takes its decision.
http://www.probenewsmagazine.com/index.php?index=2&contentId=3754
Interviewed by ANWAR PARVEZ HALIM
You have come to carry out a study for UNDP on Bangladesh's energy resources. Can you tell our readers something about this?
I have been asked by UNDP to carry out a study here in Bangladesh. My study is on Sustainable Energy Development of Bangladesh and the Role of Coal as an Alternative Energy Resource. This entails a study on the energy situation of the country, what coal resources it has, how to mine and exploit these resources and so on.
What has your study on the Phulbari coal mine revealed? Could you tell us about the quantity and quality of coal there as well as other related factors?
I would say that the coal deposit at Phulbari is the 'jewel in the crown' as far as Bangladesh's resource inventory is concerned. It has about 570 million tonnes of high volatile bituminous coal of very high quality. It also has some semi-soft cooking coal. It hasn't been possible to accurately evaluate this at present, but we can say with certainty that this is a huge deposit. In fact, Phulbari will easily be able to produce 15 million tonnes of coal every year.
Is there presence of any other valuable mineral in this mine?
I can't really accurately say anything about this. There is silica sand and China clay in the top layer of coal at the Phulbari mine. These are much costlier than coal. Then again there is pure drinking water, most critical resource in today's world.
What would be the most profitable manner for Bangladesh to extract this coal and do you think we have the technical capability and know-how to do so?
Bangladesh has more than enough expertise in geology and mining. But coal extraction calls for massive investment. It will not be possible for you all to make such a huge investment in a project like Phulbari. This will call for foreign investment. It will not be possible without a foreign company.
How profitable will that be?
All developing countries are growing through direct foreign investment. In India we are inviting direct foreign investment. Foreign companies are investing and our economy is benefitting. Bangladesh should do the same.
It is being said that the coal at Phulbari will be extracted through the 'open mine pit' method. The local people are apprehensive of huge environmental damage and are in a movement against this. What would you suggest as being the best method of mining here?
This is a very sensitive matter. The civil society is always looking for an issue to jump at and launch a movement to obstruct such development work. It may be to satisfy their own egos or may be in the interests of the country. There really is no debate here. Technical considerations, geo-mining conditions and economics -- these three factors are taken into consideration to decide whether the open mine pit method or the underground pit method is more profitable. Normally if there is shallow deposit, the open mine pit method is used. For deep deposits, the underground mining method is better.
The problem with the Phulbari is that the upper level of coal has a water-filled sand layer. So that water has to be extracted at first. Mining is not possible with water there. And underground mining would cause flooding. That was how the accident occurred at the Barapukuria mine. Not even 10% of the reserves at Barapukuria will be recovered. This was because of underground mining.
So through my study I feel that underground mining at Phulbari would be very difficult. The open mine method has to be followed. A depth of 330 metres can easily be reached and for the next 30 years a total of 15 million tones of coal can be extracted.
What is your observation about the interest of Indian company Tata in Phulbari?
Tata is certainly a sound company. I do not know exactly what they want to do here. They have coal mines, they have a steel industry. They are searching for coal mines all over the world. They are taking up a coal mine in Indonesia. They want to come to Phulbari too, but I don’t know too much about this.
Coal is gaining importance as an alternative source of energy…
Coal is definitely gaining in importance. There hardly is any alternative to coal. You have so much coal, but if you delay in extracting it simply because of some debate created by the civil society, this will not bode well for the country. It takes at least six years to produce an underground mine whereas it will take three years for an open pit mine. The longer it takes to take a decision, the longer it will take to go into production.
That is the opinion of an expert. What about the commercial aspect. For example, if Asia Energy comes in, how should we negotiate a good bargain?
My study doesn’t have anything to do with Asia Energy. I don’t know anything about that. However, the matter is very simple. The government has to negotiate with them about how much they will get if they come. One has to negotiate skillfully. It is a matter of calculation. One must have a far-reaching vision. If other developing countries can do this, why can’t Bangladesh?
For how long can we use the coal from Phulbari?
If further drilling is carried out in northwest Bangladesh, more deposits will be discovered. Bangladesh then will be able to extract coal for the next 100 years. India extracts 450 million tonnes of coal every year. Annual extraction from Phulbari will be 15 million tonnes. And in these 100 years, technology will go far ahead; perhaps everything will be nuclear by then.
The people living in the mine area are scared and apprehensive. How will they be rehabilitated?
Those who carry out the mining must deal with this extremely sensitively. Proper compensation must be given to those who lose their land. This is a critical issue the world over. In Uday Singur of West Bengal, no one is willing to give up their land. They are fighting over this. But if the displaced persons are given homes, villages and towns, if they are compensated handsomely for their land, then I don’t think there will be any problem.
How about employment for the local people at the mine?
There won’t be too much employment because large open pits call for more mechanized work. I don’t think the Phulbari mine will require more than 1200 to 1400 hundred people, that too at the lower level. There will only be a handful of people at the technical level.
You are carrying out the study for UNDP. Why is UNDP so interested in this?
UNDP is concerned about energy in Bangladesh. This is also a part of the Millennium Development Goal. UNDP wants to know what alternative sources of energy Bangladesh has so that Bangladesh can meet its energy needs in future. The country will break out into violence if there is no energy. We can't survive without energy. Electricity is our right.
You must have discussed with Tata and Asia Energy for the study, yet you seem to have avoided discussing this. Can you tell us where they stand at present?
Tata is developing industries very aggressively. It is buying steel plants abroad. It has bought up the Jaguar automobile company. They are going all around the world, either jointly setting up industries or doing so alone. They are looking for coal mines and other mines the world over.
I have spoken to Asia Energy. I have to draw up a report in 10 to 12 days and so I went to their office to collect some information. I found their project report to be of a high standard. They have used very good consultants. After all, they are going to invest huge amounts, so they need a sustainable plan.
When do you think Asia Energy will be able to start work?
I really don’t know, but they only do so when the government gives its approval. The government has given environmental clearance to Asia Energy. They submitted their project report to the government about two years ago. So it all depends on when the government takes its decision.
http://www.probenewsmagazine.com/index.php?index=2&contentId=3754
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