Take immediate step to extract coal

Shamsul Haque
Eminent energy experts and prominent citizens have urged upon the government to take immediate steps for extraction of coal as it has already been proved across the world that coal is an alternate fuel. Eminent experts on energy and mining, geologists, environmentalists and prominent citizens spoke expressed their views at a seminar titled 'Geo-resources extraction' arranged on June 18 at daily Amar Desh office on June 18 in the city. The speakers stressed the optimum use of natural gas so that the country can move towards the development very quickly. The imperialists are engaged in hatching conspiracy against extraction of coal so that the country leads itself towards a poor country. Keeping the point of future in mind, government should harness the resources like coal on preferential basis and with high importance. 'Putting aside the debate on extraction process, we should explore coal without making any late,' they added.Amar Desh Editor Ataus Samad presided over the seminar while among the eminent speakers two Bangladeshi mining geologists and environmentalists, now residing in Australia, Dr. Rais Uddin Ahmed and Dr. Narayan Chandra Das spoke at the seminar as key-speakers. Former Adviser on Energy Mahmudur Rahman, former Secretary Engineer Kamrul Islam Siddiquee, Petrobangla's former director Mainul Ahsan, Director of Geo Survey of Bangladesh Mohammad Nehal Uddin, Bangladesh Atomic Energy Commission's Chief Geologist Dr Yasun Akon, Birshesta Abdur Rauf, Greater Rangpur-Diajpur Industry Commerce Development Forum President Nazrul Islam, Dinajpur Khet Majur Samity President Saiful Islam, BDR college former Principal Mia Mohammad Maniruzzaman, journalist Sanjib Chowdhury spoke on the occasion.Speakers have urged the government not to make any delay as 90pc of coal can be extracted by open-bit process arguing that this process is more beneficial to the economy of the country. The reserve of gas will be finished soon. To make sure that Bangladesh as a solvent country based on coal along with the other natural resources, the government should come forward to take massive steps ranging over all the potentials.Former Adviser on Energy Mahmudur Rahman added that coal is the source of 60pc of gas all over the world. So, using gas is more important in industrial belt than that of using it in household affairs.' Every mining is loss to agriculture and environment, so there is no use of putting arguments against the mining', he added. He furthermore said that anti- Bangladesh campaign across the globe should be stopped at any cost. If nothing done for the welfare of Bangladesh so far, how it is possible to announce Tk.1 lakh crore for budget this year. If we are not ready to stand on our own feet, we can't be able to make our country sovereign. The dependence on foreign aid was 42pc, which now been increased to 64pc.Dr.Rais Uddin in his speech said that the coal of this country is the best in quality. In Australia, 80pc industries have been made by the aid of coal. Coal proved itself 'Black-gold' to the people of Australia. In USA, 50pc industrial development has been accomplished by coal.Dr. Narayan Chandra Das in his speech said that water management is very essential in the case of coalmining. But in the case of Bangladesh, keeping the quality of water, air and forest is not a key matter at all. Water reservation facility can be created easily Engineer Kamrul Islam Siddiquee said that we have been suffering from indecision that causes a great loss to the nation. Once it was announced that 1 lakh ton of coal would be extracted from the Barapukuria coalmine, now the extraction is at 30 to 40 thousand ton only. The process of underground mining is full of problems and hindrances. So the open-pit option is more pragmatic.Other speakers added that there is no need to indulge in politics in the case of coal mining. The president of the seminar, Amar Desh Editor Ataus Samad in his concluding speech said the uniformity in thinking is very essential to explore coal along with the other natural resources.

Weekly Economic Times
22/06/08
Link:http://www.weeklyeconomictimes.com/news-details.php?recordID=1132

Open pit mining method is most suitable for Bangladesh: Dr Raisuddin Ahmad

Abir Mahmud

Geologist of LionOre Australia Pty Ltd, one of the largest coalmines in Australia, Dr Raisuddin Ahmad has categorically termed Bangladesh's coal sector a very promising one to accelerate the country's national economy."Coal can be an useful and effective alternative source of energy to ensure the country's future energy security and help developing the national economy," Dr Raisuddin also a former fellow of Australia's number one ranking Australia National University said.But to utilize the country's coal reserve potentials a bold decision and its immediate implementation is necessary, Dr Raisuddin Ahmed told the Weekly Economic Times.Following are the excerpts of his interview given to the Weekly Economic Times when he visited Dhaka recently:
ET: Bangladesh has huge coal reserves. But the country is yet to tap its potentials. According to you what are the bottlenecks the country has and how it can be overcome?

RA: Bangladesh is now facing multifaceted problems like lack of necessary and realistic vision, policy-related complexities and weakness in taking appropriate decision.Overcoming these bottlenecks is intricate but not impossible. Firstly the government's vision needs to be changed. The government should be open, free from political confrontation and come out of conservative approach. Appropriate decision should be taken without fear and adequate measures should be taken for its quick implementation.The government must have to maintain strong monitoring and immediate rectification is a must if a wrong is committed.

ET: How you see the prospect of Bangladesh's coal sector and it can be utilised?

RA: Coal sector in Bangladesh is very promising. The government must not do any further delay in taking decision on coal sector development.Bangladesh is already lagging behind in utilizing coal resources. The global practice is that around 70-80 per cent of coal is used in coal-fired power plant in the coal-rich countries.Despite having huge potentials Bangladesh has only one coal-fired power plant at Barapkuria, which is also struggling in coal production due to application of wrong mining method.

ET: By the way as you mentioned about Barapukuria coal mine, what should be the appropriate mining method in Barapukuria?

RA: Considering the geological structure and soil condition of Barapkuria coalmine I must say open pit mining method is most suitable for its mining

ET: And for Phulbari coalmine which mining method is appropriate?

RA: As the geological structure and soil condition of Phulbari is similar to that of Barapukuria, the open-pit mining method would be a suitable option for getting the maximum benefit out of it.But the authorities concerned must have to be careful about pollution, degradation of environment to maintain a natural equilibrium.The local people who will have to sacrifice their land for open-pit mining method must have to be properly compensated. Their lands must have to be returned to them or their successors after filling of lands.The mining should be done in phase by phase to ensure that huge numbers of local people need not to be rehabilitated at once.The local people must be given proper employment to maintain their livelihood with better status than before.

ET: Bangladesh has several coalmines. According to you how Bangladesh can go ahead to develop those?

RA: As currently Bangladesh has no expertise in coalmining initially one or two coalmines should be developed with assistance from foreign companies.Foreign companies can develop Bangladesh coalmines under contracts.The remaining coalmines should be kept for local companies to develop. Manpower should be developed through necessary training.Arrangements should also be there so that local expertise develop seeing and experiencing the works of foreign companies.

Weekly Economic Times

22/06/08

Link: http://www.weeklyeconomictimes.com/news-details.php?recordID=1172

Energy Ministry finalises coal policy, Inter-ministerial meeting on June 26

SHAHNAJ BEGUM

The energy ministry has finalised the coal policy recommending formation of "Khoni-Bangla", a management body to oversee the country's mineral resources including coal, hardrock, lime stone, silica sand and others, an authoritative source told The Independent yesterday.The energy ministry last week finalised the policy without making major changes in the draft policy prepared by country's renowned experts and sent copies to the ministries of forest and environment, law, land, finance, commerce, power, and NBR with a request letter to give their opinion and join the first interministerial meeting on June 26 following which it will be sent to chief adviser Dr Fakhruddin Ahmed for approval."The committee did not say anything about the coal extraction method. The issue should be coal field-specific. We simply brushed and trimmed it without touching the basic content of the draft except the land reclamation issue", a top official of the energy ministry told The Independent. It may be mentioned that the committee suggested to the government to examine the pros and corns of open-pit mining and that the government should go for open pit on a limited scale. The policy has not mentioned anything on it.It is learnt that the energy ministry in the policy suggested keeping the land reclamation issue under government's jurisdiction. However, the committee suggested to give the land to its owner. "20-30 years is a long time and the ownership may change in the meantime. Our observation is it would be a difficult task for government to identify the real owner. So we said that land would be kept under government jurisdiction and it would take decision," a top official of the energy ministry remarked. A 29-member standing committee 'titled: development committee', comprising government officials, experts, business leaders and members of civil society would act as the highest authority to give policy directives to 'Khoni-Bangla' from time to time. "Khoni Bangla", would work under the energy ministry and the Bureau of Mineral Development (BMD). It would be the authority to oversee coal exploration, marketing and investment through selecting method (open pit or underground mining) giving approval to Go-Private, Go-foreign and private -foreign ventures. The country has a known reserve of 2.7 billion metric tons of coal but there is yet no specific policy on coal development, although there are some rules and regulations to lease out coal fields to foreign companies.The main goal of the new policy is to ensure energy security by developing coal-fired power stations in the country. Though the country has five coal fields, four are commercially viable. The government in 2007 formed the eight-member committee comprising Abdul Matin Patwary, Vice Chancellor of Asia Pacific University (president), Prof. Nazrul Islam of University Grants Commission, Prof. Badrul Imam, Nazrul Islam of IIFC, Prof. Mostafizur Rahman, Muqbul-e-Elahi, Major General Ismail Farooq Chowdhury and Ataus Samad. The committee at its first meeting suggested inclusion of Prof Nurul Islam of BUET and M.A. Zaman (re-settlement expert) in the committee and invited other experts from time to time to know their views. The draft coal policy was prepared by the IIFC last year, which was amended six times. The policy suggested 6 per cent royalty for open-pit and 5 per cent for underground mining, but it suggested that fixing of royalty would be finalised by the government. Bangladesh Arbitration Act-2001 would be followed if any disputes arose.To discourage export, the policy said whatever method was adopted to develop a coal field it would produce only that much which would meet the local demand. It said coal is needed to ensure the country's energy security first. It may be mentioned that to ensure energy security for the next 50 years (at a rate of 8 per cent GDP growth), it needs to produce 41,599 MW of electricity by 2025. Aiming to slap conditions on coal export, the energy ministry upheld the committee's observation that the entire amount of the country's coal reserve is needed to produce electricity in future, as gas would be exhausted by 2015 if new discovery is not made. However, it allowed a limited export of coal after ensuring the country's 50 years' energy security and said only that portion of coal could be exported which has no market here, and in case of 'cooking' coal, it could be exported but after making it 'coke' (a raw material use in steel making).

The Independent

20/06/08

Link:http://www.theindependent-bd.com/details.php?nid=86951

If not coal, what?

FORREST COOKSON

The widespread attack by foreign NGOs against use of coal and the Phulbari Coal Project in particular is highly irresponsible. The basis of the attacks are five assertions repeated over and over:1. Open cast coal mines are bad.2. Coal mines cause a lot of dislocation of people.3. Mines will destroy valuable farm land that should be kept in agriculture.4. Private foreign investors exploit Bangladesh so should not be allowed.5. ADB should not participate in coal projects.These websites call for people to tell the ADB not to support the Project. Note that the Bangladesh government has not yet made a decision on the use of coal but these NGOs are trying to pressure ADB to reject participation, before the government’s views are known! This attack partially worked as ADB has now put aside its monitoring of the Phulbari Coal Project until the government decides what it wants! The ADB has not dropped its potential participation but is, properly waiting the government’s decision. In the meantime the NGOs are trying to build up international groups to oppose support by ADB for coal development in Bangladesh. The Bangladesh government should certainly listen to interested parties, but as a sovereign nation the leaders must decide what is best for Bangladesh. Neither the donors nor the NGOs have a right to try to force the government to act as they wish.The difficulty with these attacks by the NGOs is that they completely ignore the most important question: “How will Bangladesh fuel its electricity needs?” The answers to this question floating around are:1. Use natural gas instead of coal – but, of course, there is an acute shortage of gas that will take at least ten years to solve. The pressures by NGOs to stop mining of coal have already caused a two year delay in achieving any significant step towards developing Bangladesh’s coal sector. While there is potential for more gas in Bangladesh it has not yet been discovered. Until a hole is drilled and commercial gas quantity proven, it is prudent to diversify the sources of fuel for power plants. Furthermore, the best way to run the power system is to put the base load on to coal fired plants and handle the peaking demands using gas.2. Let Bangladeshis develop the coal resources without foreign participation: In Bangladesh there is very limited availability of experienced technical staff in designing and operating large coal mines (open cast or underground). The capital requirements for such mines are immense. Proponents of this idea know very well this is not feasible but it appeals to Bangalee nationalism. Of course in time Bangladeshi citizens will play a greater and greater role in the provision of skilled staff and capital for developing the coal sector but it will take a long time. The belief that there is staff and capital sitting around ready to implement coal projects is simply wrong. This path will slowdown the development of coal fired plants by at least a decade. If enforced for both coal and gas it is two decades!3. Develop nuclear power: This can only be achieved with use of foreign capital and technicians. Furthermore to build up to 8000 MWs will take 10 nuclear power plants. This cannot be done in 15 years. Using nuclear power will result in very intrusive safeguards and provide years of argument over the environmental impact. It is important to go forward with nuclear power but it cannot solve the problems of the next 10 to 15 years.4. Renewable energy: It is a particularly silly idea to think all of Bangladesh’s additional energy requirements can be met by renewable sources. Renewable energy is very expensive and its use in Bangladesh in solar form is heavily subsidised. Wind power potential is limited and wind power remains much more expensive than hydrocarbon based electricity. Just as for nuclear power renewable energy use should be encouraged but only hydrocarbon based power will provide needed electricity for the next 10 to 15 years. All these approaches proposed by foreign NGOs are simply wrong for Bangladesh! It is outrageous that these organisations should be undermining Bangladesh’s development efforts. Their position is “It is better to be poor than to develop the coal resources.”The position is so simple: Economic growth needs cheap electrical energy available only from use of coal and gas. Renewable energy is too expensive for mass use. The opposition by JACSES (Japan) or AID Watch (Australia) to development of energy in Bangladesh is a deeply immoral act. People sitting in developed countries using electricity at a high rate generated by coal, gas and nuclear plants are preaching to Bangladesh not to produce electricity with the coal and gas Bangladesh has! Let these people come and live in Bangladesh for five years without electricity at the income level of the median rural household. Perhaps they would then understand the urgency of expanding the power sector and accelerating economic growth. Expanding electricity availability for rural households is one of the most important tasks to be achieved; it is unfortunate that these foreign NGOs, judged by their actions, are working to keep this from happening.No doubt greater use of gas and coal will have some negative input on the environment. Should Bangladesh sacrifice its economic growth to reduce this adverse impact? Bangladesh does far less damage to the environment than either Australia or Japan. Let these NGOs clean up their own houses.Turning now to the objections.Open cast coal mines are bad: There is no alternative to the open cast mine. The technical problems [water regime, acceptable environment recovery] are manageable according to the world class mine design engineers engaged by Asia Energy. The government must insure that the vendor takes care of the environment. Rather than attacking open cast mines one should ask “How can we achieve this while protecting the affected population and the environment?” Open cast mines are necessary to build up Bangladesh power sector; otherwise not enough coal is available from underground mines. The target is 12 million mt per annum for power; this can never be achieved with underground mines. In any event expert opinion is that the coal deposits are only marginally suitable for underground mining.Coal mines cause a lot of dislocated of people: The critics miss the point, Asia Energy has to agree to resettle all affected persons in such a way that people are better off financially than before the resettlement. It does not matter who is right about the number. The government must make agreements with the coal companies to insure this happens. Difficulties are not a reason not to do the project, but rather a reason to be particularly careful and to work to overcome difficulties. The government must insure that resettlement is done according to its rules protecting the financial position of these affected. The NGOs efforts to drive out ADB will adversely effect the poor in the project area. The hypocrisy is breath taking. The coal projects will use up valuable farm land that should be kept in agriculture: This is true but the project will make an enormous contribution to the economy. Land is lost to agriculture continuously and if Bangladesh is ever to become a middle income country it has to maximise return to the land through industrial development. The future of Bangladesh does not rest with rice farming but through industrial development.Private foreign investors exploit Bangladesh, so should not be allowed: Many believe this and hence argue such investment should be banned. But others say: Environmental NGOs are bad and should be banned. This is the level of this argument! Noise not fact. Self righteous behaviour is best replaced with some humility and doubt. Of course foreign investors are trying to make money! The question is the word “exploit.” The earnings are large became the investments are large. Private foreign investment in the Bangladesh energy sector has been beneficial for both the nation and the investor. It has provided gas at less than $1 per thousand cubic feet and electricity at less than 3 ¢ US per kwh. For all the accusations and claims the Bangladesh government through good management and encouraging competition did very well using foreign investors in gas and electricity.ADB should not participate in coal projects: I do not know if the government will approve the Phulbari Coal Project. But if the government does Asia Energy faces no difficulty in financing the project from private sources or sovereign wealth funds. The government should welcome ADB participation to strengthen achievement of high standards for resettlement and environmental management.Anyone genuinely interested in the Bangladesh peoples’ welfare wants the power and influence of the ADB on the side of the people. Indeed the implementation of large coal projects in Dinajpur will accelerate the growth of this part of Bangladesh raising incomes, providing employment and attracting people from surrounding areas. Asia Energy does not need ADB for financing the Project; it is the Bangladesh government that can use ADB to strengthen its hand! Open debate about the pros and cons of energy projects and strategy is of great benefit to Bangladesh. But for NGOs to interfere in the relationship of ADB and the government seems questionable behaviour. This argument needs to be based on truth and analysis not misrepresentations and unsubstantiated claims.

The Independent

15.06.08

http://theindependent-bd.com/archive.details.php?nd=2008-06-15&nid=86328