Asia Energy Corporation (Bangladesh) Pty Ltd, the subsidiary of UK-based Asia Energy PLC, is due to present the government with the feasibility study and scheme of development for its US$2 billion Phulbari coalmine project today, company sources said, reports BDNEWS.
Gary Lye, Asia Energy's CEO Bangladesh, will hand over the joint feasibility study and scheme of development report to the director of the Bureau of Mineral Development of the Energy and Mineral Resources Division.
The report shows that over the life of the mine Asia Energy will invest US$2 billion in capital costs and spend an additional US$10 billion in operating costs. Based on an average price of US$50 per tonne of coal, the government will earn an estimated US$7 billion in taxes, royalties, duties, and rail and port charges, they added.
The sources said Asia Energy had taken almost two years and spent some $18 million on the feasibility study and the exploration of the basin where there is a resource of 572 million tonnes.
The Phulbari mine will produce 15 million tonnes per annum of mostly export quality metallurgical and thermal coal for 30 plus years, at an average stripping ratio of 7.5, the sources added.
They said the Department of Environment (DoE) approved the environmental impact assessment (EIA) for the open pit mine and granted it environmental clearance on September 11.
According to the sources, a total of 67 separate reports were incorporated into the feasibility study and scheme of development. The report contains detail aspect of the future mine, from mine design and water management to coal handling and processing and coal transport.
The 600-page report also contains separate sections on environmental management, resettlement and the community.
The sources said approximately 40,000 people will be relocated during the life of the mine, and Asia Energy would ensure that they would be fully and fairly compensated for all loss of land, homes and business.