Asia Energy PLC
Encyclopedia
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.
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.http://www.bangladeshnews.com.bd/2006/08/28/agreement-with-asia-energy-option-open-for-govt-to-make-pro-people-deal/
BHP Billiton Mitsubishi Alliance (BMA) is Australia's largest coal producer and a leader in the international coal industry. http://www.bmacoal.com/opencms/export/sites/bccom/index.html 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 must pay Deepgreen Minerals Corporation $1 per tonne of ore sold.http://www.asia-energy.com/presentations/Asia_Energy_Prospectus.pdf#search=%22BHP%20contract%20with%20%22asia%20Energy%20PLC%22%22http://www.minesite.com/CompanyDynamic.php?ID=112
Deepgreen ceased to be listed when it merged with Cambrian Mining in 2004 http://www.delisted.com.au/CompanyDisplay.aspx?id=2587.
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)http://business.scotsman.com/latest.cfm?id=1262102006.
Asia Energy has since had its right to mine in Bangladesh withdrawn. http://www.bangladeshnews.com.bd/2006/08/31/govt-agrees-to-say-no-to-asia-energy/
The AIM-listed company has subsequently changed its name to GCM Resources plc, and has invested in coal and uranium projects in other countries. The Asia Energy name is still used in Bangladesh
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?
Alternative Investment Market
AIM is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the main market....
, set up to exploit open cast
Open-pit mining
Open-pit mining or opencast mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow....
coal mining
Coal mining
The goal of coal mining is to obtain coal from the ground. Coal is valued for its energy content, and since the 1880s has been widely used to generate electricity. Steel and cement industries use coal as a fuel for extraction of iron from iron ore and for cement production. In the United States,...
opportunities in the Phulbari region of Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
. Asia Energy now trades under the name Global Coal Management.
Company overview
Asia Energy 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.http://www.bangladeshnews.com.bd/2006/08/28/agreement-with-asia-energy-option-open-for-govt-to-make-pro-people-deal/
BHP Billiton Mitsubishi Alliance (BMA) is Australia's largest coal producer and a leader in the international coal industry. http://www.bmacoal.com/opencms/export/sites/bccom/index.html 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 must pay Deepgreen Minerals Corporation $1 per tonne of ore sold.http://www.asia-energy.com/presentations/Asia_Energy_Prospectus.pdf#search=%22BHP%20contract%20with%20%22asia%20Energy%20PLC%22%22http://www.minesite.com/CompanyDynamic.php?ID=112
Deepgreen ceased to be listed when it merged with Cambrian Mining in 2004 http://www.delisted.com.au/CompanyDisplay.aspx?id=2587.
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)http://business.scotsman.com/latest.cfm?id=1262102006.
Asia Energy has since had its right to mine in Bangladesh withdrawn. http://www.bangladeshnews.com.bd/2006/08/31/govt-agrees-to-say-no-to-asia-energy/
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 31 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. "http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1289924&source=RNSReturn to trading
The company resumed trading on the London AIM on 6 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."http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1312774&source=RNS After its first full day back, the shares stood at 95p, compared to 665p on the 11th October 2005.Name change
After the fatal shootings, 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'http://www.asia-energy.com/announcements/2007Q1/070111.php.The AIM-listed company has subsequently changed its name to GCM Resources plc, and has invested in coal and uranium projects in other countries. The Asia Energy name is still used in Bangladesh
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?
External links
- World Development Movement - report and video http://www.wdm.org.uk/campaigns/others/bangladeshmine/indepth.htm
- Phulbari, Asia Energy and Grassroots Revolt - Philip Gain http://www.meghbarta.org/nws/nw_main_p01b.php?issueId=6§ionId=20&articleId=471
- Asia Energy Website http://www.asia-energy.com/
- Mines and Communities http://www.minesandcommunities.org/Action/press730.htmhttp://www.minesandcommunities.org/Action/press984.htm
- "Asia Energy is a stock market SCAM" http://salamdhaka.blogspot.com/2006/08/asia-energy-is-stock-market-scam.html
- Cambrian Mining sells shares in Asia Energy PLC.http://www.cambrianmining.com/mainNews.aspx?id=17
- The Scotsman article http://business.scotsman.com/latest.cfm?id=1262102006
- Citywire report on the resumption of trading.
- Bangladesh Environment Network.
- http://www.gcmplc.com/