Energy Bangla - Energy Bangla Exclusive: Hasina Needs Convincing Information on Coal Mining

Issues and options concerning coal mining in Bangladesh was presented to Prime Minister Sheikh Hasina by Petrobangla and EMRD on Wednesday (September 16, 2009). The hour long discussion was also attended by the following government policy makers .

Finance Minister AMA Muhit, Energy Adviser Towfiq Elahi Chowdhury, Finance Adviser Dr Moshiur Rahman, Land Minister Mustafizur Rahman, State Minister for Energy Brig Enamul Huq, Parliamentary Standing Committee on Energy Ministry Chairman Subid Ali Bhuiyan, Energy Secretary Mohammad Mohsin, Power Secretary Abul Kalam Azad.

The meeting was due to witness a comprehensive presentation on overall situation of energy sector. Due to other commitments PM could not commit enough time for the meeting. Before PM arrived the Finance Minister and the Finance Adviser initiated discussion on coal mining strategy.

It was not Petrobangla Chairman or Director (Operation & Mines –Minerals) it was Murtoza Faruq Chishti, General Manager (Planning and Monitoring) Petrobangla who made the all important presentation on coal. His presentation summarized recommendations of the June 09 brainstorming with Non resident Bangladeshi Professionals and Academicians on draft coal policy. A brief on Phulbari coal mining by Asia Energy was also presented. It was told that Phulbari Coal Mine is the only mine which can be developed now. Asia Energy using reputed International Consultants carries out extensive studies of Phulbari coal resources and submitted a comprehensive Scheme for Development to Government for it to review and approve in December 2004. Bangladesh Government was contractually obligated to approve it by Early 2005. With proper justifications and supported documents Asia Energy proposed for an open-cut mining. However, the government did not take on it in 4 years. . PB presenter proposed that the government should take decision as soon as possible as coal is urgently required to fuel power generation to confront present and emerging power crisis. But during or after presentation the participants did not get make any comment on Asia Energy’s Phulbari projects.

However, Honorable Member of the Parliament from Phulbari area and State Minister for Land Mr Mostafizur Rahman Fizar commented: “I know local sentiment. We are doing underground mining in Barapukuria. Mine subsidence has been initiated and people are already suffering there. In Phulbari area, would be affected people will not oppose mining if they get proper compensation and they are rehabilitated properly. Whoever does it, Government should convince the people about the ultimate benefit of the people of the region. I witnessed open cut mining in Germany. I have also witnessed rehabilitation, resettlement, land reclamation, land refilling, water and environmental management there. If everything is accomplished to that standard, I do not foresee any major in our case as well.”

Finance Minister said, “We have energy crisis. We need to extract coal. We must not delay and leave it buried. I did not know detail about it and now I know.”

Finance Advisor to PM Dr Moshiur Rahman participating in the discussion said India, Australia, Germany is doing open cut mining and all associated impacts are appropriately mitigated there. “I think open cut is also possible in Bangladesh and it has to be start without delay. Or else present energy crisis will further deepen.”

Energy Advisor to PM DR Tawfiq e Elahi Chowdhury opined,” we are acquiring land and rehabilitating and compensating people for Barapukuria. We can go for open cut on the other side of Barapukuria as well.”

The PM made brief comments for about 5-6 minutes on overall energy situation. She said “we would not take any decision on coal mining today. I need to know more about it. Especially I need to know about environmental impacts management, and also how we will rehabilitate affected people and how related issues will be addressed.”

PM also said, “I accept the fact that we can extract coal. Coal will help us confront power crisis. And there is no alternative to it. We need to finalize the coal policy as well. I understand that Germany opted for open cut method. But we have densely populated area unlike them. So we will have to be additionally careful. I would not take any decision today. We must extract coal. But before we take decision we need to know more associated impacts of open cut mining and mitigation measures. How people will be rehabilitated. How we can provide better life for people there. I would like to hear from you soon. I will decide after that on coal policy. And we will decide how we will extract coal.”

It is encouraging that Prime Minister and other senior government Energy Think Tank have come to realization that Domestic coal is the most feasible option to help assist redress of serious energy crisis Bangladesh is going through. Limited discovered natural gas resource is progressively depleting. It will take a while to explore and exploit new petroleum resource in onshore and offshore frontiers or further develop discovered resources. Bangladesh does not have capability to rely on imported fuel to generate power for a long time. Short time contingency actions will drain out significant resources from government exchequer.

We have about 4billion ton high quality mineable coal. All the discovered coal resources are concentrated within 100Sq miles in the greater Dinajpoor and Rangpoor area. Our geology, depth and thickness of coal seam do not support any method other than strip mining to extract most of the precious resource, we have sour experience in Barapukuria. Investing about 3400 Crore Taka in suppliers Credit we may finally extract less than 10% of coal in place. Mining in any other phase after completion in the present phase can be extremely hazardous. A recent visit of a practicing non resident coal miner surfaced various safety concerns and technology limitations of the under operation mine. Ministers and policy makers were thoroughly briefed about it in recent NRB brain storming. There was scope for Government to discuss in depth all aspects of Phulbari Mining with informed NRB professionals .But for reasons unknown beauracracy prevailed. Information on Phulbari mining was carefully shielded from NRB group. Petrobangla and EMRD played cat and mouse game.

Asia Energy has a signed contract with sovereign government of Bangladesh. Either party has specific obligations to perform under the contract. Government must not have fielded the contractor to site without approving Scheme of Development. Government departments must have approached to the communality and carry out required community consulation works. That would have eliminated the scopes of the opportunists to misguide community and hatch conspiracy. But anyway if any neutral person audits the present status of AEC and Phulbari mining only defaults of Bangladesh government will surface. The probable damage of Government is cumulating. There is no logical scope to terminate the contract with AEC as their default can not be established. There are issues which can be renegotiated. All the technical documents they submitted may be examined by accredited Mining consultants. Issues like export provisions and royalty limit can be revised. But for the sake of Bangladesh interest Mining at Phulbari must start soon.

People have voted government to power to redress their sufferings. It is alright government is committed to safeguard welfare of the people. But when 150 million people is suffering from acute energy crisis Government can not have the luxury of keeping its fortune buried for ever.

Prime Minister is very right. She wants to be absolutely convinced about management of impacts of surface mining (water Mangement), relocation and rehabilitation of would be affected people. Wonder why EMRD and PB could not respond to Prime Ministers queries’. Have any of our policy makers read all the technical documents those Asia Energy submitted with Scheme of Development? Can Secretary EMRD or Chairman PB explain how water management has been proposed or how rehabilitation of the surface mining area will be done to return these to original or better state? Two reputed Australian Consulting Companies which do all works for top mining Companies ( GHD and SMEC) BHP Billiton & Rio Tinto have done all require studies in Phulbari . We examined all documents as our homework for NRB brain storming. But we were not allowed to discuss those or rather we thought it not too as Government did not provide us those documents officially. We were told PB our contact point was not custodian of such documents.

Time is fast running out. Wise people make mistakes but learn from mistakes. Delaying on unnecessary coal policy will prove counter productive .No civilized nation can even imagine a country like Bangladesh which relies so heavily on its own energy resources to fuel power generation can waste 4 years sitting on unnecessary coal policy formulation and get engaged in useless debate on mining methods. We hope PM will be wise enough to order immediate commencement of mining to extract maximum resources ensuring proper environmental and social safeguards.