Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, lode,

vein, (coal) seam or reef, which forms the mineralized horizon and package of economic interest to the miner. The materials of economic interest (aka as ore) recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock salt and potash. Mining is required to obtain any material that cannot be grown through agricultural processes, or created artificially in a laboratory or factory. Mining in a wider sense comprises extraction of any non-renewable resource (e.g., petroleum, natural gas, or even water).

Mining in Bangladesh Overview

Bangladesh is one of the world's poorest countries with underdeveloped mineral resources. The government has offered several incentives to foreign investors including 100% share ownership, except in four areas, including mechanized mineral extraction within the bounds of reserved forests. Private investment is allowed in gas exploration and development and other mining and exploration activities .So far 3,000m tonnes of coal reserves have been discovered across the country. This is the equivalent of more than two years' consumption of all grades of coal by the US (1,400m tonnes annually). China consumes 1,000m tonnes annually. Bangladesh's coal is mostly high grade. Aside from its large identified natural gas reserves, Bangladesh had few mineral resources. The Bay of Bengal area was being explored for oil, and in some offshore areas, drilling was being conducted by international companies. Bangladesh had reserves of good-quality coal in the northern districts, but extraction has been difficult since many deposits were located at a depth of more than 900 m. Production estimates of mineral commodities in Bangladesh in 2000 included hydraulic cement, 980,000 tons; marine salt, 350,000 tons; and limestone (mined in the Sylhet and Chittagong regions), 28,000 tons.

Coal Mining in Bangladesh- Overview

According to the 2010 BP Statistical Energy Survey, Bangladesh had 2009 coal consumption of 0.35 million tonnes oil equivalent.

Substantial reserves of coal, estimated at 1,000 Mt, are known to exist in the Jamalganj and Rajshahi areas, but they lie at a depth in excess of 900 m, making exploitation both difficult and expensive. As a result, the country has to import about 60,000 t of coal from China, India and Indonesia. Coal was first discovered at Phulbari in north-west Bangladesh during surveying and drilling between 1994 -1997 by the Australian mining company BHP, which entered into licensing and investment agreements with the Government of Bangladesh. These agreements were acquired by Asia Energy Corporation Bangladesh Pty Ltd in 1998 and were in turn taken over by Asia Energy PLC in 2003. BHP established the presence of a coal deposit of between 14 and 45 metres thickness at a depth of 150 metres to 250 metres with inferred resources of 387 million. Subsequent drilling by Asia Energy increased the estimated in situ resource to 426 million tonnes. The coal resource (JORC code indicated and inferred) is 370 million tonnes. In September 2004 studies by Asia Energy indicated the Phulbari Coal Projects outstanding economic potential for an open cast mine. Based on a 15 million tonnes per year coal operation and a 30-year mine life, showed a Project Net Present Value of US$2.3 billion using a discount rate of 10%. Start-up capital to the second year of production was estimated at approximately US $530 million. The low sulphur coal type at Phulbari, varying between High Volatile A and High Volatile B bituminous, will be suitable for both a minemouth power station and for export to Asian seaborne markets. The projected mine offers a large number of benefits for the local, regional and national economies of Bangladesh. The Bangladesh government will receive an estimated $245 million annually in taxes and royalties at an annual production of 15 million tonnes and based on a coal price of $50 per tonne. Production at Phulbari would significantly reduce Bangladeshs dependence on imported coal and help replace the countrys dwindling reserves of natural gas as a power source. Power is in scarce supply in Bangladesh with fewer than one in four having regular supplies of electricity. At present two major mines are being developed by Petrobangla to extract about 1 million tons of coal and 1.65 million tons of granite respectively from the Barapukuria Coal Mine and Madhyapara Hard Rock Mine. These deposits occur at depth range of 150 to 280 meters. In addition, two more mining projects are being processed, to be implemented preferably by the publi sector under BOO/ BOOT/ BOT mechanism. These two projects aim at the development of the Khalashpir coal deposit and the Jaipurhat integrated limestone mining and cement complex.

Companies and Organizations linked to Mining in Bangladesh (4)

Name General Information Name: Ministry of Energy and Mineral Resources, Bangladesh Entity Type: Government Registered In: Bangladesh Business Sector(s): General public administration activities, Mining Industry Regulation Name: Bangladesh Oil, Gas & Mineral Corporation Entity Type: Company Registered In: Bangladesh Short name/Abbrev.: Petrobangla Business Sector(s): Extraction of crude petroleum, Contract Bangladesh Mineral Oil & Gas Corporation (BMOGC) was created through the Presidential order #27 on March 26, 1972. Nature of Business Related Organizations Has a share in: Bangladesh Oil, Gas & Mineral Corporation Dhaka, Bangladesh Is a division of: Government of People's Republic of Bangladesh Bangladesh Products/ Services People Contact Information Ministry of Energy and Mineral Resources, Bangladesh Tel: +880 2 9559928 Office Location: Bangladesh Secretariat Dhaka Dhaka zila Bangladesh Chairman: Mr SR Osmani Director (Planning) : Mr M Ali (Muqtadir) Director (PSC): Mr R Abedin (Raihanul) Bangladesh Oil, Gas & Mineral Corporation Fax: +880 2 912-0224 Office Location: Petrocentre, 3 Kawranbazar Dhaka Dhaka zila Bangladesh

Ministry of Energy and Mineral Resources, Bangladesh

Bangladesh Oil, Gas and Mineral Corporation

Geological Has a share in: 1)Bakhrabad Gas exploration Systems Limited 2)Bangladesh Exploration and Production Company Ltd 3)Bangladesh Gas Fields Company Limited 4)Barapukuria Coal Mining Company Limited

Mining

5)Gas Transmission Company 6)Jalalabad Gas Transmission & Distribution System Ltd. 7)Maddhapara Granite Mining Company Limited 8)Pashchimanchal Gas Company Limited 9)Titas Gas Transmmision and Distribution Company Limited Has shareholder: Ministry of Energy and Mineral Resources Barapukuria Coal Mining Company Limited is a new company formed to operate the under construction coal mine at Barapukuria. The mine was expected to be fully operational by 2001, with a capacity to produce about 1 million tons of coal Has shareholder: Bangladesh Oil, Gas & Mineral Corporation Dhaka, Bangladesh Coal Managing Director: Mr Quamruzza man (Md) Barapukuria Coal Mining Company Limited Tel: +880 5 5268-9152 Fax: +880 2 811-8136 Office Location:

Barapukuria Coal Mining Company Limited

Name: Barapukuria Coal Mining Company Limited Entity Type: Company Registered In: Bangladesh Short name/Abbrev.:

BCMCL per year. However, some Business Sector(s): geo-engineering complexity Mining of hard coal has delayed the completion of the mine. Once in production, the coal is expected to be used mostly by the proposed coal fired thermal power plant Maddhapara Granite Mining Company Limited Name: Maddhapara Granite Mining Company Limited Entity Type: Company Registered In: Bangladesh Short name/Abbrev.: MGMCL Business Sector(s): Heavy Minerals Mining Maddhapara Granite Mining Company Limited is a company formed to operate the under construction hard rock mine at Madhyapara in Dinajpur district. The mine was expected to be fully operational by 2001, with a capacity to produce about 1.65 million tons of hard rock per year. The completion of the mine is now delayed. The hard rock produced is expected to be used mostly as construction material and will replace import. Has shareholder: Bangladesh Oil, Gas & Mineral Corporation Dhaka, Bangladesh Managing Director: Mr ASMF Karim (Fazlul)

75-C, Indira road Dhaka Dhaka zila Bangladesh

Maddhapara Granite Mining Company Limited Tel: +880 5 2164974 Fax: +880 5 268-9013 Postal Address: Maddhapara Parbatipur ( Via Phulbari) Dinajpur Bangladesh