(Alliance News) - Mining and energy firm GCM Resources PLC on Monday reaffirmed plans to complete the Phulbari Coal & Power project in Bangladesh.
The announcement comes after Chinese President Xi Jinping's speech to the United Nations, in which he stated China would not build new coal-fired power projects abroad and instead invest in green and low carbon energy in developing countries.
However GCM reasserted that it remains "committed to delivering the Phulbari Coal & Power Project in a form that fits in with the Bangladesh government's energy and power sector development ambitions".
Shares were trading 8.9% higher at 4.90 pence in London following the announcement.
"We are conscious of the need to balance social and economic development with climate change actions and have taken steps to ensure we can both deliver high quality coal to support power generation and also assist the Bangladesh government meet its greenhouse gas emission and renewable energy targets," said Chief Executive Michael Tang.
The project will include the use of the Phulbari coal mine in Bangladesh's north-west, able to support over 6,000 megawatts of power for 30 years. GCM said extraction of coal at the site may take advantage of developments in zero emission mining equipment and the possibility of powering equipment with solar power installed within the project area.
By Will Paige; willpaige@alliancenews.com
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GCM Resources (GCM)