GCM Resources PLC - mining and energy company - Inks framework agreement with China Nonferrous Metal Industry's Foreign Engineering & Construction Co Ltd, valid for 12 months, in relation to its 572 million tonne coal resource at the Phulbari coal and power project in north west Bangladesh. Agree to establish joint venture entity to be responsible for progressing and implementing the framework agreement. Says NFC will acquire a 5% interest in the joint venture entity from GCM. Is currently in negotiations with PowerChina with the intention to include Power Construction Corp of China Ltd as a party to the Framework Agreement.
GCM Executive Chair Datuk Michael Tang said: "Whilst the Covid-19 pandemic has delayed our progress with the project, we believe that it has encouraged the government of Bangladesh to review and enhance its energy security by utilising local fuel sources, following supply and importation disruptions. This supports our strategy to become an impact project for the people of Bangladesh, providing low cost and sustainable electricity in-country, by combining the company's coal mine proposal with mine mouth power plants generating 6,000 megawatts."
Current stock price: 15.62 pence, up 56% on day
Year-to-date change: up 23%
By Greg Roxburgh; gregroxburgh@alliancenews.com
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GCM Resources (GCM)