RE: Bangladesh's Phulbari Coal Reserves Hold a Massive $83 Billion in Value, China Offers to Help28 Feb 2025 21:01
The Phulbari coal mine in Dinajpur currently holds 572 million tons of coal. According to a report from the Hydrocarbon Unit of the Ministry of Energy, the development of the Phulbari mine will require around 15 billion dollars, including capital and operational costs.
Based on the latest exchange rate of BDT 122 per dollar, this amounts to approximately BDT 1.83 trillion. If this investment is made, about 83 billion dollars worth of coal can be extracted (based on the price of coal from Barapukuria). In local currency, this amounts to nearly BDT 10.12 trillion. The Hydrocarbon Unit has already presented several recommendations on this matter.
However, the interim government has stated that it will not make any decisions regarding coal extraction from Phulbari based on these recommendations. According to policymakers in the country's electricity and energy sector, the next government will make any decision on this matter, with the Hydrocarbon Unit's recommendations serving as a helpful guide.
There has been a long-standing debate over the method of coal extraction from Phulbari. Local opposition to open-pit mining is particularly strong. In 2006, three people died during a protest against open-pit coal extraction from the mine, and many others were injured. Protesters argue that if open-pit mining is allowed, it will severely damage the local livelihoods, habitats, and the surrounding ecosystem. At that time, the government agreed with the residents that coal would not be extracted using the open-pit method in Phulbari.
According to the Ministry of Energy, about 7 percent of the country's total coal reserves are in Phulbari. If the mine is developed, 15 million tons of coal can be extracted annually, meeting 50 percent of the country's coal demand. Energy department officials claim that open-pit mining could begin within two years.
A seminar titled "Possibilities of Bangladesh's Coal Resources and Steps to Overcome Challenges" was held at the Bidyut Bhaban on Thursday (February 27). Dr. Arup Kumar Biswas, Director (exploration and production) of the Hydrocarbon Unit, presented the main paper.
The paper claimed that 124 drilling operations have been conducted in Phulbari, with three inside the Barapukuria lease area. A review of Phulbari's geology showed that the water-bearing layer is nearly adjacent to the coal layers in several areas. If underground mining is attempted, cracks in the surface could flood the entire mining area. Therefore, underground mining is not feasible at Phulbari. Open-pit mining is the only option for coal extraction.
According to the Hydrocarbon Unit, resetting those affected by coal extraction in Phulbari will take 10-12 years. A resettlement plan has been created following the ADB's guidelines. The plan states no relocation will occur before compensation and resettlement assistance are settled. Plans are in place to create a village with all necessary amenities near the mine, including land allocati
Sign In
Follow the stocks
