GCM Resources Agrees to JV for Bangladesh Coal, Power Project; Shares Soar19 Oct 2020 08:25
So this local caol is situated to an existing power station - And local is 50%+ cheaper than importing coal. Why would bangledesh (client) say no from here. And why would contractor not take 50% of the cash value by suppling teh client its own coal using their service? All good and upwards.
Shares in GCM Resources PLC jumped Thursday after the company said that it had signed an agreement with China Nonferrous Metal Industry's Foreign Engineering & Construction Co. to develop GCM's Phulbari coal and power project in Bangladesh.
The AIM-listed mining-and-energy company said the two companies have agreed to establish a joint venture to discuss and arrange works related to the project, including a definitive feasibility study and financing. China Nonferrous Metal is expected to acquire a 5% stake in the joint venture, GCM said.
As part of the agreement, China Nonferrous Metal will facilitate to arrange financing for the project and be appointed as exclusive engineering, procurement, construction and commissioning contractor, GCM said.
Shares in GCM at 0725 GMT were up 10.50 pence, or 110 %, at 21.50 pence.
GCM said it is in talks to include Power Construction Corp. of China Ltd. as part of the framework agreement.
"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 utilizing local fuel sources, following supply and importation disruptions," GCM Executive Chairman Datuk Michael Tang said.
The Phulbari project is planned to combine a 572 million metric tons high-grade coal mine with a 6,000-megawatt power plant.
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