GCM Resources Regulatory News (GCM)

4 Oct 2005 10:03

Asia Energy PLC04 October 2005 Asia Energy PLC ("Asia Energy" or "The Company") Asia Energy lodges Scheme of Development with Government of Bangladesh for the Phulbari Coal Mine Asia Energy Corporation (Bangladesh) Pty Ltd, the subsidiary of UK-based AsiaEnergy PLC, officially presented the Government of Bangladesh (GoB) with theScheme of Development for its Phulbari Coal Mine Project in north-westBangladesh on 3 October 2005. "This is the culmination of two years' work and it sets out in detail how wepropose to start up and operate a world class coal mine in NorthwestBangladesh," said David Lenigas, Joint Managing Director of Asia Energy. "It represents the completion of another major milestone and also confirms amajor investment. We have spent US$18 million on the Feasibility Study to-dateand the Scheme of Development to prove up a resource of 572 million tonnes andmake sure that we have examined every eventuality." Asia Energy submitted the Scheme of Development for approval in accordance withits contract with the GoB. The Scheme of Development Report ("the Report") washanded to the Director of the Bureau of Mineral Development of the Ministry ofPower, Energy and Mineral Resources by Gary Lye, Asia Energy's CEO Bangladesh. It is further estimated in the Report that the Phulbari mine will produce over15 million tonnes per annum of mostly export quality metallurgical and thermalcoal for 35 plus years, at an average stripping ratio of 7.5 bcm/t. The Bangladesh Department of Environment (DoE) approved the Environmental ImpactAssessment (EIA) for the open pit mine and granted it Environmental Clearance on11 September 2005. A total of 67 separate reports were incorporated into the Scheme of Development,detailing every aspect of the future mine from mine design and water managementto coal handling and processing and coal transport. The 600-page Report alsocontains separate sections on environmental management, resettlement and thecommunity. Approximately 40,000 people will be relocated during the life of the mine, andthe Company has outlined to the GoB how they will be fully and fairlycompensated for any loss of land, homes and business. Importantly, this is some15,000 fewer than originally planned as the mine footprint has been realigned sothat it now avoids most of the eastern section of the Phulbari Township. In order to maximise revenues for both the GoB and Asia Energy - as set out inthe contract agreed with GoB - up to 12 million tonnes of the coal mined eachyear will be exported to international markets, most of this by rail to Khulnaand then by barge to a floating terminal off Akram Point, where it will beloaded onto seagoing ships. In addition to the direct and indirect revenues the GoB will earn from the mine,Bangladesh will benefit overall from a boost in export earnings, an additionalenergy source, improved infrastructure, more jobs and the development of a coalmining industry. UK-based Barclays Capital is the lead Advisor for the financing of the Project.The Company will now be finalising the optimal funding structure of the capitalcosts, construction costs and working capital requirements to ensure the overalloperating cost of the project remains at an optimal level. This information andother key Feasibility Study data will be made publicly available in due course. 4 October 2005 For further information please contact: Michael Frayne, Joint Managing Director Justine Howarth, Cathy Malinsmichael.frayne@asia-energy.com Parkgreen CommunicationsDavid Lenigas, Joint Managing Director Tel: +44 (0) 20 7493 3713david.lenigas@asia-energy.com justine.howarth@parkgreenmedia.comAsia Energy PLC cathy.malins@parkgreenmedia.comTel: +44 (0) 20 7079 1798, Fax: +44 (0) 207491 2758info@asia-energy.com; www.asia-energy.com This information is provided by RNS The company news service from the London Stock Exchange