GCM Resources Regulatory News (GCM)

17 Aug 2005 07:00

Asia Energy PLC17 August 2005 Asia Energy submits Environmental Impact Assessment for its Phulbari Coal Project to initiate final approval process for the mine Asia Energy Corporation (Bangladesh) Pty Ltd, the wholly owned subsidiary ofLondon-based Asia Energy PLC, has formally submitted the Environmental ImpactAssessment ("EIA") for its Phulbari Coal Project, initiating the final approvalprocess for the mine with the Government of Bangladesh ("GoB"). The EIA is one of the key documents to be delivered to the GoB for the finalapproval to begin mining the Phulbari coal deposit. The EIA sets out in detailhow the social and environmental impacts of the proposed open pit mine will becarefully managed and minimised in accordance with the highest national andinternational standards. "The EIA represents the culmination of some of the most extensive researchcarried out on any project in Bangladesh," said Gary Lye, Asia Energy's CEOBangladesh. "It is thorough and comprehensive, and it underlines our commitmentto ensuring that we look after both the people in the affected area and theirenvironment." The EIA details the open pit mining process and demonstrates how people will beprogressively re-settled and compensated over the 30-year life of the mine, howlivelihoods will be enhanced through training and new job opportunities, andhouses and infrastructure re-located and re-built. It details how plentifulwater supplies will be maintained for both housing and farming, bio-diversityprotected, and how the mined land will be progressively rehabilitated. It alsoexplains that Asia Energy will establish a Development Fund to promote jobs andassistance programmes. Copies of the five volume EIA totalling 2,490 pages - the product of 18 months'field research by some 300 international and local experts working for more than20 companies and institutions - were handed to the regional office of theDepartment of Environment (DoE) in Bogra, the centre responsible for thePhulbari area, and to the DoE's principal office in the capital Dhaka. The EIA is the second of a two-stage environmental approval process for AsiaEnergy to develop an open cut mine at Phulbari where exploratory drilling hasestablished a resource of 572 million tonnes of high quality coal suitable forboth steel and power generation industries. Environmental Site Clearance for theProject, which was granted in March 2005 after submission of an InitialEnvironmental Examination, completed the first phase. "The EIA is another important milestone towards the successful development ofthe Phulbari Coal Project," said David Lenigas, Joint MD Asia Energy PLC. "Wewill be following up in September with the submission to the Government of aScheme of Development detailing the mining aspects of the Project. The detailswithin the EIA and the Scheme of Development will together provide the necessarycore information required for the production of the Banking InformationMemorandum. This document will be used by the Company and its bankers BarclaysCapital to finance this exciting project." At full production the Phulbari mine will produce 15 million tonnes of coal ayear. Mine Development is currently planned to begin in 2006. First coal iscurrently scheduled some time in 2008 depending on the final development andmining schedule adopted. ENQUIRIES: 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