GCM Resources Regulatory News (GCM)

8 August 2024

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Project Update

The Company advises that the staff, Dhaka office and Phulbari facilities of its wholly owned subsidiary, Asia Energy Corporation (Bangladesh) Pty Ltd, remain safe following the past two weeks of country-wide protests in Bangladesh and the subsequent resignation of their Prime Minister on 5 August 2024.

GCM's Chief Operating Officer is in Bangladesh and reports that staff are in good spirits and had taken precautions to minimise personal risk and protect company assets.

With the departure of the Prime Minister, the protesters are engaged with the President and Chief of Army Staff to map the way forward for the country. The first step has been that parliament was officially dissolved. Their next step is to quickly appoint an "Interim Government". Although the full composition of this Interim Government is yet to be confirmed, it is reported that Nobel Laureate Dr Muhammad Yunus has accepted to take the lead as Chief Adviser.

Our Chief Operating Officer today reported the situation in Bangladesh is calm and moving towards normality. Appointing the Interim Government is a high priority to underpin law and order and continued development of the country. 

Meanwhile, as also reported in the media over the past months, it is confirmed that the Bangladesh Power and Energy Ministry has prepared a presentation promoting the immediate development of the country's domestic coal deposits (including Phulbari). It continues to be reported that Bangladesh must develop its own energy resources to off-set expensive imported energy products with their inherent supply and cost risks. 

It is envisaged any new Bangladesh government will need to make decisions on energy supply. The Company is ready to assist and put forward the Phulbari coal mine development as an important contribution towards stabilizing the coal supply for Bangladesh's existing coal fired power plants, which now includes another brand newly commissioned 1,320MW power plant in the Payra area.

The Company is closely monitoring the situation in Bangladesh and will provide further updates as appropriate.

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About GCM Resources

GCM Resources plc (LON:GCM), the AIM listed mining and energy company, has identified a high-quality coal resource of 572 million tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project ("the Project") in north-west Bangladesh.

Utilising the latest highly energy efficient power generating technology the Phulbari coal mine can support some 6,600MW. The Project site can also support over 2,000MW of Solar Power capacity throughout the Project life span. GCM requires approval from the Government of Bangladesh to develop the Project. GCM requires approval from the Government of Bangladesh to develop the Project. The Company has a strategy of linking the Company's mine proposal to supplying coal to the Government of Bangladesh's existing and in the pipeline coal-fired power plants and / or power plants implemented with its development partner. Together with its credible, internationally recognised strategic development partner, GCM aims to deliver a practical power solution to provide the cheapest coal-fired electricity in the country, in a manner amenable to the Government of Bangladesh.