GCM Resources Signs Agreement For Phulbari Coal Project Development

(Alliance News) - Energy and mining firm GCM Resources PLC said Thursday it has signed a ...

Alliance News 11 July, 2019 | 11:53AM
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(Alliance News) - Energy and mining firm GCM Resources PLC said Thursday it has signed a memorandum of understanding with Foreign Engineering & Construction Co Ltd and Power Construction Corp of China Ltd.

Shares in GCM Resources were 18% higher at 24.82 pence on Thursday.

Foreign Engineering & Construction is part of state-owned China Nonferrous Metal Industry and engages in project contracting and nonferrous metal resources globally. Power Construction Corp designs and constructs hydroelectric and thermal power plants.

The memorandum forms the basis for a strategic partnership between the three companies to develop GCM's coal resource of 572 million tonnes at the Phulbari coal and power project in Bangladesh.

Under the memorandum, the companies will look to develop, finance and operate the project, pursue approvals for the project from the Bangladeshi government, while the Chinese companies will look to facilitate the project under China's "One Road, One Belt Initiative".

The memorandum of understanding is valid for six months, and can be extended by mutual agreement.

"The MOU with China Nonferrous Metal and PowerChina to develop the proposed coal mine is an important milestone in the project's development. Our strategy is to become an impact project for the people of Bangladesh, providing low cost and sustainable electricity in the country, by combining the company's coal mine proposal with mine mouth power plants generating 6,000 megawatts," said GCM Executive Chair Datuk Tang.

"Both NFC and PowerChina are highly respected global companies, and in becoming strategic partners to the company's project, will, in the board's view, add tremendous strength and credibility to our proposal," Tang added.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
GCM Resources PLC 13.25 GBX 0.00 -

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