Archive for December 12th, 2009

Coal in Phulbari, Birampur – Economy and Politics.

Coal is the most highly used source of energy for generating power in the world. Although, it has adverse environmental impacts, it is so widely used mainly because it is relatively cheap, abundantly available and readily fits with traditional power generation technologies. It is extracted from mines using both underground and surface mining techniques – either of them having advantages and disadvantages. Surface mining methods (i.e., open pit, strip or mountain top) are implemented in areas that are remote from human habitations and civic amenities (e.g., mountainous regions of British Columbia, Canada). In surface mining a larger proportion of deposits can be commercially extracted compared to underground mining. But, surface mining severely alters the landscape, which damages environmental value in the surrounding land.

Bangladesh has small coal reserves, and has consumed little coal in the past. Bangladesh began commercial coal production in April 2003 with the opening of the Barapukuria Coal Mine, which is expected to produce one million short tons of coal per year (Mmst/y), principally for electricity generation. This mine is being used to fuel the 250-MW Barapukuria Coal-Fired Power Plant in  Parbotipur, which began commercial operation in January 2006. Another possible coal mining project at Khalashpir is under consideration as well.

Despite Bangladesh’s small reserves, the government has recently promoted the development of coal to ease its reliance on natural gas for power generation. Although estimates vary, Bangladesh’s Energy Ministry judges that the country has up to 3.3 billion short tons of high-quality coal reserves. Energy value of it is 35 -40 TCF gas.

Coal Mining in Bangladesh

During the last few years several high quality deposits of coal have been discovered in the northern part of Bangladesh which spends a big part of its foreign exchange earnings for importing oil. It has about 6.5 tcft proven and probable deposit( 2009) of natural gas which is being rapidly consumed for power generation, industrial and domestic use. Therefore, the government wants to utilize coal for power generation in order to reduce dependence on natural gas. A list of locations with their known coal reserves is given in Table 1, and their relative locations are shown on the map of northern Bangladesh in Figure 1. The coal mine in Barapukuria is already in operation and it supplies about 3000 tonnes of coal per day to a nearby 250 MW power station. This is an underground mine using shaft technology and therefore did not require relocating local inhabitants. However, debate is going on about the development of the other mines regarding the use of appropriate mining techniques. If open pit method is eventually selected (as suggested by Asia Energy) for the Phulbari coal mine, about 50000 inhabitants from the area would have to be relocated.

 Coal Fields in Bangladesh: Reserve Data

Proven + Probable Reserve(mil.Tones	Proven Reserve (million tones)	Depth (meters)	Year of Discovery	Location/Field
390	303	118-509	1985-87	Barapukuria (2)
685	143	257-483	1989-90	Khalashpir (3)
572	572	150-240	1997	Phulbari (1)
1053	1053	640-1158	1962	Jamalganj (4)
600	150	328-407	1994-95	Dighipara (5)
Source:Bangladesh Govt. Website-http://www.petrobangla.org.bd/Final_coal_for_web1.pdf

 

Locations of coal minesCoal deposit locations in Phulbari and Jamalgang

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing coal mining

Bangladesh’s coal reserves have so far not been developed, mainly owing to a lack of domestic financing. To attract investment, the government has opened the coal sector to foreign bidding.

In July 2005, UK-based Asia Energy Corp. (AEC) submitted a proposal to develop a coal mine in Bangladesh’s Phulbari region. According to a Scheme of Development and Feasibility Study submitted to the government, AEC declares that the Phulbari site contains an estimated 572 million short tons of recoverable coal reserves. The initial investment in the project would be $1.4 billion, and the open-pit mine is expected to produce 15 Mmst/y of coal to fuel a planned 500-megawatt power station.

Extraction of coal and environmental debate.

-      As proposed by the Swiss based Berne Declaration and the Bank Track network, the Phulbari Coal mine is “open cut” meaning that between 140 and 300m worth of earth will need to be removed to access coal seams deep under ground. Some 50 000 residents will need to be relocated, potentially reaching 200 000 should full scale expansion plans be realised. Extensive damage to the UNESCO declared world heritage site Sundarbans mangrove forest, the largest single block of mangrove forest in the world, is also expected from port facilities. Energy production from coal poses substantial impacts on climate change, and is also inappropriate at a time when Bangladesh is appealing to the rest of the world to curb greenhouse gas emissions.

-      According to the Feasibility Study submitted by Asia Energy, up to 40,000 people would gradually be relocated away from the Phulbari area that currently live on or near the planned mining locations.

What are the expert’s views -

v  A geology professor of Dhaka University, Badrul Imam, told the following at a meeting –

• that the amount of coal in the country was very limited and exclusively situated in two northern districts, Dinajpur and Rangpur.
• ‘If you consider our entire coal reserve, which is around 2,500 million tonnes, with the Raniganj coal field in West Bengal that has a reserve over 22,000 million tonnes, you can surely see how limited our coal reserve is,’ he said at the meeting of the committee.
• that the country would face difficulties in both underground and open-pit mining in Dinajpur and Rangpur because of presence of a layer of water over the layer of coal.
• with regard to open-pit mining, that this method would be difficult and have adverse effects because of the tremendous land shortage and the extreme density of population.
• ‘One can imagine what will happen by 10 to 15 years if two or three open-pit mines are operated in Dinajpur and Rangpur districts. The population of the districts will increase but not the land,’ said professor Imam. The Daily Star

v  Professor Anu Muhammad, member secretary, National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports, Bangladesh interviewed on camera by Shahidul Alam appears in Meghbarta – online magazine on 17th October, 2009. (Questions not relevant to coal, left out)- Admin – dinajpurbd

Shahidul Alam: It is alleged that you and the others are preventing the extraction of coal and the search for gas. How then do you expect the nation’s fuel and electricity problem to be solved? Anu Muhammad: These statements are often put forward as part of the anti-movement propaganda. We are not opposed to the extraction of gas or coal. On the contrary. Our point is that these resources are limited, they are non-renewable, hence it is essential that their control should reside in the people of Bangladesh, that they should be extracted through environment friendly methods, that they should meet the electricity and fuel needs of the millions of Bangladeshi homes which need it the most.In other words, the process of extracting Bangladesh’s natural resources—whether gas or oil or coal—should begin only after we know for certain that the last drop will be used for the benefit of Bangladeshis and not for the benefit of multinational companies (MNCs) and their national accomplices. Their motive is to plunder and make lots of money through exporting it, of course, they call it “development.” To phrase it differently, our movement aims at ensuring people’s control over national resources, these belong to the people, these should be used for industrialisation, for agricultural production, and for the fulfilment of people’s electricity and fuel consumption needs.S A: Other countries in the world enter into contracts [similar to the PSC model in Bangladesh] for the extraction of oil and gas. According to government sources, we have neither qualified personnel nor the necessary technology, but the National Committee is creating confusion among the people—what is your response to this?  A.M: It’s not correct that all countries enter into similar contracts. Look at the US. Its own gas and oil reserves are lying beneath its soil, untapped, while it lords over the oil, gas and coal wealth of other regions, while it wages wars against people, while it occupies the lands of others, while it does as it pleases. And then you have the African countries. As a continent, Africa is the richest in natural resources but it’s people are the poorest and it is the most violence-ridden. These two facts are inter-related and it is this that has made the continent a victim of multinational companies and imperial domination. MNCs have been present in various African countries for the last hundred years or so but these countries have not gained freedom from poverty, nor have they gained control over their natural resources. On the contrary, a country like Nigeria, rich in oil resources, has exported vast quantities of oil abroad. Its oil wealth has led to the creation of a corrupt group and the increase of authoritarianism and poverty. This is a picture from Africa. You will see different pictures elsewhere, for instance, if you look at China, or Malaysia, these countries have built up their own institutions and have asserted national control over their resources through these institutions. A different kind of example exists in the case of Venezuela and Bolivia. These countries were earlier like African countries but are now working towards building a future on the basis of political consensus and popular will, they are trying to exercise control over their natural resources. And while attempting to do this, they are forcing the foreign companies to agree to their terms and conditions, to sign new contracts with them. If the companies do not agree to this, they are kicking them out. If any country wants to maintain control over its natural resources it needs the political will, and it needs to develop the institutional and technological skills. What [the Bangladesh government] keeps saying is that we do not have the technology, we do not have the skills. Well, obviously this does not develop overnight or fall from the skies. That is not how it happened in the case of those who are lording over the world now. If any country keeps repeating ad nauseum for decades on end that they have neither the skills nor the technology, obviously, that country has no future. What these powers do to occupy a nation is, you see this if you look at world history, they cultivate feelings of inferiority among the people, and if you keep thinking `we can’t do it,’ then you are likely to end up believing it. And the other thing that the powerful do is to make the nation’s rulers corrupt. Both these things have happened in Bangladesh. [Besides demanding that Bangladeshi people should have control over the nation's natural resources] our movement also aims at freeing people from this inferiority complex, from this invasion. It aims to make people think positively, to think that it is possible for the people of Bangladesh to assert control over its resources, to develop the skills needed. It is control that is most important—it is that which needs to be ensured—once you can ensure that you can always employ people with requisite skills from abroad, or you can seek the assistance of friendly neighbouring nations, those who sincerely want to help us. But the present trend of handing over control of natural resources to multinational companies, if this trend is not reversed, we will end up like Nigeria. If we cannot stop it, our resources will be used by the MNCs, they will profit from our resources, and we will not be able to get out of this intolerable situation, that exists in Bangladesh now. S.A: The model PSC (Production Sharing Contract) 2008 had been on the website for a year. Why didn’t you comment on it then or advance any programme? A. M: It’s not true that we didn’t say anything then. The PSC 2008 model was designed during the caretaker government regime. It was uploaded on the net to facilitate international bidding, not to elicit comments or responses from members of the public. It is not as if bidding proceeded after comments were incorporated. Not at all. It was made available on the net to facilitate the bidding  of multinational companies. We began talking about Bangladesh’s maritime boundaries from 2007 onwards. It is of utmost importance that these boundaries are fixed. If this is not done we will end up losing control not only over our offshore  natural resources, but over maritime territory as well. Secondly, Bangladesh is still suffering as a result of PSCs signed earlier. Bangladesh’s maritime territory has been divided into 28 blocks, if gas exploration is carried out, and if gas is found and extracted from these blocks, we will be worse off. We need only 200-300 crore taka annually to make Bapex—a national institution—strong. It is absurd that the Bangladesh government does  not have this amount of money, that it does not have the 75 crore taka to buy oil rigs, but that it can spend 3,000 crore taka in subsidies each year to buy gas from foreign companies, that the government is then not short of money. Strange, huh? It is because of the PSC that instead of economic development taking place, we are going through this big crisis, and the price of gas and electricity has increased which has had a terrible impact on the economy as a whole. People are deeply worried about the rise in prices, and one of the main reasons for this rise is the oil-gas contracts. And that is why we [the National Committee] have insisted that history should not be allowed to repeat itself, that only such PSCs should be entered into which has the consent of the people. Third, we have calculated and found out that to ensure energy security for Bangladesh for the next 50 years—even at an estimated annual growth rate of  6%—we need 110 TCF gas. At present Bangladesh has 7-8 TCF gas. If we calculate the energy value of our coal it stands at 35-40 TCF gas. This means that in order to gain access to the needed 60-70 TCF gas we will have to rely fully on the Bay of Bengal reserves. And this is why—because we want to ensure energy security for Bangladesh for the next 50 years—we cannot afford to enter into export-oriented contracts. Foreign companies will always exert pressure for the inclusion of export clauses because selling energy on the international market reaps them bigger profits. S. A: One comes across the claim in different newspapers that if the National Committee had not waged the  movement against the extraction of coal in Phulbari, our electricity problem would have been solved by now. How do you respond to that? A. M: This too is incorrect and is part of the propaganda against our movement. If coal extraction had begun, say, if there had been no resistance in 2006 and they had begun extraction in 2007, they would not have reached production stage until 2014-15. And very little of the coal extracted would have been used for electricity production within Bangladesh. Hardly any. Seventy five to eighty percent would have been exported abroad. In the case of Phulbari coal project, 94% ownership would have been vested in the hands of Asia Energy, Bangladesh would have only 6% royalty, and she would have to build quite a lot of infrastructure with that royalty money. These would include rail lines for exporting coal abroad, building rail lines from Phulbari to Mongla. Our point is that Bangladesh would not have exercised control over the coal that was to be extracted, neither would its export have benefited us financially. On top of everything, the method of coal extraction would have greatly harmed cultivable land in that area. This area in Dinajpur is very fertile, it is also free of natural disasters. It is one of the areas which steadily supplies food crops to Bangladesh. Also, it is less poverty-stricken than other areas in the north. The steady supply of food would definitely have closed down if the cultivable land had been destroyed, which of course is what happens in the case of open pit mining. Secondly, one of the renewable resources that Bangladesh is blessed with—and in vast quantities—is water. Open pit mining will adversely affect both surface-level and underground water resources. Underground water levels will surely fall dramatically. The loss of productivity of cultivable land and the destruction of people’s livelihood will directly affect a few crore people in Bangladesh. Desertification is sure to occur, and along with it, pollution of surface level water as well. It is not correct to view Bangladesh’s water resources as inanimate. Water is living matter, it sustains life and modes of living. The pollution of water will create problems in our drinking water, it will also affect our fish resources, and the diversity of life that exists in our ecology. We lost lives in Phulbari. The tremendous resistance which took place in Phulbari is not only a great inspiration for the people of Bangladesh, it is so for people the world over. It has protected the nation from incurring great losses and destruction. These projects of “destruction” are termed “development” projects by the government, by the MNCs and the World Bank, the Asian Development Bank, and by their consultants. The peoples movement has revealed very clearly that these programs for development are nothing else but programmes of death and destruction. There are many people who cry crocodile tears, who repeatedly say that if MNCs cannot make any profit then why should they bother to come to Bangladesh! Our argument is simple: it is the people’s needs that must come first, all plans should be built around this basic fact. The World Bank, the IMF, the ADB, the US embassy, the Indian High Commission or India-Myanmar-China-United States, the idea that we should turn over our country to them, to protect their interests, that our people should be sacrificed for their interests is absolutely absurd. Unless a big change is effected through this political struggle no real change or development in Bangladesh is possible. What we are saying is: real change is essential. Real change is possible. It is our movement that makes the difference.

Draft Coal policy

The draft policy suffers from many discrepancies and inaccuracies with regard to the information concerning reserves, utilization, and impact(more on draft policy in the NRB’s initiative). To begin with, the recoverable coal reserves mentioned in the draft differ from those in the national energy policy of 2004, and in GSB publications.

For example, the reserve for Phulbari coalfield is shown to be 400 and 572 million tons (MT) in the national energy policy and the draft coal policy, respectively. The coal reserve for Khalaspir is 450, 143, and 400 MT as per the national energy policy, the draft coal policy, and the GSB, respectively. Because of the great depth, the draft coal policy excludes 1053 MT of reserve in Jamalganj coalfield.

However, instead of excluding Jamalganj and other deep coalfields from the master plan, it is important to investigate the feasibility of developing these fields using underground coal gasification.

The draft policy has outlined four scenarios of power demand and distribution of usage of fuels for the period 2005-2025. These scenarios are based on the annual GDP growth rates of 5.2% and 8%, as well as for “sufficient” and “limited” natural gas scenarios beyond 2011. The basis for calculation for these scenarios is not clear. For example, as per the calculation (for GDP growth rate of 8%), the amount of electricity generated per MT of coal varies between 397 MW and 2560 MW, with an average of 712 MW. The reason for such a great variation (more than six times) is not explained.

A critical review of the coal policy,Md. Khalequzzaman, Ph.D.,The Daily Star,15th August 2007

NRB’s initiative on Coal extraction- a critical review on our coal

Dr Tawfique-e-Elahi , Advisor to Prime Minister of Bangladesh advised NRB energy professional Saleque Sufi living in Melbourne Australia in early February(2009) to source NRB professionals working with coal mining and related issues for a possible brain storming in Bangladesh.

 

 

Exerpts

Petrobangla professionals living abroad formed Petrodesh, a web based group which later extended span adding Petrobangla professionals working in Bangladesh also.

Important brainstorming was held at Jamuna resort from 15^th-19^th June 2009.The NRB professionals were invited by the Government of Bangladesh to help assist government in formulation of the all important Coal policy with independent views. The NRBs deliberated on various related issues of coal mining like geology, hydrology, soil conditions, rock mechanics, environmental and social impacts management, resettlement and rehabilitation, mine city development.

The lone under operation coal mine at Barapukuria using Chinese Technology has triggered panic in the mine command area following initiation of subsidence.

Dr Elahi thought NRB professionals could share their experience and deliberate on

• Barapukuria Underground mining specifically on mine subsidence, mitigation measures and future of the mine.
• Mining at Phulbari, Dighipara, Khalaspeer and Jamalgonj to explore and exploit the resources.
• Draft Coal policy.
• Water Management
• Resettlement and Rehabilitation issues of mine affected communities.

 

10 NRB professionals from USA, Canada and Australia eagerly participated in the brainstorming who are working with foreign companies in energy sector.

NRBs requested for some information from Petrobangla contacts in mid May. Some information could be gathered from various websites. In this situation professionals through personal initiatives collected information from different sources and shared among themselves. Australia based professionals occasionally assembled at Monash University and made initial brain storming. Professionals of USA also kept exchanging ideas.

Practising Mining Engineer Masud Hussain volunteered to visit Barapukuria Mine and stay there for few days to have first hand idea of Barapukuria situation while Saleque continued his search for documents. Still information related to Coal policy and Barapukuria mining were only shared and no information were officially provided on Phulbari mining and other discovered coal fields.

NRBs were informed that Bangladesh’s intention of   endeavouring to conclude a coal policy which saw 9 drafts in about four years. Two sharp lines of conflicting thoughts have evolved in Bangladesh through intensive debates in seminars, workshops and TV talk shows.

As such in an effort to obtain neutral views of NRBs, Government- NRBs contributions could be extremely important. Government also believed that NRB would not align with either of the two conflicting interest .Each NRB pledged to contribute from their neutral stand point.

Among others in the four day sessions Ministers, Advisors, Members of Parliament of Dinajpur and members of Parliamentary Standing Committee on Power, Energy and Mineral Resources  participated in very interactive sessions. Petrobangla and Government officials, Academia, representatives of GTZ and UNDP also featured in brain storming.

Opportunity Lost:

Bangladesh had great opportunity to effectively utilise the presence of some rare Bangladeshi energy breeds for reviewing as much issues as possible by the informed line NRB professionals but for conservative stance of some section of EMRD officials many contentious issues like disputes over mining methods, Phulbari mining issues remained outside discussion as Petrobangla under instruction from EMRD did not share information with NRBs. All relevant information was collected by NRBs through personal efforts and required discussion materials were prepared. But NRBs declined to discuss and opine on contentious issues failing to get information officially.

Barapukuria Underground Mining:

NRBs had reasonable information on Barapukuria mining .Engr Masud also spent useful time in the mine in days leading to the brain storming. NRBs could make specific recommendations and suggestions on Barapukuria. It appeared that there were several irregularities since the conceptual stage through approval of project, Engagement of Chinese Contractor on Suppliers credit, engagement of apparently inefficient Consultant. The mine design, mining technique appeared faulty and inappropriate.  On physical examination the HSE standards, mine safety appeared grossly inadequate.

The regional geology, Geo Physical condition, Soil Charactersics, hydrology, soil-rock mechanics, depth and characteristics of coal seam did not technically support underground mining.  Still to favour vested group costs of an inevitable impact – mine subsidence was deliberately excluded to make the unviable project viable. With vision to mine 20% of coal in place leaving critical cost of subsidence impacts the project was approved during  1994 when Geologists and Mining Engineers were spearheading energy sector. Masud in his presentations clearly identified the areas of concerns and vulnerability of the mining operations.

NRBs felt it wise to continue the present stage of mining with great care addressing safety concerns. Simultaneously appropriate planning to mine the remaining coal should be made by consultants having proven track record and experience. The various incidents of mining from mine flooding, gas formation, subsidence need to be critically analysed and properly documented for future reference.

Health, Safety and Environment Plan, Construction Execution Management Plan, Mine Ventilation Plan, Dust and Noise management plan, Water Management plan, Evacuation plan, Plan to work in Confined places , HAZOP must be made and meticulously followed. All persons working underground must be regularly made aware of mining hazards. Mine Manager and safety personnel must spent time underground on regular basis. Safety management drills must be carried out on regular basis. Mine inspectors must regularly audit mining operations and safety standards. NRB professionals felt that the Bangladeshi professionals working in the mine in doing wonderfully well with limited or no support of higher management and Chinese contractor as well as Consultant to keep the mine running. The very eager Barapukuria mining professionals need specific training. The Chinese contractor must be made to improve safety standards and prepare and submit all their available documents in English for auditing.

It appeared that mine at bottom seam through slicing in inappropriate age old Chinese only method triggered subsidence which has already made minining of a section of other seams impossible. This lost self burning coal may soon cause fire and other untoward incidents.

On preliminary analysis on available data and information it appeared that strip mining is the only answer to recover almost all of the remaining coal excluding the section already lost for our ignorance. However detail professional mine designing need to be made after documenting all information to opt for specific mining method.

Barapukuria Mining Project was not viable from day one .Some critical cost elements were deliberately ignored in cost benefit analysis. If included the project would not have been approved. The project was made viable considering 20% recovery. After mine flooding the revised design targeted for 10% recovery which even seems highly unlikely. What a colossal wastage of national resources.

Policy matters

Draft Coal Policy:

It was general feeling that such a voluminous policy document is unnecessary as there are National Energy Policy Mine & Minerals Act, Mines and Minerals rules are already in place. Policy should be a concise few page document. Mining methods, coal reserve, production control, price capping etc must not feature in policy.NRBs also felt that Coal Sector development committee was unnecessary and absence of coal sector development plan must not impede coal mining. NRBs identified 5 key areas which can feature in Coal policy. These are

• Energy Security.
• Institutional and Legal Framework.
• Resource Mobilization and Economic Issues.
• Source of Financing.
• Incentives for FDI
• Health, Safety and Environment.
• Resettlement and Rehabilitation.

 

NRBs formed subgroups and after intensive discussions with assembled professionals formulated their recommendations. Later NRBs presented the set of recommeations for brainstorming. The recommendations on further value additions was planned to be submitted to government.

The basic suggestions were:

Energy Security:

Ø       The draft Coal Policy has estimates on the coal demand only for power generation for the next 20 years. This projection needs to be revised taking into consideration other industries where natural gas is currently being used and can be used as primary fuel.

Ø       Based on these estimates Bangladesh has to maximize the extraction and utilization of coal professionally addressing all mining impacts. The projected figures in the Power Sector Master Plan 2006 will be difficult to achieve, if the GDP growth rate of 8% is considered.

Ø       The full extent of the Bangladesh coal resources is still to be established. Further exploration and comprehensive feasibility studies need to be accelerated.

Ø       Based on current estimates of exploitable reserves, the question of export appears unrealistic. However, in situations where production goes beyond consumption capacity of domestic market, export may be considered in special situations.

Ø       The method of mining should be aimed to maximize extraction with due considerations to the environment.

Ø       The utilization of coal should be based on the principles of maximum value-addition and efficiency of use.

Institutional & Legal Framework for Coal and Minerals Development.

NRB professionals agreed with draft coal policy provision for formation of a separate corporate body /holding company Khoni Bangla for managing and owning all mining related public sector initiatives. The expertise of mining activities must be condensed to Khonibangla from BMD, PB and new line professionals must be recruited and arrangement for training them in accredited mining institutes must be made. Geologists, Geo Physicits and Mining Engineers are required for exploration and mining while electrical and mechanical engineers usually run mines.

Bangladesh must immediately introduce Mining Engineering Department at BUET. Absence of mining engineering education has seriously handicapped capacity of local mining industry. Mining technology must also be introduced in some selected polytechnic institutes .When mine city is set up a mining institute for continued training of mining pros may be set up.

NRB professionals suggested for formation of two companies Bangladesh Coal Company Ltd and Bangladesh Mineral Company Ltd. These companies may operate as fully autonomous body under company act.

NRB professionals suggested to Amend BERC Act to include Coal Sector Regulation within its ambit. . The requirement of independent regulatory commission is essential for growth and development of coal sector. NRB professionals suggested the following additional responsibilities for BERC. They also suggested engaging young truly efficient, dynamic energy sector professionals of wisdom and vision in BERC.

BERC Responsibilities

• Licensing & Permitting for Mining (BMD’s licensing & permitting functions will merge with BERC)
• Formulation of Mine Safety Codes.

 

Office of Inspector General of Mines.

NRB professionals suggested for formation of an office of Inspector General of Mines under Bangladesh Energy Regulatory Commission (BERC). Mine inspectors must continuously inspect mining operations and audit HES plans.

Inspectors must ensure compliance & enforcement of approved plans & applicable codes

Dispute Resolution Board

NRB Professionals also suggested for constitution of a dispute resolution board to hear and resolve disputes amongst stakeholders, including affected community in mining area. In all mining operations some disputes always surface. Presence of a neutral dispute resolution board will act as confidence builder for all stake holders of mining activities.

NRB professionals also suggested strengthening capacity of DOE under Ministry of Environment and Forest. They suggested the following responsibilities for DOE.

DOE to develop the following footprint-plans & standards:

ü                   Environmental Quality Standards

ü                   Effluents and discharges

ü                   Dust & Noises

ü                   Erosion & Sedimentation Control

ü                   Rehabilitation & Resettlement

ü                   Reclamation

ü                   Indigenous Culture & Heritage

ü                   Health, environment & Safety

ü                   Other required standards to cover various aspects of mining

Mine developers would prepare detail plans based on foot print plans of DOE and submit these plans to BERC along with other documents for Mining Lease and Exploration License.

Resource Mobilization & Economic Issues:

NRBs identified relevant areas of mining which they thought would require mobilization of resources.

Financial Needs. 

• Exploration   
•  Feasibility  Studies
•  Independent Detailed Cost Benefit Analysis
•  Land  Acquisition, Rehabilitation and Relocation , Mine Development
•  Mine Operations/Production
•  Mine Closure.
•  Education and training of mining professionals in BUET and other relevant institutions.
•  Creation of mining engineering Department in BUET
• Research & Development on mining techniques, Environment friendly  Utilization
•  Supporting Infrastructures.
•  Market Development /Power Plants.
•  Economic Zones (Mining City; Tourism, Fisheries)

 

SOURCES OF FINANCING

NRBs also suggested some sources of mobilizing finance. These were

• Government Financing
• Public Private Partnership (PPP)
•  Stock Exchange.
•  Development Partners.
• Bank Loans
• Leasing
•  Welfare Funds.
• Security Bond/ Environment Protection ( 2%).
• Exports.
• Investment from Non Resident Bangladeshis.(NRBs)

 

INCENTIVES (FOR FDI) 

In group discussions it appeared that some incentives were required to be provide for attracting Foreign Direct Investments. These were

• VAT (Machinery, spare parts)
•  Tax Holiday
•  Convertible Currency .
•  Profit Uncapped with guarantee of a certain % Reinvestment.
•  Supporting Infrastructure.

 

Health, Safety & Environment (HSE) Issues

NRBs considered these to be key aspects in mining and subsequent coal transportation and processing operations. After extensive discussion the following were agreed.

A national standard needs to be developed under BERC on an urgent basis instead of referring to Equator Principle for coal mining.

            -Incorporate options for people to go to court

Details from the draft coal policy 2008:

NRBs also made certain other recommendations on different other provisions of draft coal policy.

 NRBs felt that higher royalty for coal in domestic market would impact on coal price to power generation and other use as developer would add this to cost of mining. 5% for underground mining and 6% for surface mining would be appropriate in the overall context of the coal sector development.

NRBs opined that policy must not deal with production capping. It must be left on market situation. Vigorous efforts must be made to expand coal use in domestic market. In special situation where local market can not absorb all coal produced in economic mining there must be provision for export citing situation of Barapukuria coal

Some NRBs termed it silly to import inferior quality Indian Coal (High Sulfur and ash). Bangladesh coal import provision restricts import of higher than 1% Sulfur coal .But year to year coal merchants get exemptions. Dirty coal banned from use in India is dumped into Bangladesh.

NRBs observed that there is a provision for Bond/security deposit of 2% of Estimated Cost of the Scheme for environmental protection. Considering the massive impacts NRBs suggested for increasing the proposed amount.

NRBs also suggested for establishing baseline data for pre mining water quality and management before approval of EIA.

In section 8.3 of Coal Policy, NRBs suggested to include local govt. representative in addition to the District Commissioner and nominated members of general population to form an independent, local committee to observe impacts on the environment and society from pre-mine survey to the last stages of mining.

NRBs also opined that,

•          In section 8.4.1, if there is Acid Mine Drainage (AMD), leasee should be responsible during the mining period and for 5 years after the mining is completed

•          Appendix cha (this covers issues of noise, health safety of mine workers, dust pollution, water management/subsidence issues) needs to be highlighted more in the environment section of the policy

–         In terms of water management, incorporate the reality of arsenic pollution in underground water tables

–         Incorporate MDG issues as appropriate

•          Highlight awareness raising of impacts of mining and rights of the population of the mine impacted area.

•          In terms of mining, incorporate consideration of environmental impacts of coal transportation via roads, railways, waterways. May need an independent EIA

Resettlement and Rehabilitation

NRBs deliberated extensively on Resettlement and Rehabilitaion issues. Sultana Nasrin and Ahsanul Kabir presented their thoughts on Data Base Creation with application of GIS and also development of Mine City with Modern amenities. Dr Sarwat Chowdhury shared views on Green City. However the agreed positions were

Database Development:

- Aerial Photo 

- S-LIS (Social and Land Information System)

 Identification of Important Feature and Structure

            – Archeological and Social

            – Preserve and restore them with the consultation from archeological department

Landuse Management Plan (for 30 years)

NRBs categorized the mine affected communities  under three categories and suggested specific compensation and income regeneration measures  for them.

Affected Stakeholders

1. Primary: compensation , rehabilitation, alternative livelihood, skill training

2.   Secondary: temporary compensation, training for alternative livelihood

1. Tertiary:  Subsidence compensation, health and environmental awareness. And provision for water supply if disrupted (quality and quantity).

 

Simple structure of Mining: NRBs stated that mining is a team work of several professionals. Battery limits are well established for all professionals

Geologist define the Geology and Shape of the Ore body (Coal), only Mining engineers define how to safely extract the coal deposit in most economical way (whether open cut, underground or both in combination), then when it leads to feasibility study, all departments gets involved in the project evaluation life cycle in defining the project (ie; all relevant engineers only in related to mining operations, town planners, hydro, environmental etc…) from all sectors of the mining operations.

Post Brainstorming Activities of Some NRBs:

Seminar held on 19^th June 2009

NRBs in brain storming did not recommend for any particular mining methods but discussed in-depth on all forms mining methods and associated impacts. It was agreed that mining methods would only be adopted after extensive feasibility study and on detail benefit cost analysis.

Conclusion:

The assembled professionals were told what to do and what not to in given circumstances in initial resource investigation, resource definition, data basing information, investigation for hydrology, geological , geophysical information, detail  feasibility study, HAZOP study, risk analysis for benefit cost analysis.

Mining techniques have evolved to such a level that even 100% resources can be accessed with appropriate equipment and facilities. Experienced miners always target maximum recovery and design mine to achieve that. All perceived impacts of any mining can be managed and professionally mitigated.

Bangladesh is suffering from the most severe energy crisis of its history.

Coal appears to be only viable fuel option for power generation at this stage in Bangladesh. Informed professionals wherever  should help policy makers to adopt investor friendly strategy to explore coal targeting maximum recovery with minimum impacts. Non miners must not deal with mining techniques.

A separate coal policy is not mandatory for coal mining. Existing minining act and Mine & Minerals rules are more than enough. However some essential elements as identified by NRBs may be incorporated in Mineral rules and updated. We have lost 4 years in brain storming on coal policy .As a nation we may become an object of ridicule if we fail to exploit our high quality coal with appropriate technology soon to confront energy crisis. Elected government must not hesitate to take decision .

NRBs pledged continued support to Bangladesh Energy Sector individually and as group whenever and wherever required.

Energy Bangla – Brainstroming

(dinajpurbd only disseminates  information, from what thought to be the relevant resources and do not part with the views expressed)

12.12.2009