The interim government of Bangladesh has shelved its plan to prepare a roadmap for developing the country’s coal resources, citing unresolved controversies over open-pit and underground mining methods, a top official confirmed.
“The government has taken a policy-level decision not to move forward with a coal resources development roadmap at this stage,” Md Saiful Islam, Secretary of the Energy and Mineral Resources Division, told Just Energy News.
According to the Geological Survey of Bangladesh (GSB), estimated coal reserves in four coalfields — Jamalganj, Khalaspir, Dighipara, and Barapukuria — stand at 7,231 million tonnes.
However, reserve figures for the Phulbari coalfield remain unpublished amid ongoing disputes, particularly following the 2006 protests that left at least three people dead and hundreds injured.
Earlier this year, Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan said the interim administration would prepare a coal development roadmap while leaving the final decision on mining methods to the next elected government.
Speaking at a seminar titled “The Prospects and Ways to Overcome Challenges of Coal Resources in Bangladesh,” organised by the Hydrocarbon Unit (HCU) at Bidyut Bhaban, Khan said: “We aim to prepare a roadmap for coal extraction, but the final decision rests with the next government.”
However, with the latest policy decision, that plan has been dropped.
Divided opinions on mining methods
At the same seminar, Prof. M. Shamsul Alam, Energy Adviser to the Consumers’ Association of Bangladesh (CAB), reiterated his opposition to open-pit mining in Phulbari.
He criticised the HCU’s presentation for omitting references to the 2006 protests and reminded policymakers of the government’s commitment to abandon open-pit mining under an agreement reached with protesters. “What will happen to that commitment?” he asked.
Mushfiqur Rahman, Director (Technical) at Orgenergostroy Bangladesh, the contractor for the Rooppur nuclear project, argued that mining methods must depend on geological conditions.
“Phulbari is the only coalfield where open-pit mining is feasible; underground mining there is not practical,” he said, stressing the need to safeguard groundwater and the environment.
Bangladesh has an estimated 834 million tonnes of recoverable coal, most suitable for open-pit extraction.
Economic and environmental concerns
In his keynote, Arup Kumar Biswas, Director (Exploration and Production) at HCU, said more than 8,000 megawatts of Bangladesh’s coal-fired power capacity rely almost entirely on imported coal.
“Local coal has a higher calorific value than imports, requiring 26-30% less fuel to generate the same electricity,” he said. Coal imports cost the country $1.6 billion last year, a figure projected to rise to between $3 billion and $4 billion in the coming years.
Biswas added that the Barapukuria coal mine has produced 14.94 million tonnes so far, with another 4 million tonnes expected by 2029. Beyond that, only open-pit mining could sustain production, but such a project could displace up to 20,000 villagers and require extensive rehabilitation.
According to HCU estimates, developing the Phulbari coalfield would require 54 square kilometers of land and $1 billion for rehabilitation over 10-12 years. The site holds around 475 million tonnes of recoverable coal worth $83 billion, with total development costs projected at $15 billion.
Meanwhile, the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports has renewed its call to remove Asia Energy, a subsidiary of GCM Resources and developer of the controversial Phulbari project.
GCM Resources estimates Phulbari’s reserves at 572 million tonnes. The project remains strongly opposed by local communities, including indigenous groups, since the deadly protests of August 26, 2006.
Currently, Bangladesh’s installed coal-fired power generation capacity stands at 11,677 MW, compared to a total power capacity of 26,525 MW. The vast majority of coal used for power generation is imported.