Business
MOU Extension – Phulbari Coal Mine Development
GCM Resources plc has announced an extension of its memorandum of understanding with Power Construction Corporation of China, Ltd. for an additional 24 months, through December 6, 2027, to further develop the Phulbari coal mine. This extension builds upon the previously signed EPC contract for mine infrastructure and overburden stripping, which includes the potential for significant cashflow from industrial co-products. The parties aim to finalize remaining work packages and explore PowerChina's involvement in financing and other necessary development aspects, with the goal of reducing technical risk and capital expenditure through contract mining. Disclaimer*
About this update from Gcm Resources Plc
[{"type":"text","content":"\n\nThe information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation.\n \n29 December 2025\n \nGCM Resources plc\n(\"GCM\" or the \"Company\")\n \nMOU Extension - Phulbari Coal Mine Development\n \nGCM Resources plc (AIM: GCM), the AIM traded mining and energy company, announces that Power Construction Corporation of China, Ltd. (\"PowerChina\") has agreed to an extension of the memorandum of understanding (\"MoU\") for a period of a further 24 months from 6 December 2025 to 6 December 2027 on the same terms as the previous memorandum of understanding which is primarily focused on the Phulbari coal mine development.\n \nIt is acknowledged that working under the MOU, the parties have already taken a significant step towards developing the Phulbari coal mine. This is demonstrated by the signing of an EPC contract for \"Phulbari Coal Mining Infrastructure Construction and Overburden Stripping\", which was announced by the Company on 11 March 2024. The scope of work under this contract includes the design, procurement, installation and commissioning of mine infrastructure and overburden removal, dewatering and drainage. It also includes selective mining and stockpiling of valuable industrial mineral co-products that occur in the overburden and are expected to deliver considerable cashflow for the Project ahead of any coal extraction. Importantly, the proposed mine development is now heading in the direction of contract mining which means that the mining is carried out by an experienced mining contractor utilising their own resources and mining equipment resulting in reduced technical risk and start-up capital expenditure requirement.\n \nWorking under this extended MOU, GCM and PowerChina aim to determine the modality for PowerChina to become involved in other packages of work and financing that are necessary to fully develop the Phulbari coal mine. PowerChina's involvement as a Mine Development Partner remains subject to the approval of PowerChina internal compliance and all other relevant regulatory agencies.\n \nMichael Tang, Chief Executive of GCM, commented: \"Working under the MOU, GCM and PowerChina will have the opportunity to finalise the remaining work packages necessary to bring the Phulbari c...