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Phulbari Coal Mining Infrastructure Contract
Phulbari Coal Mining Infrastructure Contract.
About this update from Gcm Resources Plc
[{"type":"text","content":"\n\n11 March 2024\n \nGCM Resources plc\n(\"GCM\" or the \"Company\")\n(AIM:GCM) \n \n \nPhulbari Coal Mining Infrastructure Construction and Overburden Stripping Contract\n \nThe Company advises that working under the coal mine development MOU with Power Construction Corporation of China, Ltd. (\"PowerChina\") (refer to RNS of 28 November 2023), it has signed a contract with PowerChina International Group Limited covering mine development works of approximately US$1 billion necessary to facilitate coal extraction at the Phulbari Coal and Power Project (\"the Project\"). The advancement of this Contract is subject to receiving the approval of the Scheme of Development for coal mining submitted to the Bangladesh Government under the terms and conditions of its Contract for \"Exploration and Mining Coal in Northern Bangladesh\".\n \nThe scope of works under this Mine Construction Contract includes design, procurement, installation, construction 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. These co-products are expected to deliver considerable cashflow for the Project ahead of any coal extraction.\n \nThe Mine Construction Contract duration is four years, with overburden removal to expose first coal taking some two years. The Company and PowerChina expect to enter additional contracts covering coal extraction and associated activities to support ongoing open pit mining operations and the Project's commitment to deliver high quality coal supporting at least 6,600MW power generation for over 30 years. A joint proposal with development partner, PowerChina, will shortly be presented to the newly elected Bangladesh Government.\n \nThe Mine Construction Contract was entered into on 9 March 2024, however, issuance of a Notice to Proceed with the works is dependent on the Company receiving the necessary approvals from the Bangladesh Government and achieving financial closure. As noted in the beforementioned RNS of 28 November 2023, our development partner, PowerChina is committed to assist with project financing.\n \nCoal Supply Expressions of Interest: \nThe Company has received Expressions of Interest to purchas...