State-owned Barapukuria Coal Mine Company Limited (BCMCL) signed an agreement with USA firm John T Boyed Company and Bangladesh based Mozumder Enterprise for feasibility study for the extension of existing underground mining operation.
The study will be conducted jointly in the southern and northern part of the basin of Barapukuria Coal Mine without the interruption of present production activities.
President and CEO of John T Boyed Company John T Boyd II and Company Secretary of BCMCL Md Abul Kashem Prodhania signed the agreement on behalf of their respective companies at a signing program in Dhaka on February 16.
Bangladesh Power Development Board (BPDB) have already established a 250MW coal-based power plant beside the Barapukuria Coal Mine which is now in production. 80 per cent of the coal of this mine are used in this power plant for power generation.
Recently BPDB is started to construct another 275MW coal-based power plant beside the existing where the coal of Barapukuria Mine will be used for power generation.
Barapukuria coal mine is the country’s lone coalfield which started production from 2005. Annual production of this mine is about one million tonne.
Presently coal is being extracted from the central part of the basin beside two other parts northern and southern situated in the virgin part are waiting for extraction.
The southern part and far southern part of the lease area are potentially important for mining. As per primary report the northern part is viably possible for underground mining where the bedrock thickness is more than 80 meter above the top coal seam-6.
According to the feasibility study agreement the companies will determine the geological and hydro-geological conditions, assess the resettlement requirements and prepare the resettlement action plan, 3D seismic survey, exploration drilling, mine design and assess the project feasibility.
Also there will be detailed economic analysis and to determine if the project is economically viable or not, mining method, actual reserve, yearly production rate and mine life.
Acting Managing Director of BCMCL Engr Habib Uddin Ahmed said if the feasibility study report shows the mining of coal from both parts is economically viable then the coal will be extracted.
He also added that the companies will jointly study 4.5 square kilometers area which will end on June 2018. Total estimated cost of the study will be Tk 68.32 crore.