Urgent need for domestic coal development

Energy sector experts reiterated the need for urgent decision of the government for utilising domestic coal resources at a seminar held in Dhaka. Policy makers, relevant government department officials, academia and researchers gathered on February 27, 2025 at the seminar titled 'Prospects and ways to overcome challenges of coal resources in Bangladesh.' The seminar was organised by the Hydrocarbon Unit (HCU) under the Ministry of Power, Energy and Mineral Resources at the Biddyut Bhaban, Dhaka. Energy Secretary Mr. Saiful Islam chaired the seminar.

Dr. Arup Kumar Biswas, Director, HCU  and Mr. Saiful Islam Sarker, Managing Director, Barapukuria Coal Mining Company Ltd. (BCMCL) made keynote presentations on the  coal fields and their resource status in the country as well as the experience of mining coal from Barapukuria underground coal mine. Sector specialists and researchers participated in discussions at the seminar.

It was reported that Bangladesh had so far discovered five major coal fields in the northern districts (Jamalganj, Barapukuria, Khalashpir, Dighipara and Phulbari coal fields). These coal fields have approximately 7,823 million tons of coal. The coal fields have been studied for suitable mining options and their impacts involving various local and international organisations. Available information suggests that Barapukuria and Phulbari fields have been studied intensively for mining and further development. HCU informed that 834 million ton coal could be mined at this stage mainly from Phulbari and Barapukuria coal fields using open cut mining method. BCMCL, a subsidiary company of Petrobangla has been operating a small underground coalmine since 2005 at Barapukuria, Dinajpur. So far, Barapukuria mined approximately 15 million ton of coal from the mine. The coal has been supplied to the mine mouth 525 MW coal fired power plant for generating electric energy (the power plant requires approximately 5,000 ton of coal per day for optimally operating the power plant. But the mine in operation could not supply the required amount of coal due to its limited production capacity). BCMCL needs urgent government decision for expanding its mine operations and mine life. The present mine operation and management contract of the BCMCL with the Chinese Contractor 'XMC-CMC Consortium' remains valid until 2027 for underground mine operations. The Barapukuria coal field (covering an area of 6.68 km2) has a proven reserve of 410 million ton coal within the depths 118-509 meters (mining activities have been limited within the 'central part' of the coal field having 170 million ton reserve). BCMCL has engaged several international consultants to determine mine life extension, improved coal recovery and for safe and efficient coal production options. Managing Director, BCMCL informed the seminar that the 'northern and southern' parts of the Barapukuria coal field could be mined economically only with open cut mine because of the geological, technological and environmental limitations. BCMCL has detailed out its open pit mining technology options, land, water management and resettlement programmes for the mine-affected people. The company believes that open cut mine will allow 90 per cent coal recovery (at a rate of 6 million ton coal production annually from the mine for 30 years of mine life). The mine can secure extraction of premium quality coal that is worth of 30 billion US dollars (at present market value) within its operation life.

HCU informed that the Phulbari coal field had a proven reserve of 572 million ton coal at a depth varying from 150-270 meters below the surface. The deposit is suitable for an open cut mine and can optimally produce 475 million tons of coal (if mined efficiently, Phulbari alone can supply 15 million tons premium coal annually. Phulbari grade 12 million ton of coal will suffice to generate approximately 5,300 MW of power annually). It was reported that the open pit mine initially started with developing a box cut (2 km x 1.5 km  area) and the coal would be produced within 2-3 years from the commencement of mine operation. From the 'box cut' the mine gradually moves  towards the designed direction at a rate of 200 meters annually.

 BCMCL engineers believe that the Barapukuria-Phulbari are adjacent coal fields and if properly planned, one 'box cut' can be developed at the southern part of Barapukuria coal field for developing both the fields. The 'box cut' can optimally be used for expanding the mine towards north for Barapukuria coal deposit and with some can be expanded towards the south for extracting coal from the Phulbari basin. The coal basin represents a world class size of mine and the quality of coal may attract investors (provided the government decides for open cut mining) as a techno-economically feasible option. The government needs to create an enabling environment for mine development investment with appropriate regulatory set up for securing safe mine operation and environmental and social care. A profitable optimum size mine can generate necessary revenue sufficient for supporting several billion dollars worth of investment, safe mine operations, and environment and social care.

HCU further informed that the requirement for supplying coal for power generation has been steadily increasing in the country. Already there are installed coal based power plants in the country with more than 8,000 MW capacity. To operate the power plants, approximately 22 million ton coal (Phulbari-Barapukuria grade coal) is required annually. At the existing coal price at the international market, importing the required volume of coal will involve around US $ 4 billion.  Bangladesh has been suffering from foreign currency deficit. The installed coal fired power plants' capacity has been partially used for power generation due to the coal supply shortages. These coal-fired power plants have been installed in the country with the hope that uninterrupted coal supply would be secured to operate the plants as 'base load power plants'. The coal fired plants have been installed for comparatively cheaper electric energy supply. Unfortunately, the expectation, so far, has remained unrealised.  On the other hand, the debt burden for the power plant installation and for keeping them idle complicated the situations. Consumers pay more power tariff and government subsidy burdens continue to rise. Energy Secretary Mr. Saiful Islam informed the seminar that 'at times, we have struggled to pay coal import bills due to the foreign currency crisis'. HCU and BCMCL recommended for early decision of the government for developing Phulbari-Barapukuria coal mines. Energy Secretary said 'we must decide whether to use our own coal for power generation.' Energy Adviser Dr. Fauzul Kabir was the chief guest at the seminar and he said that the government was preparing a roadmap for the next political administration to help determine whether to proceed with coal extraction in the country.

Mushfiqur Rahman is a mining engineer. He writes on energy and environment issues. [email protected]