GCM Resources buoyed by study results at Bangladesh project

GCM Resources’ shares were boosted on Tuesday after a prefeasibility study confirmed 6,000 megawatts can be generated at its planned mine-mouth coal-fired power plants in Bangladesh.

The Phulbari coal & power project can achieve the landmark with its thermal coal production if using a "highly energy efficient plant design" according to the report, which was conducted by Power Construction China Corporation (PowerChina).

Datuk Michael Tang, executive chairman of GCM, said: "This is a significant step for the Phulbari Coal and power project as it confirms that technically the project is able to support 6,000MW of power generation. Subject to satisfactory negotiations, we aim to extend the arrangement with PowerChina and then for more detailed feasibility studies to be completed on the proposed mine mouth power plants, which we anticipate will provide energy at the lowest-cost in Bangladesh."

The study focused on the technical aspects of developing 4,000MW of power generating capacity at the site in addition to an existing proposal for a 2,000MW plant with China Gezhouba Group which the group announced in July 2017.

The AIM traded company said the new report potentially provides a complete market for the planned 12m tonnes per annum of thermal coal production and that it intends to work further with PowerChina.

"We are confident that with the support of such high calibre development partners the Phulbari Coal and power project will deliver substantial benefits for the government, the people of Bangladesh and our shareholders," said Tang.

GCM Resources’ shares were up 5.04% at 15.63p at 1604 GMT.