GCM Resources lands second JV with PowerChina
GCM Resources agreed a second joint venture agreement with Power Construction Corporation of China (PowerChina) for the development of an additional coal-fired power plant at the site of the company's proposed coal mine in North-West Bangladesh.
This second JV agreement for an additional 2×1,000MW plant is in addition to an agreement for an initial plant that was signed in January and will entitle the AIM traded company to an 80% interest in the additional plant, with PowerChina receiving the remaining 20%.
Datuk Michael Tang, executive chairman of GCM, said: "I am delighted that the second the JV agreement has now been completed and would like to express my sincere gratitude to the PowerChina team for their support and demonstration of commitment to the company's integrated mine and power plant project. By finalising this second JV agreement, we are now at a stage where partners have been found for all of the proposed power plants of 6,000MW in total."
Tang added that he anticipated that the proposals for the plant will shortly be submitted to the Bangladeshi government.
Both parties will assist in obtaining financing, while GCM will be responsible for obtaining the necessary government approvals and facilitate preparation of the environmental impact assessment.
Meanwhile, PowerChina will be responsible for conducting a feasibility study and facilitate the inclusion of the project as part of the Chinese government's controversial 'One Belt, One Road' initiative, which aims to bolster Chinese international trade links through investment in foreign projects involved in areas such as infrastructure, science and education.
Mr. Pan Dengyu, vice president of PowerChina Eurasia, said: "PowerChina is delighted to have signed the second JV agreement and look forward to assisting GCM in delivering the integrated mine and power plant that is beneficial and acceptable to the Government of Bangladesh."
GCM Resources' shares were up 14.29% at 28.00p at 1241 GMT.