It’s taken it’s time has this one and investors have had to ride out months if not one or two years of uncertainty relating to the Phulbari coal mine in North West Bangladesh. Approval for the world-class coal resource of 572 million tonnes looks as though it has finally entered the last phase of internal Bangladeshi government squabbling. I have spoken to many here over the last 6/9 months as the market zeroed in on each and every rumour. There’s no doubt that GCM will get the approval (That’s a given in the city the question is when? Hence every week that goes by without approval leads to market watchers becoming numb with boredom which in turn helps to dissipate interest. Investors end up becoming frustrated with the wait, then seek their riches elsewhere thus the sp becomes lower and lower over time) what’s been holding up the horse and cart here has been internal bickering within the Bangladeshi Parliament both National and local objectors have raised concerns over the environmental impact of the project on the environment and local communities. OPEN-CAST “Mining operations can have a significant effect on the environment and communities in which they take place and managing these impacts is of critical importance to the long-term success of any mining project. The potential impacts of the Project have been extensively studied and subject to external review. One of the Project’s most significant impacts is the proposed resettlement, over a 10 year period, of approximately 40,000 people. As part of the resettlement plan, GCM will be constructing a new western extension to the Phulbari Township as well as a number of new resettlement villages in the surrounding area. The new resettlement sites will have improved services and infrastructure including electricity, the provision of sanitation and reticulated water supply and storm-water drainage. New schools, religious centres and medical centres will also be built.
The Project’s environmental and social impacts, including the resettlement programme, will comply with the Equator Principles, an internationally recognised set of benchmarks for managing the impacts of large projects. One key component of these principles is the commitment that no one will be worse off and each person adversely affected will be fairly and fully compensated for all loss of land, property, and livelihood.” The last line high-lighted has been generally accepted by all concerned as the sticking point for approval.
But wait and watch closely as last weeks timely RNS concerning the Polo Resource GCM interest, which stands at approx 30%. RUMOURS of Polo in discussions with major league industry big hitters regarding the WHOLE GCM Project are on the horizon. So what’s brought this on? Apparently Polo have decided enough is enough the inertia has to be broken! GCM’s people in Bangladesh might as well be on the moon for all the good they’re doing. Polo are now determined to drive the project onwards. Polo believe that their holding in GCM is significantly being devalued by the lack of action/inertia. GCM could hit 500/600p on any given day when final approval comes. The market is sick of the waiting, Investors are sick of the waiting and now Polo have gotten sick of waiting. The difference with Polo is that they’re determined to bring about drastic change. “Polo remains convinced of the significant value/potential in GCM and will seek to unlock such value over and above that currently being assigned to GCM by the stock market.”
It’s game on here as the city/market now once again begin to turn and focus on GCM. Rises aplenty here over the next few weeks/months as the last push before approval gets underway. There’s some thing afoot. Watch-list!