8/6/2019 __. Barapukuria Coal Mining Company Limited (BCMCL) -Activities 1

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Background:

Geological Survey of Bangladesh (GSB) discovered presence of extensive coal reserve at relatively shallow depth in April 1985 in Barapukuria under Parbatipur-Upazilla of Dinajpur. GSB undertook further investigation in 1986 and1987, involving more detailed gravimetric, magnetic and geophysical survey s to conf irm the presence of approximately 303 million tones of high quality coal in six horizons over an area of 6.68 square kilometers.Subsequently, Bangladesh oil, Gas and Mineral Corporation (Petrobangla) with the assistance of OverseasDevelopment Administration (ODA), UK concluded a deta iled Techno- economic feasibility study by engaging M/S Wardell Armstrong, UK in May 1991. The Major findings were as under

Reserve of Coal : 390 Million tonesDepth of coal : 118-509 meter.Nos. of coal layer : 6.

 Average thickness of coal Seam : 36 m (6th Seam)Composition of coal : Ash12.4%, Sulphur 0.53%, Noisture 10%Rank of coal : Bituminous (high volat ile).Calorific value of coal : 25.68 MJ/KG (11040 BTU/Ib.)

  Yearly Product ion : 1 million tones.Coal extract ion method : Multi- Slice Long wall.

During development of Barapukuria Coal Mine as well as load testing/trial run, coal as obtained from the mine, onChemical Analysis, confirmed composition of coal, Rank of coal and Calorific value of coal as predicted.

Objective:

The Mine would produce 1 million tones of coal per annum when commercial production will commence out of which

65% will be used in 250 MW coal fired power station and remaining 35% will be used in brick fields and other domesticpurposes.

Project Implementation:

M/s China National Machinery Import and Export Corporation (CMC) as lead partner of Consortium proposedsupplier’s credit for the implementation of Barapukuria Coal Mine Project. The Project Concept Paper (PCP) wasapproved by ECNEC on 11th March 1992 and Project Proforma was approve by DPEC on 21st April 1993 at a tota lestimated cost of Tk.8873.55 Million including foreign exchange component of Tk.4868.76 million .The contractbetween M/S China National Machinery Import and Export Corporation (CMC) as lead partner of Consortium andPetrobangla was signed at the total lump-sum amount of US $ 194.91 million including supplier’s credit amounting toUS$ 109.235 million on 7th February 1994. CMC commenced physical works on 1st June 1996 for the implementationof Barapukuria Coal Mine Project. As per contract the scheduled completion date was June 2001. On completion of installation works of two shafts, when development works of Pit Bottom were in progress underground mineinundated due to on rush of water. Consequently underground development works on mine was suspended for about30(thirty) months.

This was necessitated to carry out additional geological & hydro-geological investigation in order to acquire additional

date based on which CMC had to modify ear lier approved mine design/layout. The underground mine developmentworks restarted from October 2000. The PP was revised on the basis of modified mine design/layout and approved byECNEC on 15th August 2004 at the estimated cost of Tk. 14311.27 million (Equivalent to US $ 251.08 Million). Theproject was scheduled for completion by December 2004 as per revised PP. The original Contract was amended bycontract amendment keeping the original contract value unchanged with re- appropriation of item – wise costs. As perthe rev ised schedule the completion period was fixed at 20th October 2004.

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