GCM Resources signs MOU with China Gezhouba Group International Engineering for power project
- GCM Resources plc
- Clifford Chance
- China Gezhouba Group Company Limited
GCM Resources, a London based resource exploration and development company, has announced that a memorandum of understanding (MOU) has been agreed with China Gezhouba Group International Engineering Co. Ltd (CGGCINTL).
The MOU provides for parties to engage and mutually investigate the feasibility of a joint venture with respect to the development of mine-mouth coal fired power plants generating up to 2,000 MW in total at the Phulbari Coal and Power Project site (Bangladesh).
Asia Energy Corporation (Bangladesh) Pty Limited, GCM’s wholly owned subsidiary, entered into a contract with the Government of Bangladesh in February 1998, giving it the right to explore and mine coal in Northern Bangladesh. GCM Resources identified a world class coal resource of 572 million tonnes near the town of Phulbari.
The project will contribute in excess of one per cent of the country's GDP each year throughout its 30 year life
CGGCINTL is a subsidiary of China Gezhouba Group Corporation (CGGC), which in turn is a core member of China Energy Engineering Group Co., Ltd., a super central state-owned enterprise of the People's Republic of China. CGGC's businesses cover the design, construction, investment and operation in power, water conservancy, highways, railways, bridges, municipal works, airports, ports, waterways, industrial and civil buildings, as well as real estate and coal mining amongst others.
The Executive Chairman of GCM, Datuk Michael Tang, stated:
"We are delighted to have established this relationship with China Gezhouba Group International Engineering Co. Ltd, one of the largest and most respected engineering companies in the region and look forward to working with them for the mutual benefit of both parties."