The company took on over 200 staff, consultants, engineers and field workers as the Definitive Feasibility Study ramped up. Strategic financial advisor Barclays Capital also began negotiations with a number of major international financial institutions.
Work over the period included resource definition drilling, geotechnical and groundwater investigation, coal quality testing, mine planning, coal processing studies, coal marketing, environmental and social impact assessments, coal transport logistics, and infrastructure.
Test results confirmed Phulbari coal varied between High Volatile A and High Volatile B Bituminous, as well as indicating both metallurgical and thermal coal products could be produced economically.
A total of four coal seams had now been identified in the Phulbari basin. Exploration drilling had previously identified two seams.
The company said early indications were the ROM coal could be processed in a dense medium plant into three products – a semi-soft coking coal, an export quality thermal coal, and a high ash domestic product. High total recovery was anticipated, with the first product comprising 25% of output, and the second around 50%.
Stringent coal handling protocols had been applied in the coal testing, including refrigerating samples for delivery to the ACIRL testing facility in Brisbane.
Environmental and social impact studies were being carried out by SMEC International, and the initial environmental examination had been delivered to the Bangladeshi Government. Once an environmental site clearance was issued, the environmental impact assessment could be lodged by mid-2005.
The development of an overall water management plan was being undertaken by Coffey Geoscientists. Field testing and modelling was being carried out by SMEC and GHD. Coal transport logistics studies were progressing.
“Great strides have been made during the period towards realising the Phulbari Project. Drilling continues to confirm the resource base and the quality of the product, in line with expectations of starting a substantial low cost coal mining operation in the Phulbari coal basin,” said ASIA Energy chairman Christopher Eager.
