Asia Energy was admitted to trading on the Alternative Investment Market of the London Stock Exchange in April 2004. The mining group reported a loss of almost £500,000 for the year ended June 2004.
The company raised raised £14 million when it listed on AIM and is using the capital to develop the Phulbari Coal Project into a world-class export quality coal mine and to conduct a separate feasibility on a possible mine mouth power plant.
“Two reports prepared by independent coal mining specialists, MineConsult and GHD, have, meanwhile, confirmed Phulbari’s outstanding economic potential,” Asia Energy said.
Based on an annual production of 15 million tonnes of coal, the cash flow analyses in their reports indicated an average ungeared post-tax Project Net Present Value of US$2.3 billion using a discount rate of 10% and an average Internal Rate of Return of 50%. The same specialists estimated start-up costs to year two at US$530 million.
Phulbari’s High Volatile A and B Bituminous coal is a low ash, low sulphur product, highly suitable for export markets and power generation. The company said it had already received a number of approaches from major coal consumers in Asia.
“We maintain excellent relations with the Government of Bangladesh, where the Project enjoys broad support,” said chairman Christopher Eager.
“We plan to build the mine at Phulbari in full and open consultation with the community and all stakeholders, benchmarking it according to the highest standards set by the Bangladeshi authorities, international development agencies and NGOs. It is our goal that in every way possible it will be both geared to sustainable development and sensitively attuned to the environment.”
