Asia Energy said it would invest $US2 billion in the Phulbari coal mine, to be located in the north-west of the country.

The company presented a joint feasibility study and proposal to develop the mine to the Bangladesh Government on Sunday, Associated Press reported.

Asia Energy earlier this year estimated deposits of 572 million tonnes at the Phulbari site, with a mine life of 30 years.

For the mine to go ahead Asia Energy will need to relocate 40,000 people. The company addressed how it would resettle and compensate land owners in its Environmental Impact Statement submitted in August.

Company chief executive Gary Lye told reporters those people would be “fully and fairy compensated for all loss of land, homes and businesses”