The Middle East conflict and the global energy crisis it has triggered have revived debate over extracting Bangladesh’s own coal to curb its reliance on imports. With the conflict dragging on, the government is examining every option for domestic coal extraction as it tries to secure energy supplies and ease the strain on the economy.
The hard part is managing the ecological risks. Open-pit mining in particular would mean resettling vast numbers of people from the mine area, and would raise complex questions about farmland, drinking water, and the wider environmental and ecological impact.
Energy experts and government officials involved say the challenge is to weigh such issues with sensitivity and technical rigour, and to find a way forward that draws on the country’s own mineral resources.
Bangladesh’s five coal mines hold reserves of about 7.8 billion tonnes. Priced at $136 a tonne, the rate now used to value Barapukuria’s coal, that is worth $1.06 trillion, or roughly BDT 130 trillion. Experts believe extracting it would expand the economy and lift GDP.
Barapukuria is currently the only one of the five mines still being worked. Rising global oil prices, a heavy import bill and the uncertainty of an import-dependent supply chain have pushed the government to plan for greater use of domestic coal. That is expected to cut the cost of fuel imports. Burning local coal in coal-fired power plants would also reduce the fuel import bill for LNG- and furnace oil-fired generation. Many countries are now prioritising coal in light of the Middle East war, and several have already raised coal-fired output.
Open-pit mining has drawn objections in Bangladesh from environmentalists and others over environmental damage, the loss of farmland and the displacement of large numbers of people.
Many mining experts counter that open-pit extraction is not unheard of in densely populated or agricultural areas. What counts, they say, is what is done before development begins: how those affected are resettled and compensated, how their futures are rebuilt and how environmental damage is tackled.
If open-pit mining goes ahead, reaching an understanding with local people will be crucial. The affected population, experts argue, must be resettled as transparently and efficiently as possible, and there must be a clear plan for managing the environmental impact.
Two experts with two decades of experience working on coal mining say that at least three things demand attention if extraction goes ahead in an area with a large population, farmland or environmental sensitivities.
The first is what they call the social network: setting out the details of the extraction plan for local people, with priority given to their involvement, the benefits they will receive and the interests of future generations. Then comes resettlement work: how those whose land the mine takes benefit from the project, whether compensation is paid properly and whether they are fully satisfied. Third is the mining work itself: how the excavation begins and how the mine is developed, with all assessments taken into account.
Should the government decide to extract local coal, the two experts say, it will need a coordinating committee that draws together policymakers, government officials, MPs, local representatives and the people affected. Before extraction begins, the government could also have a third party review the study on which the decision rests. Objections raised about earlier studies should be examined too.
According to several sources involved, the government has placed the Phulbari mine in Dinajpur on its preliminary list of priorities. Officials connected to the mine say it could yield 15 million tonnes a year if extraction begins, enough to meet 75 percent of the coal imported by the country’s thermal power plants. The studies carried out so far would have to be reviewed before any final decision.
Energy experts acknowledge the obstacles but argue the risk has to be taken, not least because global conditions have made using the country’s own coal a matter of urgency for energy security.
M Tamim, an energy expert and professor at Independent University Bangladesh, told Bonik Barta that a neutral study is needed before any final decision on extracting the country’s coal. “I believe the management of our coal extraction needs to be examined by a third party with no stake in it. If they conclude that the risk is limited and can be managed, and that there will be no problem, then we can move ahead. If they say the risk is very high, then we can abandon the idea of extracting domestic coal altogether. We can’t be afraid of engineering challenges. No big project, no mega project anywhere in the world, has been without engineering challenges.”
Officials at Barapukuria Coal Mining Company Limited and Petrobangla say the Phulbari mine covers 10,000 acres and the area is home to 40,000 people. The mine itself would need 48 square kilometres.
Each year the government imports 22 million tonnes of coal, worth an estimated $2 billion, to keep the country’s coal-fired power plants running. If extraction began, Phulbari alone could yield 15 million tonnes a year, with a further six million from Barapukuria North and three million from Dighipara: 24 million tonnes a year across the three. Once a formal decision is taken, however, it could be five to eight years before coal is actually mined, the officials said.
Bangladesh’s coal-fired capacity stands at a little over 7,000MW, and 95 percent of the coal burned in those plants is imported. Indonesia is the principal source. An earthquake or other natural disaster there could disrupt coal exports, forcing Bangladesh to buy from as far afield as Australia or South Africa to keep its plants running, leaving coal-fired generation exposed.
A presentation on the state of the country’s five mines has already been delivered at the prime minister’s office. The October 4 briefing covered Barapukuria, Phulbari and Dighipara, proposed an initiative to survey the large Jamalganj field, and directed that progress on the mines be followed up monthly.
The Middle East conflict, which has damaged energy infrastructure and halted shipping through the Strait of Hormuz and the Red Sea, has triggered a global energy crisis affecting both supply and prices. Countries that had set deadlines for cutting or ending fossil fuel use are now changing course. Italy has pushed back its coal phase-out by more than a decade, and German Chancellor Friedrich Merz proposed in March that coal-fired plants be kept running longer.
Many countries in Asia, the region hit hardest by the energy crisis, have expanded their use of coal-fired power. Neighbouring India has begun running its coal plants at full capacity. Japan has allowed less efficient coal-fired stations back into service, despite having halted loans and investment in fossil fuel infrastructure overseas. South Korea has lifted the cap on coal-fired generation and pushed back plans to shut it down, while Thailand and the Philippines have increased their coal-fired output.
“If coal has to be extracted in order to make use of local resources, then it has to be done by underground mining, and it can be limited or medium in scale,” energy expert and geologist Professor Badrul Imam told Bonik Barta. “We are talking about reducing our dependence on imported fuel, which is certainly a good thing. If the plan is to ease the pressure of imports by extracting coal, then farmland, drinking water and environmental complications have to be taken seriously. All the studies on which method of extraction is feasible in that context need to be taken into account.”
The government is “seriously considering” extracting the country’s coal, an official at the energy division told Bonik Barta on condition of anonymity. He added that a presentation was made to the prime minister covering the state of the country’s own mines, the prospects for extraction and the financial savings involved, and setting out the position on Barapukuria, Phulbari, Dighipara and Jamalganj.
Petrobangla’s chairman Md Abdul Mannan could not be reached on his mobile phone yesterday when Bonik Barta sought to establish whether the government had issued any directive on coal extraction.
Md Shoaib, Petrobangla’s director of operations and mines, told Bonik Barta: “In the current energy crisis, our own natural resources can play an important role in the country’s energy sector. Coal can be a major alternative. Countries around the world are putting greater emphasis on coal. Studies of underground coal reserves have been carried out at various times and are still underway. Petrobangla is working on other potential coal mines besides Barapukuria.”