Land ownership, environment may be big issues for open pit mining at Fulbari

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Oil, Gas, Mineral Resources, Power and Port Protection National Committee member secretary Anu Muhammad speaks at a press conference in the city Friday marking the Fulbari Day and the Coal Policy. — Focus Bangla Photo

Open pit mining at Fulbari Coal Field may be possible by any operator under the supervision of a high-power regulatory body with standard safeguards in place, reports BSS.
This is the view of German experts and shared by a section of local professionals looking for the optimum recovery of the deposit. But the environmentalist groups are equally opposed to it here on the ground of bigger challenges to land, underground water, fisheries and other ecological balances.
Many political groups and ordinary people are also skeptical about it on questions such as, at what cost and to what benefits the country should agree to open up its heart land to explorers.
They wonder what the incomes and profit sharing would be. What the Bangladesh government would receive in terms of revenue from such mining, destroying agrarian land, removing villages and digging river like open mines and lakes 200 to 300 feet deep in over 40 to 50 square mile area.
Is a six per cent royalty, besides some taxes, enough, they wondered in oblique reference to the understanding that the past government signed with the Asia Energy, now vying for the mining project.
Moreover, what will be the land ownership - to whom will it belong. Will it come back to the government and be returned to previous owners or legally pass to the operating company after the closing of the mines is yet another question.
In Germany, the land ownership passes to the operating company once the villagers are resettled following payment of compensation and other rehabilitation costs. What will it be here?
The land ownership in the mining area may become a complicated issue here at the end when the land will be reclaimed, obviously with the company money, to put back to working condition again.
These questions came up in the discussion during a field trip to two open pit coalmines in Germany last week near the city of Cologne by a group of reporters.
The Asia Energy Ltd took the group and led it to two open pit mines there owned by the Rhinish-Westfalish Energy (RWE) - a German conglomerate - operating its coal mines and generating electricity, about 33,000 MW alone using coal from its own coal fields.
RWE functionary Thomas Von Swerzenberg said open pit mining at Fulbari is possible with new technology. About the RWE, he said this company entirely belonged to German shareholders including local municipalities, banks and financial institutions.
The company has purchased the mining rights in the area from the government. It now only pays corporate taxes and other local taxes to the authorities as it runs the mining operations.
To a question, he said, there is no royalty arrangement as the company has acquired the mining rights by way of purchase. To another question, he said since it is an entirely German-owned company, all its incomes and profits are accruing to the German economy.
He said since the company pays compensation and other rehabilitation costs to villagers in the mining area and resettled them in new townships out of the area, it automatically becomes the owner of these land.
Further explaining it, Thomas said, the company reclaims the land after the mines become closed and then decides on how to put back it to normal condition. They work with the government and local authorities on how to make the area green, what sort of plants to be grown and how to protect public health and environment.
He said his company (RWE) has to work also with the Netherlands government on the mining issues. This is because, he said, the coal mines in the Cologne area fall closer to the Netherlands creating some environmental problems across the border and they have to deal with it.