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Coal policy

Tuesday, 23 October 2007


GOVERNMENT now is engaged in framing a coal policy. The draft policy thereof is available which has kept the options open for foreign investment in the sector, export of coal and open pit mining. Opinions were invited on the draft. The concerned circles have already done this year. But if opinions, specially from the experts are not heeded, then it would be an useless exercise. Bangladesh Economic Association (BEA) and another organisation devoted to protecting the national economic resources, organised recently a view exchange meeting at the National Press Club recently. The experts who attended the meeting were all opposed to export of coal, against open pit mining and against large scale foreign investments in the sector that would only create grounds for the former methods of coal reserves exploitation and disposal.
Notably, a lobbying effort is on by foreign investors to win over Bangladeshi authorities to the ideas of coal export and its open pit extraction. The case of Germany is cited here to demonstrate the success of open pit mining. But the ones who participated in the Press Club seminar underlined that the case of Germany and Bangladesh is not the same. The population pictures of the two countries are very different. Few people were displaced by open pit mining in Germany where the population size and density is far less than Bangladesh. The experts are also against exports because there are not enough reserves of the same considering the country's rapidly growing energy demand and fast depleting energy resources, to make coal export a sensible exercise without endangering the country energy security even in the medium term. They cited the example of India where there are many coal mines which are very largely operated by the government leaving a few to foreign operators, for this same reason of energy security.
The open-pit method of coal extraction is preferred by businesses, specially by foreign investors, who stand to benefit from such operation as that would enable maximum extraction of the coal to suit their commercial interests. Those who oppose this method say that open-pit extraction can invite a great curse on the local environment -- on surrounding people, lands and flora and fauna. They advocate for the environmentally safe method of underground mining where coal would be extracted partially but safely in respect of the environment. Indeed, there was noted intense resistance by local people to the open-pit mining method at Phulbari. Then the potential foreign investors in this project had to give up plans as it became known credibly, or otherwise, that they would opt for the open-pit method on getting the contract.
Thus, it is apparent that the method of extraction of coal needs to be sorted out urgently and preliminarily before full fledged work starts for drawing up and subsequently implementing the coal policy which is on the anvil. Government should make the selection of the method a transparent one after inviting experts on the different sides to give their opinion. It must be seen as considering these expert proposals without a bias and accepting the ones with the greatest merits.

Aftab Ahmed
Pahartali, Chittagong