'Tk 9,000cr loss if AEC extracts coal'

This was stated by Prof Anu Muhammad, a noted economist of Jahangirnagar University (JU), in a cost-benefit study on Phulbari coal mine at a seminar yesterday.

The seminar titled 'Open pit mining: Its consequences on environment and economy' was organised by Bangladesh Paribesh Andolon at the National Press Club in the city.

Prof Anu Muhammad said during 30 years of coal extraction by the AEC, the country would incur a damage of Tk 54,000 crore, while according to the calculation of the AEC, the country would receive only Tk 45,000 crore in royalty and tax.

Dr Mushfiqur Rahman of AEC however said the information that the JU professor presented in the study is not correct which is why it led to such conclusion of loss on Bangladesh's part.

But Prof Anu Muhammad said 95 percent information was gathered from the AEC documents.

The AEC has already completed the feasibility and Environment Impact Assessment (EIA) of Phulbari coal mine and is now asking the government for giving approval to open pit mining.

If approved, the company can go for coal production in 2009.

Prof Anu Muhammad said Asia Energy would make a profit of Tk 141,000 crore from the sale of 572 million tonnes of coal against an investment of Tk 79,200 crore.

The company will make yearly profit of Tk 5,000 crore while Bangladesh will count yearly loss of Tk 300 crore, he said.

Going even further the JU professor said the loss from Phulbari coal mine will be equal to total loss caused by the disasters in Tengratila and Magurchhara gas fields and Kaptai Hydroelectric Project.

"If Asia Energy gets government approval, it will leave the country with a huge amount of profit turning the green and lively Phulbari into a barren land. The fate of the people of the area will be uncertain," he added.

He also alleged that Asia energy in its first document said it will invest Tk 9250 crore, but a few days later it said it has to invest Tk 79,200 crore, which is 856 percent more from the first amount.

Prof Anu Muhammad said about 50,000 people will have to be removed from 10,000 hectares of agricultural land in Phulbari and another one lakh people will be affected, as the underground water above the coal layer will have to be pumped out causing damage to agricultural land in the area.

Mushfiqur Rahman justified the coal extraction saying that an additional 500MW electricity could be produced using the coal, which will help reduce poverty in a big way.

Besides, it would create 3000 employment opportunities in 30 years, he added.

Prof Anu Muhammad said the AEC documents did not mention how many people will lose their livelihood, rather these just showed the prospects, as the project is very profitable for them.

Prof Nazrul Islam of Dhaka University suggested the AEC to respond properly to the claims of Prof Anu Muhammad and said the government should seriously look into the issue before signing any production contract.

Earlier in another session of the seminar on the prospect of Bangladesh's energy sector and alternatives, the economists and energy experts suggested the government to prepare a comprehensive energy policy for the country, go for more exploration, develop energy technology, and extract coal to meet the extensive energy demands.

Prof Nurul Islam of Bangladesh University of Engineering and Technology, former chairman of Power Development Board Nuruddin M Kamal, Fellow of American Nuclear Society Dr Ahmed Badruzzaman, Dr Badrul Imam and Dr Mahbuba Nasrin of UD, Dr Khalequzzaman of Lock Haven University of Pennsylvania, Communist Party of Bangladesh leader Manjurul Ahsan Khan and Workers' Party leader Haider Akbar Khan Rono also spoke at the seminar moderated by Prof Wahiduddin Mahmud.