Prefeasibility Assessment for Further Power Plants

RNS Number : 4163G

GCM Resources PLC

06 November 2018

 

6^th November 2018

GCM Resources plc

("GCM" or the "Company")

(AIM:GCM) 

Delivery of Prefeasibility Assessment Report for
Further Mine-Mouth Power Plants

Further to the announcement on 11 September 2018, GCM Resources plc ("GCM" or the "Company"), an AIM quoted mining and energy company, is pleased to advise that it has received a "Power Plant Prefeasibility Assessment Report" ("PFS") from Power Construction China Corporation of China Ltd ("POWERCHINA"), the parent company of Sinohydro Corporation Limited.

The PFS considers the technical aspects of developing 4,000MW of power generating capacity to be implemented in two stages (each stage consisting of two 1,000MW units) at the Phulbari coal mine site.   These power plants are in addition to the existing 2,000MW power plant proposal with China Gezhouba Group International Engineering Co Ltd ("CGGC") which GCM reported in its announcement on 14 July 2017. All power plants are planned to be commissioned in line with the coal mine's ramp up to full production.

The POWERCHINA report confirms that by utilising the latest highly energy efficient Ultra-Super Critical power plant design, 6,000MW can be generated from the mine's thermal coal production.  This is a value-adding step for the Phulbari Coal and Power Project and potentially provides a complete market for the planned 12 million tonnes per annum of thermal coal production. 

In the preparation of the PFS, GCM's Bangladesh-based personnel organised for a large team of technical experts from POWERCHINA to visit the proposed site of the Phulbari Coal and Power Project.  GCM's personnel worked closely with the POWERCHINA team, contributing its technical skills, experience, and local knowledge to help streamline the study and other necessary due diligence.     

POWERCHINA is a State-owned Key Enterprise of People's Republic of China, and is a world-leading integrated engineering construction group. In 2018, POWERCHINA ranked 182nd among Fortune Global 500, 41st among Top 500 Enterprises of China, came 6th in the list of the world's 250 largest global contractors and placed 2nd among top 150 engineering design companies worldwide according to Engineering News-Report.

POWERCHINA and the Company are currently in discussions to further progress the relationship.

The Executive Chairman of GCM, Datuk Michael Tang PJN, stated:

 "This is a significant step for the Phulbari Coal and Power Project as it confirms that technically the Project is able to support 6,000MW of power generation. Subject to satisfactory negotiations, we aim to extend the arrangement with POWERCHINA and then for more detailed feasibility studies to be completed on the proposed mine mouth power plants, which we anticipate will provide energy at the lowest-cost in Bangladesh.

"We are confident that with the support of such high calibre development partners the Phulbari Coal and Power Project will deliver substantial benefits for the Government, the people of Bangladesh and our shareholders."    

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

For further information:

GCM Resources plc James Hobson Finance Director  [phone]	Northland Capital Partners Ltd Nominated Adviser and Broker Matthew Johnson, Jamie Spotswood [phone]
GCM Resources plc
Tel: [phone]
[e-mail]; www.gcmplc.com

About GCM Resources

GCM Resources plc (LON:GCM), the AIM listed mining and energy company, has identified a high quality coal resource of 572 million tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project (the Project) in north-west Bangladesh.

Utilising the latest highly energy efficient power generating technology the Phulbari coal mine is capable of supporting power plants of up to 6,000MW. GCM is awaiting approval from the Government of Bangladesh to develop the Project. The Company has a strategy of combining the Company's mine proposal with up to 6,000MW of power generation, together with credible, internationally recognised strategic partners. GCM aims to deliver a practical power solution to provide the cheapest electricity in the country, in a manner amenable to the Government of Bangladesh.

 

END

 

 

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