Commercial production of coal starts next week

A Chinese company-- China National Machinery Import and Export Corporation (CMC)-- will produce 330 tonnes of coal every day for 71 months, according to an agreement signed with the government.

All preparations for commercial production is complete and test lifting of coal is continuing, mine authorities told this correspondent during a recent visit there.

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The coal mine at Baropukuria in Parbatipur upazila in Dinajpur district was discovered in 1985. In 1991, a British drilling company conducted a survey and estimated a deposit of about 390 million tonnes of coal spread in an area of about 6.68 square kilometers.

The ECNEC (Executive Committee of National Economic Council) approved the project in 1993.

Work on the project began in 1995 with a target to complete it by 2001. But on April 5 in 1998, a large crack developed while drilling a tunnel in the mine, allegedly due to faulty design. The underground structure was filled with water and the work was suspended.

The work resumed after about 30 months.

The drilling work was completed in May this year. The CMC has completed all underground work and installed mining equipment, the sources said.

Drilling company CMC is responsible for operation, production and management. The Bank of China has given performance guarantee in favour of CMC.

According to the agreement, the authorities will pay CMC 10 percent of total contracted money (Tk 52 crore) in advance.

A high official at the mine seeking anonymity said the production cost, by any means, would not exceed 53 dollars per tonne.

The coal is superior in quality and may be sold at a price not below 80 dollars per tonne in the international market, he claimed.

According to an official source, 65 percent of the coal extracted from the mine will be utilised by the 250 MW Thermal Power Station, which is nearing completion. The Power Development Board (PDB) will purchase the coal at 60 US dollars per tonne to produce electricity. The remaining 35 percent will be sold under open bidding.

The Baropukuria coal will play an important role in supplying electricity in the northern districts, sources said.