Coal is an important power source in Bangladesh, and its use has been increasing in recent years. Experts emphasised at a seminar organized recently by the Ministry of Energy that Bangladesh must make urgent decisions regarding the extraction of its vast coal reserves to reduce dependence on costly Energy imports and preserve hard-earned foreign currency.

Despite the establishment of 8,000 megawatts of coal-based power plants, operational facilities are struggling to run at full capacity due to insufficient coal supply. As a result, the country is spending a significant amount of foreign currency on coal imports. In this situation, experts argue that tapping into the country’s 7,823 million tons of coal reserves is a national imperative.

The southern part of the government-owned Barapukuria coal mine and the proposed Phulbari coal project have completed all necessary surveys and are ready for mining activities, participants noted.

Addressing the seminar, Fawzul Kabir Khan, Advisor to the Ministry of Energy and Mineral Resources, described the event as a “fruitful academic exercise.” He stated, “The coal debate boils down to a few key questions: Should we extract coal? If so, should we opt for open-pit or underground mining? How should we select mining companies, and should we rely on existing studies or conduct fresh research?”

Energy Secretary Mohammad Saiful Islam stressed the urgency of the matter, saying, “We have numerous coal-based power plants, yet we are struggling to afford imported coal. It is time to decide how best to utilize our resources. This seminar is part of a broader discussion to formulate a strategic roadmap for coal extraction and national energy security.”

Recently, a seminar titled "Prospects and Challenges of Bangladesh's Coal Resources and Measures to Overcome " was organized at the Biddut Bhavan Auditorium.

The Hydrocarbon Unit organized it on behalf of the Ministry of Energy & Mineral Resources. The keynote paper was presented by Dr. Arup Kumar Biswas, Director of the Hydrocarbon Unit. The seminar was chaired by Energy Secretary Mohammad Saiful Alam, with Energy Advisor Fawzul Kabir Khan as the chief guest.

The welcome speech was given by Md. Shamim Khan, Director General of the Hydrocarbon Unit. Participants in the discussion were Dr. Ijaz Hossain, Dr. Mushfiqur Rahman, Dr. Samsul Alam, Professor Dr. Kazi Matiur Rahman, Dr. Nehal Uddin, Dr. Yunus Akon, Mollah Amjad Hossain, Professor Anwar Hossain Bhuiyan, Professor Shafique and others.

 

In the keynote presentation on global coal trends, it was mentioned that China's coal demand in 2023 is approximately 5 billion tons. The top producers, China, India, and Indonesia, have set new production records. India accounts for 15% of global coal demand, with a 9.9% increase in usage compared to the previous year. India and China together consume 71% of the world's coal.

Regarding the role of coal in the country's energy sector, the presentation stated that the demand for coal is rapidly increasing. The country's coal-based power generation capacity is 8,247 megawatts. Additionally, coal is needed for brick kilns and other purposes. As a result, the annual coal demand will be approximately 28-30 million tons. The annual coal import cost will be around 3-4 billion US dollars. In the last fiscal year, the government spent approximately 1.6 billion dollars on coal-based power generation.

Currently, about 66% of the fuel used in the country is imported. Therefore, the increasing coal imports will further increase the country's energy import dependence, putting pressure on foreign exchange reserves. It is now the right time to take effective measures by evaluating Bangladesh's coal mining technology and extraction management.

Regarding coal reserves, keynote speaker Dr. Arup Kumar Biswas said that the estimated total reserves in the country's five coal fields are 7,823 million tons. However, not all of it is extractable. The amount of extractable reserves depends on the extraction method. The estimated extractable reserves of domestic coal are 834 million tons.

Regarding the quality of domestic coal, the paper mentioned that imported coal is generally of poor-grade lignite. The sulfur and trace element concentrations in imported coal exceed the permissible limits for the environment, posing significant environmental and public health risks. Using domestic coal for the same amount of power generation would require approximately 26%-30% less coal than imported coal.

Currently, about 66% of the fuel used in the country is imported. Therefore, the increasing coal imports will further increase the country's energy import dependence, putting pressure on foreign exchange reserves. It is now the right time to take effective measures by evaluating Bangladesh's coal mining technology and extraction management.

Comparing coal extraction methods, Dr. Arup Kumar Biswas said that open-pit mining has relatively lower production costs; more than 90% of the coal can be extracted; health and safety risks are minimal; there is an opportunity to extract valuable co-products from the overlying layer of coal; land use is relatively higher; and the mine construction period is 2-3 years. Approximately 53% of the world's coal and about 96% of India's coal are extracted through open-pit mining.

On the other hand, underground mining has relatively higher production costs, and only 10-15% of the coal can be extracted; health and safety risks are high; there is a risk of mine flooding due to the Upper DupiTila Aquifer overlying the coal; mining complexity arises in very thick coal seams; there is a risk of land subsidence; land use is relatively lower; and the mine construction period is 8-10 years.

Based on the experience of Barapukuria, the challenges of underground mining in the country have been identified. Similar challenges have been mentioned in the Dighipara mine plan. The Phulbari mine plan highlights the rationale for choosing the open-pit method and the limitations of the underground method.

Regarding the challenges of extraction, Dr. Arup Kumar Biswas mentioned that various problems, including mine safety, health risks, underground water management, and air circulation, need to be addressed continuously. Additionally, land subsidence has occurred in the mining area due to coal extraction, resulting in the permanent loss of arable land and resources.

The experience of the Barapukuria coal mine indicates that underground coal extraction is not profitable for Bangladesh. Therefore, special importance should be given to maximizing the production of mineable resources and ensuring economic profitability in coal extraction. To ensure the benefits of open-pit mine development, measures must be taken before mining to minimize the use of agricultural land, conserve ecosystems and biodiversity, and ensure proper rehabilitation and compensation for affected communities.

Emphasizing the need for planning and management for the development of Bangladesh's coal resources, the keynote speaker said that proper management plans for the regional groundwater aquifer (Dupi Tila), solutions to the disasters caused by land subsidence due to underground coal extraction, and management measures such as backfilling and rehabilitation after open-pit coal extraction must be in place.

Technical information about the Phulbari coal project proposed by Asia Energy was presented at the seminar. It was mentioned that Asia Energy completed a detailed survey (including environmental and social surveys) over two years and submitted the mine development plan to the government in 2005. A total of 124 drillings were conducted in Phulbari, three of which were within the Barapukuria lease area.

The experience of the Barapukuria coal mine indicates that underground coal extraction is not profitable for Bangladesh. Therefore, special importance should be given to maximizing the production of mineable resources and ensuring economic profitability in coal extraction

Of the five coal seams, the two main seams, Upper Seam and Main Seam, located at similar depths, contain about 90% of the total resources. Reviewing the lithology of the Phulbari area, it was found that the main water-bearing layer is adjacent to the coal seams in various places. If cracks occur in the overlying layer during underground mining, the entire mine area could be flooded. Therefore, underground mining is not feasible in Phulbari. There is no alternative to open-pit mining for coal extraction here.

Regarding the Phulbari mine plan, it was mentioned that mining activities would start with an initial box cut in the northwestern part of the coal field (at the Phulbari-Barapukuria lease boundary). The first coal will be obtained within an estimated 2-3 years of starting mining activities. The mine will progress step by step from north to south at an estimated rate of 200 meters per year. The maximum depth of the mine will be 330 meters. Land use in the mine will be sequential.

After extracting coal in each phase, the mine pit will be filled and rehabilitated for productive use. Geologically, Barapukuria and Phulbari are considered parts of the same reserve, and due to the shallow depth of coal in both mines, underground mining is not feasible. Open-pit mining is the only solution, and it will significantly increase the recovery rate. In this context, the possibility of joint mine development in the shallow southern part of the Barapukuria coal field through open-pit mining can be reviewed. As a result, a significant portion of the coal needed for Bangladesh's fossil fuel era can be supplied from one region.

Dr. Mushfiqur Rahman, Mining Engineer

For the first time, we are witnessing a serious forum involving academia and administration to explore the utilization of coal resources and the paths to overcome challenges and gain experience. In the past 30 years, I have not seen such an initiative. Often, the discussions have been populist remarks and irrelevant dialogues. Those who have participated in the past have often engaged in inexperienced discussions.

Today's topic indicates that our primary energy is import-dependent. Approximately 40% to 50% of our energy demand relies on imports, and this dependency is continuously increasing.

Currently, we have a proven and extractable gas reserve of 8 trillion cubic feet. We use one TCF per year, and if no new gas is discovered, the reserves will not last more than 7 to 8 years. Even if new gas is discovered, there is no guarantee that it can be added and made usable overnight. Consequently, we are rapidly transforming into a country reliant on imported energy due to our ongoing primary energy policy. Those involved understand well the implications this could have on energy security and our national economy.

As you all know, we have already installed 8,000 megawatts of coal-fired power plants in the country. This has involved the importation of 13 million tons of coal, and 0.7 million tons have been extracted from Barapukuria. Despite using 14 to 15 million tons of coal already, we are unable to run the coal-fired power plants at full capacity due to technical limitations and primary energy shortages. Running at full installed capacity would require 20 to 24 million tons of coal annually. This context has brought forth the challenge of meeting a $4 billion import expenditure. Therefore, this discussion is crucial.

According to the 1994 agreement, 15 million tons of coal have been extracted from the Barapukuria coal mine from 2005 to 2025. When this project proposal was approved by the National Economic Council, I clearly remember it was stated that this mine would last 64 years, with an extraction of 64 million tons of coal. The coal price was projected to be $33 per ton. Currently, the production cost in Barapukuria has reached $176 per ton. The mine has a reserve of 410 million tons of coal.

As we have considered only about half of the area for extraction, going beyond this is technically unfeasible. Therefore, even if we want to extract coal from Barapukuria, the shallow reserves to the south must be mined using open-pit methods. The decision regarding the mining method is entirely technical, not a matter of imposition. It is controlled by geology and existing technology, not by personal decisions. Whether to mine or not is a separate discussion, but if we are to mine, technology, geology, and technical capability will dictate the method to be used.

Every hazard listed in mining engineering textbooks for underground mining is present in Barapukuria. Issues such as flooding, gas, subsidence, humidity, and dust are prevalent. There has been subsidence over an area of 685 hectares. As a result, Barapukuria is constantly facing challenges in mining. The coal basins in Bangladesh are such that mining will have to confront these challenges.

Discussions regarding our need for coal extraction should consider technical and financial aspects. It must be factored in that so far, only full and comprehensive studies have been conducted for Phulbari and Barapukuria in terms of creating mining schemes, resettlement plans for affected individuals, environmental hazard management, and addressing potential impacts on water resources. Other studies are at preliminary stages. For the implementation of other basins, more time will be needed for studies.

Another point I want to highlight is that no matter which mining method is used, it must be technically and economically sustainable. A mine that is not economically viable cannot generate adequate funds for environmental safety, hazard and impact management, and the resettlement of affected individuals. The footprints left by such mines lead to various harmful social issues.

Thus, public perception regarding mines can be influenced by numerous fears. Additionally, if a profitable mining project cannot create a suitable fund for mine closure, it will fail to address mine closure properly as it will not have revenue at that time, leading to environmental and social problems. These aspects should be taken into account for mining.

Prof Samsul Alam, Energy Advisor, CAB

The opposition to open-pit mining in the past did not arise from misunderstandings. Therefore, mentioning those issues as challenges without a comparative analysis makes it impossible for the government to make decisions. The coal price at Barapukuria has reached $176 per ton, and it must be investigated why. A portion of that coal has been sold on the black market, involving MPs and related officials.

We have submitted a report to the energy department regarding this, but it remains unopened. Ignoring these considerations, raising prospects and challenges can mislead people. Those who say this have a lack of knowledge and understanding.

Dr. Samsul Alam started giving negative comments about coal extraction, prompting the Energy advisor to ask him, "What is your specific proposal regarding coal extraction?"

Samsul Alam replied that it is necessary to decide after a more in-depth discussion. He stated that an agreement was made with the public that open-pit mining would not be done, so it must be annulled first. He commented that discussing this in a public forum is risky. If coal is to be extracted, the government can do it professionally. The government must formulate a unified position by considering various opinions.

Dr. Yunus Akon, Former Chief Geologist and Director, Atomic Energy Commission

The southern part of Barapukuria and Phulbari are 100% suitable for open-pit mining. The most significant factor is that our coal quality is very high. Another thing that was missed in the presentation is that 20% of our coal is coking coal, which is very positive for sustainable mining. Coking coal is much more expensive than thermal coal. Therefore, there is no reason for us not to extract it. Over the past 15 years, we have extracted only 0.7 million tons of coal from Barapukuria.

If we do underground mining here, we will not get much coal. Underground mining will be of no use to us here. Another thing is that roughly three million tons of coal are needed to generate one thousand megawatts of electricity. To operate a power plant with a capacity of five thousand megawatts, we will need fifteen million tons of coal from indigenous sources. If we do underground mining like Barapukuria, we cannot dream of a power plant with a capacity of five thousand megawatts. If we do open-pit mining, we can dream of power plants with capacities of three, four, or five thousand megawatts.

Open-pit mining is feasible in Phulbari. We have established coal-fired power plants with a capacity of 7/8 thousand megawatts, but we are only able to use fifty percent due to a lack of coal. As we have our resources, why should we not do it? I urge the advisor not to wait for an elected government. Sometimes even an elected government cannot make a decision. I urge the current interim government to make a quick decision to use our valuable resources in the interest of the country. We have been discussing this for over 30 years.

Dr. Kazi Matinuddin Ahmed, Dean, University of Dhaka

Whenever we start discussing coal, we end up in a confrontation, and our urgent decisions get delayed one after another. We cannot move forward. This has become a problem for us. What is the reality? Our coal demand is increasing. We have good quality coal reserves, but we cannot use them. What is the alternative? We are importing low-quality coal and damaging our environment with it.

Now the question is, why can’t we do it? There is often a debate on which method to use. The method will depend on the geological condition and technical data of the coal reserve area. For our coal, we can go for open-pit mining as the recovery rate is much higher. Higher profits make it easier to rehabilitate for the affected. In this regard, perception is a big issue. Those of us working at the technical level never say that open-pit mining will cause no harm. An ESPA study must be conducted, and everyone's opinion must be considered. We must set this up as a technological calculation.

And if there is damage, providing compensation solves the problem. We need to create a roadmap for this. Even if we start now, we will not be able to add domestic coal before the next eight years. The longer we delay, the further we fall behind. Globally, it is said that coal-fired plants cannot be operated after 2040. Taking these factors into account, quick decisions must be made.

Water management is a major challenge for open-pit coal extraction. Especially the notion that there will be no water there, and the entire area will become a desert, is not correct. Technology has advanced a lot. There are measures to manage water issues. The Phulbari study was conducted a long time ago. It needs to be updated because technology and the economy have changed. We do not know if the company is still interested.

"I urge that we should not waste more time. We need to decide on how we will use our coal. I believe there should be no disagreement on this."

Water management is a major challenge for open-pit coal extraction. Especially the notion that there will be no water there, and the entire area will become a desert, is not correct. Technology has advanced a lot. There are measures to manage water issues. The Phulbari study was conducted a long time ago. It needs to be updated because technology and the economy have changed. We do not know if the company is still interested. 

Dr. Nehal Uddin, Former DG, Geological Survey of Bangladesh

I have been intimately involved with the country's coal reserves. Based on this experience, I would say that we do not have many options. Our gas reserves are limited. As an alternative, coal is our only resource. We should move towards coal extraction. However, we will face some challenges in doing so. If I start with Barapukuria, we are attempting open-pit mining in the northern part of Barapukuria. This area is 19 square kilometers.

While this is not sufficient for an open-pit mine, it is not impossible either. The reserves here are also very limited. The problem here will be the need to pump a huge amount of underground water. In Phulbari, re-injection is mentioned, but to do that, we need to create water storage. To fill the gap created by coal extraction, we need to refill the soil, keeping the topsoil separate and placing it back on top during refilling.

Dr. Ijaz Hossain, Professor, University of Engineering

There has been a lot of debate on this issue. Appoint world-class experts and involve locals with them. No matter how positive the local experts are, you will find another expert to say something negative. Therefore, this issue will not be resolved through local debate. It should be given to international consultants who will come and deeply study the pros and cons. If we get billions of dollars worth of coal after mining, then we have to abandon the idea of agriculture. Thinking about agriculture is wishful thinking. It is not possible over there.

Mollah Amzad Hossain, Editor, Energy & Power

My question was, why did you start discussing coal again? You are saying that your intention is for the political government to come and make a decision. I think the question of whether we will extract coal or not is baseless. Outside of gas, our second primary resource is coal. In the past, political governments have used the coal issue as a political football. For example, a respected teacher from BUET was appointed to review Asia Energy's Scheme of Development.

At the same time, negotiations began with the company. In a press conference, it was said that the agreement with Asia Energy was illegal. Someone asked, "Your previous minister agreed with an Australian company in 1994, which was reassigned. Is that also illegal?" The answer was, "Yes, that is also illegal."

A professor from BUET said one thing before taking government responsibility and another after assuming office. This way, contradictory statements have been made about coal for the past thirty years. The latest national committee on coal was formed, and it is shameful that Petrobangla could not provide the number of committees formed so far.

The cost of coal extraction in Barapukuria is $176 per ton. Is there any economic need for this coal extraction? There is a 525 MW power plant in Barapukuria, but have we been able to operate more than 250 MW? I think it is unnecessary. These decisions were made for political reasons.

We only need to make a contract once for a power plant or gas extraction. But for mining, we need to maintain constant communication with the local community. Barapukuria failed in this regard. During negotiations with villagers for subsidence, the lack of trust among locals became evident. The distrust and disbelief among people regarding the mine must be addressed.

It is good that you have taken the initiative. When BNP took the initiative, the Awami League leader spoke out. When she came to power, she got stuck in her own words. From 1997 to 2000, the government was positive about coal, but later, the government never wanted to extract coal. If we do not extract coal, will we be able to bear the import cost of 3 to 4 billion dollars? Even if I decide today, China might still be interested in investing. Otherwise, it will remain underground, and no investment will be available.

Fauzul Kabir Khan, Energy Advisor, MEMR

One of the debates about coal is whether to go for open-pit or underground mining. Another issue is how to appoint contractors for mining if the government decides to extract coal.

There are various technical aspects of coal mining that many people do not understand. Whether it is open-pit mining or deep-shaft mining, there are environmental aspects to consider. There are issues of human resettlement, soil rehabilitation, and the selection of miners. Today's seminar is meant to give an understanding of these issues.

Our government is interim. Afterward, an Energy Minister will come. Our consideration is what we will advise him. We know that the President leaves a note for his successor. The purpose of this seminar is to find out the different pathways without causing any controversy. For instance, whether to extract coal or not is an option. Some people say coal must be extracted. For example, we can use solar power. We will try to outline the different pathways so that those who come to power can make an informed decision about why there were problems and why decisions couldn't be made for so many years.

I would like to know from you whether any further feasibility study is needed for this or not, especially regarding Barapukuria, because we have our own power plant there. If there is no mine or coal production, the power plant will shut down. Do you think any study is necessary or not?

Md. Saiful Islam, Energy Secretary, MEMR

In the chairman's address, Energy Secretary Saiful Islam says, "The primary purpose of this seminar was to reach a consensus and understand the actual situation so that we can leave a directive note for those who come next. Today's discussion was undoubtedly informative. Our main purpose was an academic discussion. From this, we can realize that our current coal policy needs a review. Secondly, we need to create a road map.

It is time to decide whether we will use our national resources or not. Since we have several coal-based power plants, we constantly import coal from different places. It is very expensive, costing foreign currency. Even this morning, we had a meeting with the Bangladesh Bank, where it was highlighted that we have a dollar shortage and are struggling to pay various foreign bills.

The Energy Secretary says, Today's seminar is about how we can use our domestic coal, how we can use the country's resources. Further discussions with you will lead to decisions on this matter. 

Open Discussions

The Energy Advisor asks Professor Samsul Alam what he says.

Dr Samsul Alam says, Following what Mollah Amzad has said, how will you or I resolve decisions made based on political considerations through technical considerations? Professor Ijaz said that the topsoil can never be repaired, and this is the reality. We have to accept this reality in our decisions. However, it is stated everywhere that topsoil can be repaired and brought back to productivity.

At this stage, faced with strong opposition from the experts present, Professor Samsul Alam tells Dr. Mushfiqur Rahman, I am not here to argue with you. I am not an expert like you.

At that point, the Energy Advisor directly asks Professor Samsul Alam whether a study is necessary. Dr. Alam says, "A study will not be fruitful. The existing three studies need to be reviewed.

Former MD of Barapukuria ABM Kamruzzaman opposes this statement, saying, "Reviewing existing studies is not enough. If I want to do open-pit mining in Barapukuria North, further feasibility studies are necessary. Without feasibility, it is impossible. I am a mining expert. I have worked in coal mines for 31 years. I am speaking from my experience."

The Energy Advisor says, "I want to keep this debate simple. One issue is whether we will extract coal or not. The second is if we extract coal, what method will we use, open-pit or deep-shaft mining. The third is the transparent selection of miners. Another issue is the submission of existing survey reviews. Another opinion is to conduct a new study."

At this stage, the experts present give their opinions on the necessity of a new feasibility study, stating that the existing studies are very old.

At this stage, Dr. Samsul Alam says to the Energy Advisor, Let me make something clear. The experts seem to have assumed that an open-pit mine must be established, so a feasibility study is necessary. The Advisor says, "No, no.

At this stage, almost everyone present opposes Dr. Samsul Alam and says a study is needed. The existing materials also need to be reviewed to identify discrepancies and gaps. We must extract our own coal, otherwise, we will be in trouble. One speaker says we have some laws, rules, and regulations, and if environmental impact assessments were not done before, they need to be done. From the audience, the response comes, "Environmental Impact Assessment is part of the feasibility study."

Finally, the Energy Advisor says, "Alright, we can finish now. We have discussed a lot. It will be very useful. At the same time, it is primarily an academic exercise. This is not a seminar for making final decisions now. We are not making any final decisions now, nor are we deciding whether to review or conduct new studies. But we do not want a situation where the next government receives no direction. We want to avoid such a situation. We hope to leave some guidelines for the next government. Even if not specific, at least we will provide different pathways to them."