GCM Resources

GCM Resources plc is a United Kingdom mining company quoted on the London Stock Exchange's Alternative Investment Market under the ticker GCM. The company is principally associated with the Phulbari Coal Project in the Dinajpur District of northern Bangladesh, an open-pit coal-mining proposal that has generated sustained political, environmental and social controversy. The company was incorporated in London in September 2003 as Asia Energy plc. It acquired the entire issued share capital of Asia Energy Corporation Pty Ltd, the entity holding exploration and mining rights connected with the Phulbari project. The project had an earlier history: Asia Energy Corporation entered the Bangladeshi coal sector in 1998 by acquiring a mining contract originally awarded to BHP in 1994. The proposed mine concerns coal deposits located at significant depth and would require the removal of overburden and extensive dewatering of the mine area. GCM's stated development concept has involved a large-scale open-pit operation, associated transport and infrastructure, coal production for domestic and export markets, and programs intended to compensate affected landowners and restore mined land. The company has argued that the project could deliver major investment, employment, energy supplies and fiscal benefits to Bangladesh. It has also maintained that topsoil would be removed, stored and returned during land rehabilitation and that water pumped from the mine could be distributed for agricultural use. Opposition has focused on the anticipated displacement of communities, potential effects on agricultural land and groundwater, risks to local ecosystems and concerns about the consequences for indigenous Shantal communities. Campaigners have argued that Phulbari is an important food-producing region and that mine dewatering could affect water supplies over a broad area. The scale of possible displacement has been disputed, with opponents citing figures of up to approximately 120,000 people and the company presenting lower estimates and compensation commitments. The project became the center of major unrest in Bangladesh in August 2006. On 30 August, a large crowd attacked or entered the local offices associated with Asia Energy in Phulbari. Security forces opened fire, resulting in reported deaths and hundreds of injuries. Further protests and national strikes followed, and the Bangladeshi authorities temporarily halted activity and announced that the company's mining rights had been withdrawn. Asia Energy disputed the basis for terminating its contractual rights and sought to preserve the project. The controversy also affected the company's public-market profile. After reports that the Bangladeshi government would cancel agreements with Asia Energy, the company's share price fell sharply and trading was suspended on AIM on 31 August 2006. Trading resumed in October 2006 after the company said it had received no formal notification terminating its contract and that its directors did not believe the agreement had been cancelled. Asia Energy changed its name to Global Coal Management plc in January 2007 and later adopted the name GCM Resources plc. The company has also been associated with coal and uranium interests outside Bangladesh, but the Phulbari project has remained its defining asset and strategic objective in the available reference material. Diplomatic reporting released in 2009 indicated that United States officials had encouraged the Bangladeshi government to reconsider the project. At the same time, Bangladeshi and international campaign groups continued to organize against it, including a march from Phulbari to Dhaka in 2010 and demonstrations in London. GCM Resources is therefore best understood as a project-focused mining company rather than a consumer-facing brand. Its corporate identity is closely linked to the unresolved Phulbari development proposal, the debate over open-pit coal mining in Bangladesh and the wider tension b…

GCM Resources originated as Asia Energy plc, incorporated in London in September 2003. The new company acquired 100 percent of Asia Energy Corporation Pty Ltd, which held rights associated with the Phulbari Coal Project in Bangladesh's Dinajpur District. The Bangladeshi project had entered the company's predecessor structure in 1998, when Asia Energy Corporation acquired a mining contract that had originally been awarded to BHP on 20 August 1994. The proposed mine is based on coal deposits at considerable depth and was designed as a large open-pit operation. The project became controversial because of its anticipated physical and social footprint. Developing the mine would require removal of surface material, excavation of a large pit and continual pumping of groundwater to keep the workings dry. Supporters presented the project as a potential source of domestic energy, investment, jobs, infrastructure and government revenue. The company also proposed compensation for affected residents, preservation and later replacement of topsoil, and distribution of pumped water for farming. Critics questioned whether agricultural productivity, groundwater systems and community livelihoods could be restored after mining. Environmental and social campaigners argued that the project could displace a very large population, including members of the Shantal indigenous community. Estimates cited by opponents reached roughly 120,000 people, while the company maintained that displacement would be lower and that affected households would receive compensation. Campaigners also warned that Phulbari is a major agricultural area and that mine dewatering could threaten water resources. Concerns about arsenic contamination added complexity to proposals for using pumped groundwater in agriculture. The dispute reached a crisis in August 2006. On 30 August, a crowd reported to number in the tens of thousands moved against local offices associated with Asia Energy. Security or paramilitary forces opened fire, with reports of six protesters killed and approximately 300 injured. Additional injuries and political unrest followed, including half-day strikes. The Bangladeshi government banned further protests at the mine site and announced that the company's mining rights had been withdrawn. Asia Energy challenged the practical and legal effect of those statements, while company representatives emphasized the project's investment value and its proposed compensation arrangements. The events also caused severe market disruption. Asia Energy's shares fell sharply after reports of the government's position, and the company asked for its AIM quotation to be suspended on 31 August. Trading resumed on 6 October 2006. The company said it had not received formal notification changing the contract and that its directors did not believe that the agreement had been terminated. The episode left the project in a prolonged state of uncertainty. In January 2007, Asia Energy plc changed its name to Global Coal Management plc. It later became GCM Resources plc. Although the company has been linked to additional coal and uranium opportunities in other jurisdictions, Phulbari has remained the principal project associated with its public identity and corporate strategy in the available material. The proposed mine continued to attract international attention. A leaked United States diplomatic cable from 2009 reportedly indicated that American diplomats had encouraged Bangladeshi officials to reopen discussions about the project. Opposition organizations continued their activities, including a march from Phulbari to Dhaka in October 2010 and protests in London in December of that year. The project consequently came to represent a broader debate about Bangladesh's energy needs, foreign mining investment, open-pit extraction, land acquisition, indigenous rights, environmental risk and public consent. GCM Resources is not primarily a retail or consumer brand. It is a listed mining enterprise whose identity is inseparable from the development status and controversy surrounding Phulbari. The reference material does not establish a completed commercial mine, a confirmed production date or a definitive resolution of the project's regulatory and social disputes.

1. 2010Opposition campaign expands

   Protesters marched from Phulbari to Dhaka and campaign groups demonstrated in London against the project.

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2. 2007Corporate name changed to Global Coal Management

   Asia Energy plc adopted the name Global Coal Management plc while continuing to promote the Phulbari project.

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3. 2006Phulbari protests and suspension of AIM trading

   Deadly protests occurred on 30 August, followed by government action and a temporary suspension of Asia Energy's AIM quotation.

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4. 2006AIM trading resumes

   The company's shares returned to trading on 6 October after Asia Energy disputed reports that its contract had been terminated.

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5. 2003Asia Energy plc incorporated in London

   Asia Energy plc was incorporated in London in September and acquired Asia Energy Corporation Pty Ltd.

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6. 1998Asia Energy Corporation enters the Phulbari project

   Asia Energy Corporation Pty Ltd acquired the mining contract previously associated with BHP and entered the Bangladeshi coal sector.

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7. 1994Original Phulbari mining contract awarded to BHP

   A mining contract connected with the Phulbari area was originally awarded to BHP on 20 August 1994.

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A project-focused mining company seeking to develop coal and other mineral resources, with its corporate profile centered on the proposed Phulbari Coal Project in Bangladesh.

• Phulbari Coal ProjectCoal mining development project

  A proposed open-pit coal mine in the Phulbari region of Dinajpur District, Bangladesh. The development concept involves excavation of a large mine area, continuous groundwater pumping, coal production and associated transport and infrastructure. GCM has described compensation, topsoil management, land rehabilitation and use of pumped water as parts of its proposed approach. The project has not been established as an operating commercial mine in the supplied reference material.

• Coal and uranium exploration interestsMineral exploration

  Following its corporate renamings, the company was also associated with coal and uranium projects in other countries. The supplied reference material does not identify the projects, their locations, development stages or commercial status in sufficient detail.

• 2010Phulbari-to-Dhaka protest march

  Bangladesh

  Opponents organized a week-long march from Phulbari to Dhaka to maintain public pressure against the proposed mine.

  Outcome. The march demonstrated that organized opposition remained active years after the 2006 unrest.

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• 2010London shareholder-meeting protest

  United Kingdom

  An alliance of campaign groups protested in London outside a meeting involving GCM-related company officials and shareholders.

  Outcome. The protest internationalized criticism of the Phulbari proposal and kept environmental and social concerns visible to investors.

  Source
• 2006Bangladesh opposition to the Phulbari Coal Project

  Bangladesh · United Kingdom

  Bangladeshi communities, environmental organizations and international campaign groups opposed the proposed open-pit mine, citing displacement, agricultural disruption, groundwater risks and impacts on indigenous communities.

  Outcome. The campaign contributed to major unrest, government restrictions on protests and a temporary halt or withdrawal of the company's mining rights, although the company continued seeking a path to advance the project.

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• 2007Change corporate name from Asia Energy to Global Coal ManagementStrategy

  The company continued to pursue the Phulbari Coal Project despite the political and social controversy surrounding it.

  What changed. Asia Energy plc changed its name to Global Coal Management plc on 11 January 2007.

  Aftermath. The company later adopted the name GCM Resources plc and retained Phulbari as its principal associated project.

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• 2006Suspend AIM trading after reported government actionOther

  Press reports quoted a Bangladeshi junior minister as saying that existing agreements with Asia Energy would be cancelled after the Phulbari protests.

  What changed. Asia Energy requested suspension of its shares on AIM on 31 August 2006, stating that it had not received formal government notification.

  Aftermath. Trading resumed on 6 October after the company said it did not believe its contract had been terminated.

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• 2009Leaked diplomatic cable on efforts to revive PhulbariControversy

  A leaked United States diplomatic cable reportedly indicated that American diplomats had pressed the Bangladeshi government to reconsider reopening the Phulbari project with GCM. The disclosure intensified scrutiny of the project's international political backing.

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• 2006Deaths and injuries during Phulbari protestsControversy

  Six protesters were reported killed and approximately 300 injured on 30 August 2006 when security or paramilitary forces opened fire during unrest connected with the proposed mine. The incident triggered further strikes, government restrictions and continuing criticism of the project.

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• 2010Protest march and London demonstrations continue opposition to Phulbari

  Opponents organized a week-long march from Phulbari to Dhaka in October, while groups also demonstrated in London during a meeting involving company officials and shareholders in December.

  CampaignOther
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• 2007Asia Energy changes name to Global Coal Management

  The company changed its name from Asia Energy plc to Global Coal Management plc while reiterating its commitment to the Phulbari Coal Project.

  Other
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• 2006Asia Energy trading suspended after reports of mining-rights cancellation

  Following press reports that Bangladesh would cancel existing agreements with Asia Energy, the company requested suspension of its AIM trading on 31 August. It stated that it had not received formal government notification.

  RegulationOther
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• 2006Trading resumes after Asia Energy disputes contract termination

  Trading resumed on AIM on 6 October after Asia Energy said it had received no formal notice that its contract had been terminated and that its directors did not believe the agreement had been cancelled.

  RegulationOther
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1. GCM Resources