GCM Resources Agrees to JV for Bangladesh Coal, Power Project; Shares Soar
October 15 2020 - 3:11AM
Dow Jones News
By Jaime Llinares Taboada
Shares in GCM Resources PLC jumped Thursday after the company
said that it had signed an agreement with China Nonferrous Metal
Industry's Foreign Engineering & Construction Co. to develop
GCM's Phulbari coal and power project in Bangladesh.
The AIM-listed mining-and-energy company said the two companies
have agreed to establish a joint venture to discuss and arrange
works related to the project, including a definitive feasibility
study and financing. China Nonferrous Metal is expected to acquire
a 5% stake in the joint venture, GCM said.
As part of the agreement, China Nonferrous Metal will facilitate
to arrange financing for the project and be appointed as exclusive
engineering, procurement, construction and commissioning
contractor, GCM said.
Shares in GCM at 0725 GMT were up 7.50 pence, or 75%, at 17.50
pence.
GCM said it is in talks to include Power Construction Corp. of
China Ltd. as part of the framework agreement.
"Whilst the Covid-19 pandemic has delayed our progress with the
project, we believe that it has encouraged the government of
Bangladesh to review and enhance its energy security by utilizing
local fuel sources, following supply and importation disruptions,"
GCM Executive Chairman Datuk Michael Tang said.
The Phulbari project is planned to combine a 572 million metric
tons high-grade coal mine with a 6,000-megawatt power plant.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
October 15, 2020 03:56 ET (07:56 GMT)
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