Protest against GCM Resources at its AGM on 28 December

Our friends at Phulbari Solidarity Group and Committee to Protect Resources of Bangladesh, UK branch, are planning a protest at the AGM of GCM Resources, which continues lobbying to be allowed to construct a huge opencast coal mine at Phulbari in northwestern Bangladesh, despite massive opposition and the fact that tens of thousands of rural people would have to be displaced to make way for it.

Our friend Samarendra Das writes:

Since April 2004 the flotation of GCM Resources plc (GCM.LN), the AIM listed mining and energy company at London Stock Exchange with a market capitalisation of £ 24.6 million and a negative rate of 8.76% the Company’s principal activities are that of a holding company and, through its subsidiaries, Viz; Asia Energy (Bangladesh) Private Limited , Asia Energy Corporation Pty Limited (Australia), South African Coal Limited (Great Britain), Asia Energy Corporation (Bangladesh) Pty Limited(Australia) development of the Phulbari Coal Project in Bangladesh and investment in companies working in Bangladesh, China, Africa, Australia and Sweden.

Still with the hope of securing approval from the Government of Bangladesh with a resource of 572 million tonnes (JORC 2004 compliant) and an estimated 6,000MW at the Phulbari Coal and Power Project in north-west Bangladesh this recent resignation of their only qualified geologist on their board Mr Nik Raof Ibrahim Daud in December 4 this year, (who was appointed to GCM Resources PLC as Non-Executive Director on September 30, 2015), it remains to be seen how the Memorandum of Understanding (MOU) signed on 27 November 2018 with Power Construction Corporation of China Ltd (POWERCHINA), would bring any investor confidence. As according to their own annual report 2018 the Group recorded a loss of £5.4 million for the year ended 30 June 2018 (2017: £1.0 million) and hoping ‘to secure further strategic partnerships in relation to mine and power development’ (Datuk Michael Tang PJN Executive Chairman’s statement 30 November 2018). The group seems to be relying on its £44.7m worth of intangible asset representing the exploration and evaluation expenditure on the Phulbari Coal and Power Project. (page 15, AR, 2018)

With its subsidiaries such as Asia Energy Corporation (Bangladesh Pty Ltd and backed by a number of private banks and hedge funds: HSBC HOLDINGS PLC, CREDIT SUISSE GROUP AG, HERO NOMINEES LIMITED, POLO RESOURCES LIMITED VG, KILKENNY LIMITED, MR C MCNAMEE . DYANI CORPORATION LIMITED HK, ORIENTAL EAGLE GROUP LIMITED, Hargreaves Lansdown, , REVENUE ANCHOR SDN, MEG GLOBAL VENTURES PTE. LTD. SG, MELAID HOLDINGS INC, , SMITH & WILLIAMSON HOLDINGS LTD, Jarvis Securities, Alliance Trust, Compagnie Lombard, ODIER SCMA via its funds CH B,EFG INTERNATIONAL AG , CURTIS BANKS GROUP PLC,CLOSE BROTHERS GROUP PLC, UBS GROUP AG, WALKER CRIPS GROUP PLC, CHARLES SCHWAB CORPORATION to name a few.

With odds against their social license to operate since the massacre of three innocent protestors on 26 August 2006 who were shot dead when security forces fired on a peaceful protest gathering of more than 50,000 people that left 100 more injured with local community demanding to scrap the project this AGM in London is very crucial.

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