GCM Resources signs agreement to develop its Phulbari Coal Mine
AIM-listedannounced on Thursday it had entered into a bilateral agreement with two engineering companies based in China.
The MOU, which is valid for an initial six months until a mutually agreed extension, will form a strategic partnership between GCM, China Nonferrous Metal Industry's Foreign Engineering and Construction Company (NFC) and Power Construction Corporation of China (PowerChina).
The alliance will see all parties jointly managing the project to develop GCM’s Phulbari Coal Mine in northwest Bangladesh.
Executive Chairman of GCM, Datuk Michael Tang commented:
“Both NFC and PowerChina are highly respected global companies, and in becoming strategic partners to the Company's Project, will, in the Board's view, add tremendous strength and credibility to our proposal.”
Shares in GCM Resources rose almost 20% following the news.
In accordance with the agreement, each party within the alliance will be expected to work alongside each other in order to receive the necessary approvals from the Bangladeshi Government.
Additionally, both NFC and PowerChina will facilitate the development of the project under China’s “One Belt, One Road Initiative.”
Mr Tang further acknowledged the alliance as an important milestone in the development of the Phulbari project, commenting:
"Our strategy is to become an impact project for the people of Bangladesh, providing low cost and sustainable electricity in the country, by combining the Company's coal mine proposal with mine mouth power plants generating 6,000MW.”
For more news and updates on GCM Resources:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.