It is reported that GCM Resources Plc’s subsidiary Bangladesh based Asia Energy Corporation has proposed to build a 1,000 MW power plant using coal from Bangladesh's northwest field. It has submitted a plan to the Bangladesh government to develop a coal mine at the field at Phulbari by using open pit mining technology.

A Bangladeshi government official said that "We have received the proposal for the power plant through the board of investment, but before giving them any green signal, we need to get an approved national coal policy." He added that a committee appointed by the ministry of power, energy & mineral resources submitted a draft coal policy to the government last week for approval.

Mr Gary Lye CEO of Asia Energy Corporation said that "Bangladesh is facing a recognized shortage of energy and power and the situation are worsening and coal fired power stations are being seriously discussed by the government and people." He added that Bangladesh faces a power deficit of up to 2,000 MW against demand of 5,000 MW daily.

Meanwhile, the World Bank said that frequent power failures cut Bangladesh’s gross domestic product by around USD 1 billion annually and would need USD 10 billion invested over the next 10 years to overcome the shortages.

During the feasibility study in 2004-2005, Asia Energy drilled 108 holes and defined resource of 572 million tonnes of high quality coal at the Phulbari coal basin project. The current coal reserve in Bangladesh's 5 coal fields is around 2.55 billion tonnes.