Asia Energy - Coal and Power for Bangladesh

.................. A ROCK AEN AND A HARD PLACE ................

by A.Biswell


The story so far is that BHP found the coal in Phulbari but realized that they would never actually be able to sell it abroad for profit because it was earmarked for economic expansion for the country in the future, it had found the crown jewels but had to sell them cheap to someone else....Asia Energy.

Asia Energy managed to leverage a small purchase of a few millions into a company worth hundreds of millions by selling shares as it floated on the stock exchange. It spent some of the money showing just how much coal there was , and spoke of a 2,500MW coal fired power station to be built near the new mine to be dug, so that government approval would be granted.

However when costs for such a power station were looked into , as built by others in different countries they were found to be nearly $4 Billion. Too much money, as AEN only had a Mkt Cap of $313 Million , so another $3,687,000,000 was needed. A proposal for two 500MW power stations was put forwards to cut the price in half, to only $2 Billion, so with a stroke of a pen the money needed was reduced to a mere $1,687,000,000, who said Mr Malins should go ?

The Bangladesh Government were crafty however, although a little green behind the ears, and eager for western currency, even they could see that a minnow like AEN would need a whale to come along and provide the money to make things happen....so they witheld the 'final permit' to commence mining and sell coal abroad till they know that the money will actually be there, and the whale harpooned.

B