Cambrian Mining plc - A Quality Play on Coal & Gold

Bangladesh has no steel industry, but is importing steel at an ever increasing rate. Tata of India are looking to set up a $2 Billion steel plant there if the government can supply the gas and coal it wants.

However it seems that China is already doing deals with the Bangladesh government, building power stations to get a hold on the gas reserves for themselves. So coal for a new Bangladesh steel industry seems the way it could well pan out.

Coal is in short supply in Bangladesh make no mistake, the needs for electricity generation, a brick industry, a new steel industry and for personal household consumption will more than use up what it has.

I can see no way that AEN will be able to sell the majority of Phulbari coal out of Bangladesh.

COAL
South Asia contains 86 billion short tons of coal, or around 15% of the world total. Currently, coal accounts for 43% of South Asia's energy consumption. Nearly all of this is produced and consumed by India, the only South Asian country with significant coal reserves, and the world's third largest coal producer (after the United States and China). Indian coal generally is of poor quality -- i.e., low in calorific content and high in ash -- and primarily is located far from major consuming centers. Power generation accounts for about 70% of India's total coal consumption, followed by steel and other industries. India's coal consumption is expected to increase to 565 million short tons (Mmst) by 2020, up 62% from 348 Mmst in 1996. Largely for this reason, South Asia's carbon emissions are expected to increase sharply in coming years.

Coal currently plays a relatively minor role in Pakistan's energy mix (5% in 1999), but the discovery of large volumes of low ash, low sulfur lignite in the Tharparkar (Thar) Desert in Sindh province will have a positive impact on consumption levels. Bangladesh and Sri Lanka have insignificant coal reserves, and consume almost no coal.

B