GCM Resources (LON:GCM) was one of the sector's biggest risers after providing further information over the press speculation announcement on 23 September.
The company's investigation has found that press speculation in the Bangladesh media of an alleged decision by the government of Bangladesh on the mining method at Barapukuria coal mine was inaccurate and misleading.
GCM has obtained feedback from sources from within Government and the Bangladesh media which confirms that no decision has been made on whether the government's Barapukuria Coal Mining Company Limited, which is currently mining coal in the Barapukuria coal basin through underground mining, should adopt the high coal production open pit mining method.
In addition it was found that there were no grounds to suggest that the company's Phulbari coal project was impacted in any way.
It says that since the announcement on Friday, further Bangladesh media articles have accurately reported that a technically orientated progress meeting was held in government circles but no decisions were made regarding mining methods.
The company is deeply concerned regarding the negative impact that unsubstantiated and speculative media reporting can have on its and its stakeholders' image, reputation and financial position and consequently it has instructed its lawyers to issue a legal notice to a media outlet to protect its interests.
As stated in the company's announcement on Friday, GCM through its subsidiary has a legally enforceable contract with the government of Bangladesh which gives it the right to explore, develop and mine coal in northern Bangladesh.
Under the purview of the aforementioned Contract it successfully explored the Phulbari coal basin and provided the government with a scheme of development, supported by a detailed environmental and social impact assessment, for developing a high production open pit coal mine.
The company is awaiting government approval of the scheme of development to proceed with mine development and has received no notification from the government of any changes that would impact on its contract and ensuing rights. The company says it was pleased that Bangladesh' prime minister Sheikh Hasina addressed the nation via television on 27 August where she displayed pictures and referred to successful open coal mining and associated power generation in Germany's Cologne area.
She shared the successful environmental management of these operations, including water management and stated that communities and wildlife happily lived in close proximity to the mines and power plants.
The company wishes to note that the scheme of development for the Phulbari coal project adopts the proven best practices of the Cologne open pit coal mines, which are significantly larger in scale, in respect of water management issues and GCM's international team of advisers included consultants from RWE Cologne.
GCM is confident that a developed Phulbari Coal Project will contribute towards significant long term economic growth and social development by supplying high quality thermal coal for up to 4,000MW of lower cost power while generating many thousands of jobs, and that it is in the best interests of the Government, the nation and the local community that the Project proceed as quickly as possible.
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Edenville Energy (LON:EDL) has completed the current bulk sampling programme at the Rukwa coal to power project site in Tanzania has been completed. A total of approximately 20 tonnes has been extracted from open pit areas at three different locations in Mkomolo and Namwele.
The material has been processed according to Tanzania export regulations and is currently being shipped to SGS Laboratories in Johannesburg, South Africa.
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Berkeley Energia (LON:BKY) has appointed MDM Technical Africa (Pty), a wholly owned subsidiary of the Amec Foster Wheeler Group, to undertake the front end engineering and design (FEED) for the Salamanca mine.
The FEED is the execution phase of the project during which the overall engineering and process design is translated into equipment procurement packages and awards to specialist subcontractors.
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Kibo Mining (LON:KIBO) posts a pre-tax loss of £2.3m for the six months to the end of June compared with £913,891 a year ago.
- Key feasibility studies on the Mbeya Coal to Power project completed with strongly positive results
- Agreement reached with SEPCO III granting it sole bidder status for the MCPP EPC contract for refund of 50% of development costs incurred by the Company to date
- Agreement reached to convert Sanderson loan of £1.5m into a 2.5% equity interest in the MCPP project company demonstrates confidence in the project
- Recent appointments of reputable advisors and agreement with GE International has given renewed momentum to MCPP as it approaches financial close
- Plans well advanced to spin-out Imweru gold project into a new AIM & JSE listed company, Katoro Gold Mining Limited, raise funds and commence mine development
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Chaarat Gold Holdings (LON:CGH) has raised approximately £4.1m through the issue of 78,840,443 new ordinary shares at 5.25p apiece. The Placing was oversubscribed and, accordingly, certain investor applications were scaled back to limit dilution at this time.
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