GCM Resources PLC Prefeasibility Assessment for Further Power Plants (4163G)
06 November 2018 - 6:00PM
UK Regulatory
TIDMGCM
RNS Number : 4163G
GCM Resources PLC
06 November 2018
6(th) November 2018
GCM Resources plc
("GCM" or the "Company")
(AIM:GCM)
Delivery of Prefeasibility Assessment Report for
Further Mine-Mouth Power Plants
Further to the announcement on 11 September 2018, GCM Resources
plc ("GCM" or the "Company"), an AIM quoted mining and energy
company, is pleased to advise that it has received a "Power Plant
Prefeasibility Assessment Report" ("PFS") from Power Construction
China Corporation of China Ltd ("POWERCHINA"), the parent company
of Sinohydro Corporation Limited.
The PFS considers the technical aspects of developing 4,000MW of
power generating capacity to be implemented in two stages (each
stage consisting of two 1,000MW units) at the Phulbari coal mine
site. These power plants are in addition to the existing 2,000MW
power plant proposal with China Gezhouba Group International
Engineering Co Ltd ("CGGC") which GCM reported in its announcement
on 14 July 2017. All power plants are planned to be commissioned in
line with the coal mine's ramp up to full production.
The POWERCHINA report confirms that by utilising the latest
highly energy efficient Ultra-Super Critical power plant design,
6,000MW can be generated from the mine's thermal coal production.
This is a value-adding step for the Phulbari Coal and Power Project
and potentially provides a complete market for the planned 12
million tonnes per annum of thermal coal production.
In the preparation of the PFS, GCM's Bangladesh-based personnel
organised for a large team of technical experts from POWERCHINA to
visit the proposed site of the Phulbari Coal and Power Project.
GCM's personnel worked closely with the POWERCHINA team,
contributing its technical skills, experience, and local knowledge
to help streamline the study and other necessary due diligence.
POWERCHINA is a State-owned Key Enterprise of People's Republic
of China, and is a world-leading integrated engineering
construction group. In 2018, POWERCHINA ranked 182nd among Fortune
Global 500, 41st among Top 500 Enterprises of China, came 6th in
the list of the world's 250 largest global contractors and placed
2nd among top 150 engineering design companies worldwide according
to Engineering News-Report.
POWERCHINA and the Company are currently in discussions to
further progress the relationship.
The Executive Chairman of GCM, Datuk Michael Tang PJN,
stated:
"This is a significant step for the Phulbari Coal and Power
Project as it confirms that technically the Project is able to
support 6,000MW of power generation. Subject to satisfactory
negotiations, we aim to extend the arrangement with POWERCHINA and
then for more detailed feasibility studies to be completed on the
proposed mine mouth power plants, which we anticipate will provide
energy at the lowest-cost in Bangladesh.
"We are confident that with the support of such high calibre
development partners the Phulbari Coal and Power Project will
deliver substantial benefits for the Government, the people of
Bangladesh and our shareholders."
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
For further information:
GCM Resources plc Northland Capital Partners Ltd
James Hobson Nominated Adviser and Broker
Finance Director Matthew Johnson, Jamie Spotswood
+44 (0) 20 7290 1630 +44 (0) 20 3861 6625
GCM Resources plc
Tel: +44 (0) 20 7290 1630
info@gcmplc.com; www.gcmplc.com
About GCM Resources
GCM Resources plc (LON:GCM), the AIM listed mining and energy
company, has identified a high quality coal resource of 572 million
tonnes (JORC 2004 compliant) at the Phulbari Coal and Power Project
(the Project) in north-west Bangladesh.
Utilising the latest highly energy efficient power generating
technology the Phulbari coal mine is capable of supporting power
plants of up to 6,000MW. GCM is awaiting approval from the
Government of Bangladesh to develop the Project. The Company has a
strategy of combining the Company's mine proposal with up to
6,000MW of power generation, together with credible,
internationally recognised strategic partners. GCM aims to deliver
a practical power solution to provide the cheapest electricity in
the country, in a manner amenable to the Government of
Bangladesh.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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