GCM Resources

GCM Resources is a London-based mining company listed on the junior Aim market. GCM wants to develop a huge open cast coal mine in Bangladesh, which its website states is 'poised for development' pending the Bangladeshi government's approval.

The deposit is situated close to the Phulbari township on the Indian border in the country's north-west. In 2007 it was estimated to contain up to 572 million tonnes of high grade coal however to 130,000 people could be displaced by the 1,000ft-deep mine stretching across 14,500 acres.

The controversial mine has been on hold since 2006 because of local opposition. During protests at the mine about the possible evictions three people were killed and 800 injured.

UK government support

According to The Guardian, documents released under the Freedom of Information Act showed that GCM bosses approached Britain's Department of Trade and Industry to soothe relations between the company and the Bangladeshi government.

In early 2008 UK Foreign Secretary David Miliband backed the project on a trip to Bangladesh, but more than 60 international campaign groups wrote to the Asian Development Bank demanding it turn down a £100m loan to the scheme, which it did in April 2008.

Gareth Thomas, UK Minister for International Development and Minister for Business stated in April 2008:

We have provided support to Global Coal Management Resources PLC, through the British high commission in Dhaka. They have lobbied to ensure that the Government of Bangladesh take the company’s interests into consideration and do not prohibit opencast mining. The British high commission will continue to remain in touch with the company and will represent their interests as appropriate. The Bangladeshi Caretaker Government’s new draft coal policy leaves the way open for opencast mining in Bangladesh in the future.

An official complaint to the Organisation for Economic Co-operation and Development was also by campaign groups the World Development Movement and the International Accountability Project.

Activities

Highlights of 2013 for GCM outlined in its annual report:

• The Bangladesh Government has continued to restructure the country's energy sector towards coal-fired power plants significantly increasing the anticipated demand for high quality thermal coal within the country. Utilisation of domestic coal resources is essential to Bangladesh's future energy security.

• Over the last six months, the Company has continued its engagement with the local community both within and surrounding the Phulbari Coal Project area. Support for the Phulbari Coal Project is increasing within the local communities.

• GCM recorded a loss after tax of £518,000 for the period ended 31 December 2013 (31 December 2012: loss of £2,172,000).

• The Company raised £2.3 million on 29 August 2013 via a share placement.

People

• James Hobson - Chief Financial Officer & Company Secretary
• Gerard Howell - Chairman

Shareholders

As at 2013:

• Seren Capital Management Limited - 2,000,000 - controlled by Richard Griffiths

Former shareholders

• RAB Capital's Situations Company Ltd - its 2006 annual report stated:

'Profits for the Master Fund over the year totalled $670m, while losses cost us $238m, which is a ratio of 2.8 to 1Sadly our two largest holdings, Oxus Gold and Global Coal Management (formerly Asia Energy plc, now GCM Resources) lost US$85 million (or 12% of the Master Fund's starting NAV} between them, due to extreme local political difficulties which can be judged by the fact that people were shot in both locations'. We have bought more of both stocks and believe we will make good returns in the future. . . ” (emphasis added).

According to the report 'From Money to Metal':

In May 2008 RAB Capital plc held a 25.96% stake in GCM Resources which it sold the majority of (20.5%) to Polo Resources Ltd (qv), listed on AIM. By 9 June 2008, RAB’s stake in GCM Resources had fallen below the notifiable 3% level.

As of 20 February 2008, Polo held 8.8% of GCM, while Polo’s chair, Stephen R Dattels (qv) owned a personal stake of 5.77%.

Lobbyists and PR firms

2014

• Bell Pottinger - Lorna Cobbett / Joanna Bloom

Year

• Tulchan Communications

Company details

Date of Incorporation: 26/09/2003

Country of Origin: United Kingdom

Company Type: Public Limited Company

Nature of Business (SIC): 05102 - Open cast coal working

Accounting Reference Date: 30/06

Last Accounts Made Up To: 30/06/2013 (GROUP)

Next Accounts Due: 31/12/2014

Last Return Made Up To: 26/09/2013

Next Return Due: 24/10/2014

Mortgage: Number of charges: 2 ( 2 outstanding /

0 satisfied / 0 part satisfied )

Last Members List: 26/09/2011

Last Bulk Shareholders List: 26/09/2011

Address

GCM RESOURCES PLC

3 Bunhill Road

LONDON EC1Y 8YZ

Company No. 04913119

Previous names

• GLOBAL COAL MANAGEMENT PLC - Date of change 12/12/2007
• ASIA ENERGY PLC - Date of change 10/01/2007

External resources

• GCM Resources, [PDF] Response to reports on environmental & resettlement impacts of Phulbari Coal, 27 January 2009
• Nick Matthiason, Fury at Bangladesh mine scheme, The Observer, 9 March 2008
• Nick Matthiason, Asian bank scuppers UK mine project in Bangladesh, The Observer, Sunday 6 April 2008
• Simon Neville, [http://www.theguardian.com/business/2012/dec/20/bangladesh-mine-activists-coal-gcm

Bangladesh mine activists dump coal outside GCM meeting in London], The Guardian, 20 December 2012 18.58 GMT

• Miriam Ross, UK government accepts complaint over GCM Resources’ Bangladesh coal mine, WDM website, 14 June 2013

• International Accountability Project & Bank Information Center (BIC)Phulbari Coal Project: An Assessment of the Draft Resettlement Plan Prepared by Global Coal Management/Asia Energy Corporation’, August 2008
• Roger Moody, (commissioned by BIC) ‘Phulbari Coal: A Parlous Project November 2008

Contact

Websites: http://www.gcmplc.com/‎

http://www.phulbaricoal.com