An open-cast coal mine in Phulbari, Bangladesh, proposed by Global Coal Management (GCM), will displace more than 40,000 people and furthermore threaten the water supplies, food security and livelihoods of another 100,000 locals, according to the UK activist group World Development Movement (WDM). WDM claims that the UK government has been actively supporting plans to build the mine.

The dewatering of the open pit could reduce the groundwater level of the surrounding area and affect farmers and increase desertification. GCM has promised to pipe water to the tube wells of farmers in order to mitigate the effects of lower groundwater levels and states that the project will “stimulate and strengthen local and regional economies and assist poverty alleviation through job creation, training and development opportunities for local communities”.

The Asian Development Bank (ADB) announced, in April 2008, that it would not provide an US$ 300 million (EUR 190 million) loan and political risk guarantee. According to ADB, “it is premature to continue dialogue with the private sector under current circumstances … we are open to suggestions of the government of Bangladesh, civil society and other stakeholders and prepared to review our engagement in this project to ensure that all sensitivities, including concerns relating to safeguard issues, are fully considered.”

Major investors include British bank Barclays and Swiss banks UBS and Credit Suisse.

Related web sites: WDM - Phulbari Coal Mine ; Wikipedia - Open-pit mining

Contact: WDM, UK, wdm@wdm.org.uk ; GCM, UK, info@gcmplc.com

Source: WDM, 12 May 2008 ; Nick Mathiason, Guardian, 6 Apr 2008

Tags: governance, south asia, water and livelihoods, water quality, water resources management