Note: Its publish as cover Energy & Power Feb 1, 2009 Issue

Mollah Amzad Hossain
Ayesha Siddiqa, wife of an expatriate Bangladeshi, had a normal life
along with her baby until one-and-a-half years back. Her neighbors at
Moupukur, a tiny village adjacent to Barapukuria coalmine, had also
otherwise normal livelihood. But, Ayesha and others got frightened as
she and others felt a tremor like situation about 18 months ago and
cracks developed at their homes. With more horrifying situation for
them, a pond and cultivable land subsided about six months back. Again
they felt land shake on January 13 and more cracks developed at their
dwelling houses.

But, Ayesha and others are helpless. They are residing at the houses
with cracks as they don't have any other alternative. For Ishaq Ali,
the cracks are so risky that he along with his family members has been
residing under the open sky despite bite of chill in this winter.

Not only Moupukur, a similar situation in at least four other
villages, including Kalupara and Jigagari, adjacent to Barapukuria
coal mine. The villagers got some compensation from the mining
authority, official figure shows it at Tk 2,200,000. Many others await
the compensation.

Abdur Rouf, Headmaster if Hamidpur High School, is among them. "We are
waiting for the compensation," he said.

But, some 2,500 people of seven villages around Barapukuria are more
worried about their fate then the compensation. While visitng the
villages after the latest incident of cracks, the EP team found sign
of apprehension in the faces of villagers. They don't know what's
their fate, where will they go if the subsidence continues. Resentment
also prevails among them.

"The work for mining started in 1990. But, none told us that land of
the area might be subsided after extraction of coal. Even the mining
people didn't admit it until the first incident of tremor like
situation coupled with cracks at dwelling houses occured in 2006,"
said Ayesha Siddiqa.

Azizar Rahman, a school student from Moupukur, said that they had been
told that nothing more will happen after the first incident. "Later,
we heard that we'll be rehabilitated in some other places. But,
nothing so far... we are passing nights with apprehension and fear."

The fear pushed the people towards a movement. Young businessman
Ibrahim Khalil is the leader of the movement styled "Save Life Save
Resources".

"We are the owner of the land, but the government is extracting coal
from beneath the soil. And finally we are affected, it can't be... it
shouldn't be...," he said adding banks are not funding any pivate
project in the area.

Similar allegations wre made by Hawa Bibi of Moupukur and Mushfiqur
Rahman and Mahbub of Jigagari and many others.

Anwar Hossain Mondol, Chairman of Hamidpur Union Parishad, said they
extended all cooperations since beginning of the mining. "But,
concerned people never told us that there will be subsidence,
landslide and cracks once coal is extracted from the area."

"The land being affected due to the mining is not owned neither by the
government nor by the mining authorities. It's ordinary people's land.
So, the mining authority committed an offence by not informing the
villagers that what will happen to their land due to the coal
production," alleged the UP Chairman.

A senior official at Barapukuria Coal Mine Company Limited (BCMCL)
admitted that the allegation is justified. But, he said, works have
been carried out as per policy of the Petrobangla board. "That's the
reason that people were not aware of the consequences."

Another BCMCL official, also on condition of anonymity, said that the
company in 2006 had approaced the Petrobangla that entire area is
acquired and people of the area are rehabilitated to some other
places. "But, the Petrobangla board didn't approve it. Rather it
suggested to continue work with temporary compensation."

Many officials of the BCMCL think that the situation would not have
been that is today had the BCMCL's proposal was implemented. "Now the
situation is that the BCMCL and local people are in a face to face
situation," said an official.

BCMCL Managing Director Engr. Khurshidul Hasan however said that they
are trying to resolve the problem through dialogue with the local
people. He expects that an amicable solution will be possible by
discussions and they will be able to continue coal production.

"We can't take decision independently. We need approval from the
Petrobangla board. However, we completed survey work. We are hopeful
to overcome the problem," said the MD of the BCMCL.

After the latest incident of cracks at the dwelling houses, people
around the mine gathered in front of the main gate of the BCMCL and
staged agitation demanding compensation and halting the mining.
Incidents of ransacking were also reported.

However, Mostafizur Rahman Fizar, local MP and State Minister for
Environment and Forest along with other elected MPs from Dinajpur went
to the area and brought the situation under control in consultation
with local people. Follwoing their commitment, an Advisor to the Prime
Minister and two State Ministers recently visited the mine area. They
assured people of proper rehabilitation. But, they also made it clear
that none will be able to create obstruction to coal production.

However, Aminul Islam Bablu, newly elected Phulbari Upazila Chairman,
demanded earthwork after extraction of coal. He also demanded stoppage
of coal production by affecting cultivable land and evicting dwelling
houses.

The State Minister ruled out the demand and said coal production will
continue. People supproted him when he announced compensation and
rehabilitation in line with developed world.

The Advisor and two State Ministers, however, sought some time and
said production couldn't be affected during the period.

Bore Hole & Other Problems
A new phase of the Barapukuria, 1114, is ready for coal production.
The Chinese contractor completed all works for production from
February 5. But, they couldn't filled the two bore holes on pase 1114
due to obstruction from local people following the crack incident.

As production without filling the bore holes will be risky, the BCMCL
is trying to convince the local people. They are expecting that things
will be possible following the visit of the Advisor and State Ministers.

Presently there is another problem. The coal of Barapukuria is
self-combursion coal. So, if coal is not produced after completing the
work for phase there is apprehension of fire or any other kind of
accident.

Also, if the work is suspended, the government has to pay the Chinese
contractor. Moreover, if coal production is not possible, the
generation at Barapukuria power plant will be affected tremendously or
coal has to be imported for the plant.

History of Barapukuria
The project was implemented at a cost of US 194.91 million that
included $ 109.235 million suppliers' credit from China and 85.675
million local investment. Development and construction of the mine
began during the BNP regime in 1994 showing the production cost of per
tonne coal at $ 34.

The plan was that 64 million tones of coal, out of 390 million tones,
will be produced. But development work remained suspended for 30
months due to submerge of the mine area. The design was later changed
and work started afresh. The new target of production was set at 30
million tones.

The target was to start production in 2000, but production came to a
halt due to emission of carbon monoxide as soon as the production
started from phase 1110 in September 2005. Machinery of coal
extraction also went under the soil.

Initially the production cost of per tonne coal became $ 107. Already
coal extraction completed from four phases 1101, 1103, 1106 and 1109.
At present, coal is being produced from phase 1104 and production from
phase 1114 is scheduled to start from February 5. Also development of
phase 1105 is going on and production will start from April.

Initially selling price of per tonne coal was $ 60. Lately the price
for PDB has been increased to $ 70. So far, coal of Tk 900 crore has
been sold. Of the Chinese suppliers' credit $ 74 million has been
repaid. The production cost of per tonne coal in 2005-06 was $ 91.08.
The cost decreased to $ 84.4 in 2006-07. The cost will decrease further.

The total reserve of the mine is 390 million tonnes. The total lease
area for Barapukuria mine is 1,050 hectares, basic area 6.68 square
kilometer. The seam depth of coal is 118-509 meter. The total number
of seams is 6 and density of seam is 36 meters. The coalmine has been
developed in three square kilometer area. The land outside the own
area of the mining authorities is 650 acres. Total number of families
in the seven villages -- Kalupara, Barapukuria (partially), Bashpukur
(partially), Jigagari, Moupukur and Balram -- around the mine is 406
and total population 2,470.

A proposal was to acquire the land around the mine and proper
rehabilitation of the people in the villages. However, Prime Minister
Sheikh Hasina has announced that not only people own land in the area
but also who give labor will also be rehabilitated. The Energy
Ministry has been working on it. The government formed a high-power
committee. It will sit with representatives of local villages and
initiate steps for proper rehabilitation.

Future of the Mine
There are many technical questions about the future of the Barapukuria
coal mine, but one thing is certain that production will be possible
up to 2011. Experts however are saying underground mining was not a
right decision for Barapukuria.

Coal is now being extracted from first slice of 36-meter thick coal.
Extraction from first slice will be completed by 2011. But, there is
no strategic plan for extraction from the second slice yet.

On the other hand, India's industrial giant Tata had proposed to
develop an open cut mine in Barapukuria. Also, the committee that
worked for energy policy suggested an open pit mine in Barapukuria.
But, it has also been opined that it's not possible by the government.

People in the area however are now more keen on Prime Minister's wish
to rehabilitate the affected people.

Visit of Advisor & Ministers
Although the first incident of subsidence took place two years back,
none from the government went to the affected people. The Chief
Advisor at the fag end of his tenure asked for proper rehabilitation
of the affected people. He directed the Petrobangla on the matter. But
before any step was taken, the January 13 subsidence took place. And
this time the government responded.

Prime Minister's Advisor Towfique-e-Elahi Chowdhury, State Minister
for Environment and local MP Mostafizur Rahman Fizar and State
Minister for Energy Shamsul Haq Tuku visited the affected people on
January 27. Accompanied by Parbatipur Upazila Chairman Hafizur Rahman
Pramanik and Phulbari Upazila Chairman and anti-mine leader Aminul
Islam Babul they talked to locals.

In the three-hour dialogue, the local people expressed resentment for
what they said works carried out hiding the probable damage. Some
people said that the mining authorities did not enquire about the
damage. Local leader Ibrahim Khalil demanded that local people have be
provided with benefit out of the mine. Hamidpur UP Chairman Anwar
Hossain Mondol said they want to extend cooperation as in the past,
but safety of their lives and properties have to be ensured.

On return to Dhaka, they in a press conference said that the
government will take steps to resettle and compensate the affected
residents of villages covering an area of three square kilometres at
Barapukuria coal mine project in Dinajpur.

"We requested the locals to form committee and submit their report
about the compensation due to subsidence of their agricultural land
and crack occurred in their residential houses," said Dr Towfiq-e-Elahi.

He said that the government would take short-mid and long-term project
to compensate the affected people.

The government would start resettlement and compensation programs
directly after receiving reports from representatives of the affected
people, he added. The advisor said the ministry took the initiative
for going compensation following the directive of the Prime Minister.

State Minister for Power, Energy and Mineral Resources Shamsul Haq
Tuku said that the government wanted to continue coal extraction from
the project with the assistance of the locals.

"Due to negligence of the then BNP government, the affected residents
of Barapukuria couldn't get compensation. But, the present government
would take initiative to compensate them," he said.

We would do nothing at Barapukuria without consent of locals, he
further said.

"Country's economic growth is being hampered for want of power. For
this, coal extraction is a must," Tuku said.

State Minister for Forest and Environment Mostafizur Rahman said that
panic gripped the local residents following several cracks that
occurred at different buildings at a number of villages here.

First Bid for Confidence Building
Villages around Barapukuria are going to get uninterrupted power
supply. The electricity will be supplied under the REB distribution
system through express line. This will be first instance for a
community to get electricity outside a specialized area. Locals are
considering it as good wishes.

With change in state power, people around Barapukuria are hopeful.
Following the announcement of the Prime Minister, they are optimistic
that they will get compensation and will be rehabilitated. And the
success can also pave the way for success in entire energy sector of
the country. The Prime Minister has announced to develop a mining city
in the north. A major part of Bangladesh's energy future depends on
that. However, it has to be ensured that a part of the revene from the
mines gets practical benefit.

With contribution of Moksedul Sarkar Mukul (Phulbari), Wahidul Islam
Defence (Phulbari) and Mostafizur Rahman Bakul (Parbatipur).