The United States economy ended the year by adding 103,000
jobs in December, the Labor Department said Friday, a number
that missed expectations. But the unemployment fell to 9.4
from 9.8 percent.
The agency also revised estimates from the two earlier
months, now saying that 210,000 jobs were created in October
instead of 172,000 and 71,000 in November, instead of 39,000.
As with previous months, almost all of the gain in December
-- 113,000 jobs -- came from private companies.
Wednesday, February 23, 2011
New York State Takes Control of Nassau's Finances
A state oversight board has seized control of Nassau County's
finances, saying the wealthy and heavily taxed county had
nonetheless failed to balance its $2.6 billion budget despite
months of increasingly ominous warnings. It was only the
second time a county had been taken over by New York State.
The 6-0 vote on Wednesday afternoon by the Nassau County
Interim Finance Authority gives it veto power over the
county's budget, labor contracts, borrowings and other major
financial commitments.
The board cited a deficit that reached nearly $350 million at
one point last year but that was not fully closed, it said,
despite assurances to the contrary by the county executive,
Edward P. Mangano, a Republican.
finances, saying the wealthy and heavily taxed county had
nonetheless failed to balance its $2.6 billion budget despite
months of increasingly ominous warnings. It was only the
second time a county had been taken over by New York State.
The 6-0 vote on Wednesday afternoon by the Nassau County
Interim Finance Authority gives it veto power over the
county's budget, labor contracts, borrowings and other major
financial commitments.
The board cited a deficit that reached nearly $350 million at
one point last year but that was not fully closed, it said,
despite assurances to the contrary by the county executive,
Edward P. Mangano, a Republican.
After Protests, King Abdullah II of Jordan Dismisses Government
Jordan's Royal Palace says the king has dismissed his
government in the wake of street protests and has asked an
ex-army general to form a new cabinet, the Associated Press
reports.
The move by King Abdullah II comes after thousands of
Jordanians took to the streets -- inspired by the regime
ouster in Tunisia and the turmoil in Egypt -- and called for
the resignation of Prime Minister Samir Rifai, who is blamed
for a rise in fuel and food prices and slowed political
reforms.
government in the wake of street protests and has asked an
ex-army general to form a new cabinet, the Associated Press
reports.
The move by King Abdullah II comes after thousands of
Jordanians took to the streets -- inspired by the regime
ouster in Tunisia and the turmoil in Egypt -- and called for
the resignation of Prime Minister Samir Rifai, who is blamed
for a rise in fuel and food prices and slowed political
reforms.
Suit Says Mets Owners Ignored Warnings on Madoff
A lawsuit brought by the trustee for the victims of Bernard
L. Madoff's multibillion-dollar Ponzi scheme accuses the
owners of the Mets of being so enamored of the enormous
profits they earned while investing over decades with Mr.
Madoff that they ignored repeated and specific warnings that
he might have been operating a fraud.
The lawsuit, unsealed in federal bankruptcy court in
Manhattan on Friday morning, contends that the team's owners,
Fred Wilpon and Saul Katz, used the profits from their
investments in Madoff to establish personal fortunes, create
dozens of family trusts and financially fuel their array of
businesses, from the Mets to real estate to the creation of a
cable sports network. At various times over the years, as
their investments only widened and deepened, they were blind
to what the lawsuit calls a litany of alarms sounded by those
close to them, by fellow investors and by financial
institutions.
L. Madoff's multibillion-dollar Ponzi scheme accuses the
owners of the Mets of being so enamored of the enormous
profits they earned while investing over decades with Mr.
Madoff that they ignored repeated and specific warnings that
he might have been operating a fraud.
The lawsuit, unsealed in federal bankruptcy court in
Manhattan on Friday morning, contends that the team's owners,
Fred Wilpon and Saul Katz, used the profits from their
investments in Madoff to establish personal fortunes, create
dozens of family trusts and financially fuel their array of
businesses, from the Mets to real estate to the creation of a
cable sports network. At various times over the years, as
their investments only widened and deepened, they were blind
to what the lawsuit calls a litany of alarms sounded by those
close to them, by fellow investors and by financial
institutions.
New York Congressman Resigns After Internet Postings
Representative Chris Lee of New York, caught in the midst of
a scandal involving a shirtless photo he reportedly sent to a
woman on the Internet, has stepped down, according to a
senior Congressional official.
Mr. Lee, a Republican, notified the Republican Speaker of the
House of his decision in a letter he sent this afternoon
after the scandal erupted.
a scandal involving a shirtless photo he reportedly sent to a
woman on the Internet, has stepped down, according to a
senior Congressional official.
Mr. Lee, a Republican, notified the Republican Speaker of the
House of his decision in a letter he sent this afternoon
after the scandal erupted.
Tuesday, February 22, 2011
Coal Policy of Bangladesh
Draft
Coal Policy of
Energy and Mineral Resources Division
Ministry of Power, Energy and Mineral Resources
Government of the People’s Republic of
Subject: Report of the Committee formed for giving recommendation after examining the opinion of Prime Minister’s Office on draft coal policy of
On 2005 government took the initiative to regulate the “Coal Policy” with the view to ensure the country’s energy demand and create the opportunity to utilize the country’s coal asset as a commercial energy. Primarily by the request of Energy and Mineral Resources Division Petro Bangla has delegated the responsibility to formulate the Coal Policy to IIFC. In the middle of 2006 the IIFC has submitted a draft coal policy to Energy and Mineral Resources Division by analyzing various recommendation and opinion obtained from inter-ministerial meeting, seminar, symposium, stage-holders, journalists, specialists, donor organizations and investors.
The then Power, energy and Mineral Resources Minister submitted the draft coal policy to the Prime Minister for his kind approval to raise the policy in the cabinet committee for further review and analysis.
After taking the two specialists opinion on that policy the draft has sent again to the Power, Energy and Mineral Resources Ministry with the direction that to include those opinions in the draft, if those are relative. To include those opinions in the draft as directed by PMO the Energy and Mineral Resources Division formed a five members committee, where Additional Secretary of the division held the chair.
The committee discussed with Professor Md. Nurul Islam and Professor Dr. Md. Abu Taher of
Ø In the final draft of the policy there are 12 chapters. Among them the following matters have got the priority:
Ø To secure the energy for country’s use for 50 years, a Master Plan for coal sector has been suggested.
Ø If new gas field can be discovered after 2011 the scarcity of gas will be felt and dependency on coal as a substitute energy will be increased. In the draft priority has been given to government sector. But in future to overcome the scarcity of energy and to ensure the energy security in case of emergency government has the authority to take the decision to allow the private sector to develop the coal mine.
Ø To ensure the demand of electricity, how much electricity will be produced and how much coal will be used in this purpose will fixed by the guide line of Power Sector Master Plan Update 2006 prepared by Nexant. According to this survey it will very difficult to run only the coal based electric centers with the current store of coal up to 2035. There will be no opportunity to export the coal.
Ø It is also included in the draft that mandatory electric center should be establish by the lessee near by area of the coal mine to fulfill the demand of electricity.
Ø The license hold/ Lessee should conduct the Environmental Impact Analysis (EIA) as per the Environment Restore Manual by Equator Principal/ World bank and the rules and regulation of Directorate of Environment.
Ø The valuable minerals such as Kaolin, Glass sand and other minerals that can be found during the development of coal mine should be use properly.
Ø For maintain transparency tender process will be implicated in giving lease of coal mine. Coal Development Scheme, land recovery and rehabilitation plan- these three matters should be attached with the tender documents. To measure the bad impact on environment and other related matter during the development of mine, a report by a team of researcher should also be included.
Ø A formula in fixing the rate of loyalty of exported coal is included. The rate of loyalty and re-fixation will be adjusted with the ups and down of the price of coal in the world market. But the rate of loyalty cannot be below 20% if the price of the coal decrease.
Ø To ensure the participation of Bangladeshi people the lessee should float 25% of the shares in public.
Ø In terms of fix corporate tax, income tax and VAT & other taxes rules and regulation of
But in this regard after approval of the draft coal policy, the clauses of Mine and Mineral Resources Regulations of 1968 should also be amend.
Introduction:
Natural gas is the prime energy resource in our country. The gas is fulfilling 73% of commercial energy need. 50% and 12% of the produced gas is being used in electricity and fertilizer production respectively. 90% of electricity production is dependable on gas. According to the projection of December 2006 the remaining reserve of proven and probable natural gas in
Perspective and current situation:
The interest of the country should be strongly considered if any foreign investor wants to invest in implementing the coal project. According to the Power Sector Master Plan Update 2006 by Nexant the electricity demand will be 19,312 MW if the GDP will be 5.2 on 2025 and if GDP will be 8, electricity demand will be 41,899 MW. On the other hand GDP is shown 7.9 in Wood and Mackenzie’s Gas Sector Master Paln 2006 and in High Case.
The coal industry of
2.1 Goals and objective of Coal sector:
Coal policy will be regulated by the Mine & Mineral Resources (Control & Development) Law 1992 and Mine & Mineral Resources Regulation 1968 (recently amend). The goals and objectives are:
- Development and progress of coal sector is essential for the greater interest of people of
- To declare the probable coal reserve area of nor-west of Bangladesh as “Coal Zone” and to identify these zones as probable coal-based electricity generation area, as it can be explore as the main steam of nor-west economic power.
- Extensive search activities will be conducted by the Directorate of Geological Survey to explore new coal mine.
- The activities of Mineral Resources Bureau should be increase to explore and control of coal industry.
- Gradually ensure the use of coal as substitute energy source and to reduce the dependency on gas and imported petroleum to generate electricity.
- To establish appropriate institution and infrastructure for the development and management of coal industry. In near future to create expert man power for this sector.
- To ensure the highest capacity of production/ exploration the coal mines in nor-west of
- Proper communication infrastructure should be developed to ensure the proper marketing of the coal.
- To explore the possibility of commercial use of Mithen, which should be degasificated before the collection of coal, at the level of mithen-mixed coal.
- To explore Pit coal and encourage to establish the pit coal based electric plant.
2.2 Ensure the security of Energy by developing the coal sector:
According to the projection of Power Sector Master Plan Update 2006 by Mnexant if the GDP can be increase at 8% within 2005-2025 total coal for coal based power plant will be needed about 450 million ton. If it is considered that on 2025 for generate 32, 837 MW electricity total 75 million ton coal will be needed, then for next 5 years 375 (5 x 75) million ton and for next 10 years 750 (10x75) million ton i.e. within 2005-2030 total 825 (450 + 375) million ton and up to 2035 1200 (450 + 750) million ton coal will be needed for only generating the power.
Currently 4-coal mines have the total In-situ proven geological reserve of 1168 million ton.
- Highest 90% of the coal can be collected if the open dig process can apply i.e. about 1050 million ton coal can be withdrawn. According to Nexant with this reserve of coal up to year 2033 the power can be generated.
- 20% of the coal can be collected if the underground mine process, i.e. about 235 million ton, by which electricity may produced up to year 2022.
- It may possible to withdraw 788 million ton of coal from low depth coalfield by the open dig process. On the other hand 60 million ton coal withdraw may possible from medium depth coalfield by underground mining. That means from 4 coal mine highest 848 million ton can get. With this coal it is possible to generate electricity up to year 2030.
The main motive of this policy is to ensure the country’s energy security by the rapid development of the coal sector. The main objectives are:
Ø To reduce the gas-based power generation, start regenerating power by coal-based power plant.
Ø Take necessary measures to start the exploration in the new areas.
Ø Implement the Coal Sector Master Plan by engaging the modern technology and following the regulation of health, security and environmental factors. Develop the coal fields to increase the rate of withdrawing coal.
Ø Encourage the private investment for the exploration and development of coal sectors alone with the government investment.
Ø To take lawful and administrative initiative in deducing the bad impact of environment and to recover the land of coal fields.
Ø Encourage the private and government organization in establishing the coal-based power plant.
Ø Encourage the establishment of coal-based industries.
Ø Develop the capacity of generation of power from the coal areas to the power user areas.
Ø Reform to establish the appropriate institution and infrastructure for management of coal sector.
Ø To ensure the participation of Bangladeshi people 25% of the shares should float in public in terms of private investment in the coal sector.
3. Commercial use of coal in view of energy security:
3.1 Coal as commercial use:
Every initiative will be taken to use the coal as a substitute commercial energy. The pressure in natural gas should be gradually reduced and should encourage establishing the coal-based power plant, industries and reducing the dependency on imported petroleum.
Many countries of the world use coal to generate the 40% to 60% of the power. From this view
For the domestic use coal should be encourage than Kerosene, LPG.
3.2 Master Plan of Coal Sector
To meet up the increasing demand of energy the Master Plan will be implemented by the proposed CoalBangla and BMD with a view to ensure the energy security for 50 years for the country. In the master plan the main points are:
Ø Role of different government and private organization who are engaged in controlling coal fields, exploring mine areas, financing, restoring environment and social factors.
Ø Analysis of every organization’s profit and facility in using the coal.
Ø Nature of every organization’s affiliation.
Ø Income of government from rent/fee along with interest of country.
Ø Development of
Ø Necessity of government investment.
3.3 Control in extracting coal:
By considering the current reserve of coal mines, implementation of Coal Sector Master Plan for next 50 years. JSB should be modernized in exploring the prospective coalfields. National interest should be considered above all in issuing the license of exploration and mine leasing.
3.4 Other use of coal
As per the Master plan, not only the power generation sectors but also other sectors will be encouraged.
3.4.1 Coal as substitute energy:
As coal can be transported by boat, rail and truck to any places of the country, so the Lessee should contribute in poverty elevation by encouraging the use of coal and small coal based industries in the village areas. Lessee and intending organization should submit such proposal to the Bureau.
3.4.2 Small power plant:
Encourage establishing small coal based power plant in the offshore areas of the country.
3.4.3 Coal dust
Encourage the use of coal briquette and coal cake as a substitute of wood and imported domestic fuel. Encourage the private and social organizations in establishing the environment friendly industry to manufacture coal briquette and coal cake by using the coal dust.
3.4.4 Support Services
Engage the local organization in building infrastructure and other activities during the development of the coal fields. Give priority to the local institute for other support services during technology transfer.
3.4.5 Steel and re-rolling mills
There are so many gas-based re-rolling mills in the country. Measures should be taken in converting those gradually to coal-based mills.
3.4.6 Coal gas
Encourage in investing to produce cock, medicine, insecticide from cola gas and coal gas during manufacturing cock.
3.4.7 Coal liquid, energy fuel and other product Feasibility study will be conducted regarding this related product. Investor should be encouraged in investing to produce petrol, diesel fuel oil by liquating the coal and reduce the import of petroleum. Also should encourage to invest in producing colour, refinery, detergent, jet-fuel, lubricant oil, LPG, Kerosene, plastic, synthetic rubber, waxes, synthetic fibers & dye, synthetic natural gas, raw materials for pharmaceutical industries from liquid coal.
3.5 Management of Coal Export
But if the country can be able to explore new gas field/coal field, in that case after keeping the reserve for 50 years for the country excess reserve of coal can be exported.
4. Infrastructure Development
4.1 Coal Zone
The coal mine in nor-west part and probably coal mine of
Long-term plan will be taken in developing the coal zone and not to evacuate the large number of inhabitants in this zone to ease the development of the coal sector. The most considerable points are;
Ø Infrastructure such as rail lines, road, electric flow, port, water transport, cannel.
Ø Social infrastructure such village, city, educational institution, industry, commercial and service oriented institute.
Ø Usages sample of agriculture land.
Ø Water flow of cannel and under ground.
Ø Bio-diversity matters of the proposed areas.
4.2 Survey of coal zone:
Government organization (Coalbangla/BMD) will conduct the survey for the overall development of coal zone. To implement the said survey the following organization will extent their assistance:
Ø In implementing the plan for issuing license for exploration and lease- Bureau of Energy Resources.
Ø To identify the probable coal mine: JSB
Ø Over all development of coal sector: Coal Bangla (government owned organization)
Ø Power generation, flow and use: Electricity Department
Ø Rail communication:
Ø Road communication: Roads and highway department
Ø River port & river way:
Ø Coal export: Port authority
Ø Related all city planner
Ø City development, irrigation and uses of land: Water resources ministry, Agriculture ministry and ministry of land.
Ø To analysis the impact of cannel or underground water on mine exploration: Water resources ministry/ Borandra authority, BUET, Hydrogeology and Environmental Geology of Geology Department, Dhaka University, Rajshahi University, Jahangirnagar university, Institute of Water Modeling and Institute of Flood Management.
Ø Impact on Environment: Directorate of Environment
Ø Appropriate land management: Ministry of Land
Ø Related other ministry/secretariat/director/institute
For the development of coal zone the communication system will be developed. As the coal based power plant established beside the coal mine so initiative will be taken to declare this area as the main area for generation of power.
Infrastructure will built up by the government and privet initiative in implementing the business plan and collect reasonable price from the users.
Energy Security
Many countries in the world have between 40% to 60% or more of their electricity generation through coal. The goal set in the Policy is to ensure the energysecurity of the country by developing the coal sector rapidly. Within the next 20 years, the country plans to reach a sustainable coal production level of 40 Mtpa and a generation of 5000 MW coal fired
electricity. Considering the present recoverable coal resources of
allowed to export coal linked to domestic use of coal. This proportion will be one to one, local use to export, except for the first ten years, when the proportion will be one to two.
Environmental Safeguards
Coal mining has the potential to damage land, displace people and cause crop losses. In such perspectives, strict adherence to environmental mitigation measures and reclamation procedures are to be adopted. Appropriate institutional framework with adequate manpower is to be developed for managing the coal industry. The DOE will to review all their laws, rules and regulations with reference to the exploration, production, exploitation, storage and transportation of coal, reclamation of land etc, and identify the areas that need improvement. The Licensee or the
Lessee will work closely with local communities at all stages of the planning and development processes, to ensure that community concerns are addressed quickly. Under the Policy, the Lessees will assume all environmental costs. In order to further mitigate environmental risks, the Government is to engage an intensive research team, over the next 5 years, to assess the long term impact to the environment, arising from Opencast Mining. The opinions of the research team are to guide the nation on the long-term continuation of the type of mining method to be used in the country.
8. Investment In Coal Sector:
8.1 Infrastructural & Institutional Development:
There should be investment in the following sectors other than coal search, development and production—
a. Standardization and Quality control by GSB in primary coal search, information management about the coal search and technical management.
b. Building a Coal Centre to increase the efficiency in the coal searching site.
c. Research related to the development of Coal Production.
d. Institutional development of Coal Bureau, GSB, Petro Bangla and other governmental institution related to coal production.
e. Development in technologies related to Coal Bed Methane, Coal development and Coal gasification.
f. Alleviation of Poverty by using coal in generating electricity and household in the rural areas.
8.2 Investment:
Though government sector is given a preference in Coal searching, production and marketing, private sectors are also welcomed as they can provide necessary and emergency power and energy solution which is required for the Coal production. Besides, any joint venture of Bangladeshi and foreign enterprises are also subject of approval if it is properly enlisted with Stock Exchanges of Bangladesh.
Bangladesh government will specially call for Infrastructural Development, Increase of Institutional Efficiency and Maintenance of Environmental and Ecological Balance from the donors of the country when they are interested in investing in Coal sector.
8.2.1 Assignment and Handover of Lease:
Assignment of the lease by the investor has to be done by following the proper procedure stated by the bureau and the assigned party cannot inexperience in this sector neither it can be bankrupt or subject of poor capital management. In the stated case, the assignment of the lease will be ineligible.
8.3 Research of Coal Basin:
8.3.1 Search of Coal basin by a Private Entity:
According to Mine and Mineral Resource (Control & Development) Act 1992, the Mineral Resource Development Bureau will open international offer for the EOI from foreign enterprises. In this case Bureau will emphasize on the following judging criteria— previous experience in this field, capital investment of the company, nature of the company, whether it is properly enlisted with acts of the respective country/countries.
8.3.2 Discovered Coal Basin:
GSB will operate the primary searching process in a probable Coal location and it will classify that zone into several other sub-zones according to the availability and reserve adequacy of Coal. The whole process will be financed by the government and GSB has the authority to call for international EOI and giving a lease for definite sub-zone(s) to a company based on the company experience in the field, capital investment and the legality.
8.4 Selecting the Investor:
Selecting the investor will be done by an open and transparent competition through Tenders. This tender notice will be published in the Newspapers and Websites. The bidders have to be abide by the Coal Act, Paragraph 10.2.1 and 10.2.2 and only in this condition the Highest and Best bidder will be given the lease for a definite Coal Basin or one or more sub-zone(s) in a Coal Basin.
8.5 Miscellaneous Issues:
8.5.1 Pit Coal:
For searching Pit Coal Paragraph 8.3.1, for already discovered Pit Coal basin Paragraph 8.3.2 and for selecting investor in Pit Coal basin Paragraph 8.4 will be applicable.
8.5.2 Coal Bed Methane:
If collection of Coal from a Coal bed enriched with Methane is risky then collection of Methane before collecting Coal is compulsory.
If Coal collection is financially non-profitable but Methane collection is profitable then any private investment or joint-venture to collect the Methane will be encouraged and the investor will be select through an Open Tender.
If the coal bed is only used to collect the Methane then it will have to follow the Petroleum Act edited ‘Petroleum Agreement’ for Coal Bed Methane.
8.5.3 Other Mineral Resources:
If the Coal Collection process discovers other precious minerals like – White Clay, Silica, Mottle Clay, then the Lessee has to apply separately for collecting other mineral resources from the same minefield. Otherwise Mineral Resource Development Bureau can offer EOI to collect other resource(s) through an Open Tender.
8.5.4 Underground Coal Gasification:
When coal collection from a coal basin will be unprofitable then In-Situ coal gasification will be under consideration and Government and other enterprises will be encouraged to complete the job. If gasification turns out to be profitable then the whole operation will have to be followed ‘Petroleum Agreement’ under Bangladesh Petroleum Act 1974 (Updated).
8.6 Coalfield Development and Budget:
To obtain a lease to collect coal, an investor has to submit the Mine Development Scheme and Budget and the source of this budget. The scheme is amendable on the basis of progress in implementation plan and only if the final dateline remains unchanged. In addition collection of methane has to be environmentally and ecologically safe and sound.
Lessee has to submit up to date progress report to BMD about the coal searching, collection, production, marketing and drilling regularly. This data and information’s copyright will be owned by both the lessee and BMD. And when the Lease/License will be transferred or canceled by the lessee then their right to this data and information will be withheld.
9. Coal based Power System:
9.1 Establishing Coal Based Power Plant:
By the end of the year 2011, there will be a scarcity of Gas in the currently operating power plants and fertilizer factories. So, the master plan for alternative resource to generate Power in the industrial sector should be developed from now on.
According the statistics, there are almost 1170 Million Tons Coal in Bangladesh. 90% of this coal can be collected by Open collection system and 20% will be collected if we follow the Underground collection system. So, coal can be a very important input to produce energy in future.
9.2 Compulsory Coal Based Power Plant:
Establishing a coal based power plant in the mining area is a compulsory pre-requisite for the lessee to encourage the coal based power generation. In addition, the lessee has to go under a contract to supply power in the National Energy Grid in a competitive price.
9.3 Coal Based IPP:
The Development of Coal Based Energy System has to be enriched by using the coal collected from different areas of the country. If the government power generating firms are unable to use coal as input for energy then building coal based IPP in the mining areas will be encouraged in a mandatory manner. Following regulations will be maintained—
a) Local power service provider i.e. Power Development Authority or any other government organization will call for an open Tender for IPPs.
b) Lessee and IPP investor will sign a contract where the price of the coal will be denominated in Bangladeshi currency.
c) According to the Bangladesh Private Energy Production Act 1996 (Updated in 2004) Coal based IPP will be treated like other Private Investor in Power sector.
9.4 Power Generation in Government Sector:
Bangladesh Power Development Board has developed a Coal Power Station of 250 M.Wt capacity in Bara Pukuria, Dinajpur and is planning to establish similar power station in different coal enriched areas of Bangladesh. Some key features in this sector are—
a) Power Development Board and lessee will sign a contract for supplying the coal.
b) Power Department and Lessee will select the price of the coal through negotiation.
c) Government can take Coal in stead of Royalty if it wishes.
9.5 Captive Power Production:
Coal based Captive power plant can be established only for captive/personal uses. If there is a surplus, then the plant can supply power to the National Grid in a price according to its own manifesto or in a price set by a bilateral negotiation between the Power Development Board and the Captive power plant owner.
10. Commercial Aspects:
10.1 Price of the Coal:
Bureau will publish the price of Exportable Coal Price( ECPt ) according to the quarterly International Coal Price Index average in its website and other news media. For local usages coal price will be ECPt X 0.7.
10.2 Royalty:
According to the Mine and Mineral Resource Act 1968 ( Updated), Rule 39 C, a lessee has to pay 3% of the probable mine development scheme before the lease is guaranteed by the board. If the final mine development scheme has any budget other than the proposed one, then proper adjustment should be made. Lessee will give the government royalty on a quarterly basis. Government can take either Coal or Cash as royalty.
10.2.1 Royalty of Exportable Coal:
In Royalty for Exportable Coal there are 2 components, Non changeable and Changeable and it is expressed by the following formula—
R t = FRC + (ECP t – ECP b) X 10 / ECP b
Here,
- R t is Rate of Royalty for exportable coal which is not less than 20%
- FRC is the Non Changeable portion of the royalty which for open mine and underground mine will be at least 10% and 8% respectively.
- (ECP t – ECP b) X 10 / ECP b is the Changeable portion of the royalty and it cannot be Negative.
- ECPt will be the average International Coal price for the last quarter in US Dollar.
- ECPb will be US$25.
The formula for 3 monthly computation of royalty for exportable will be—
QRP = R t X EC q X [ ECP t ]
Here,
- QRP indicates amount of 3 monthly royalty payable in U.S. Dollar.
- ECq means 3 monthly amount of exportable Coal.
In the formula, the QRP of Steam Coal and the QRP of Cocking Coal will be calculated with the appropriate number of ECPt, ECPb and ECq. If the ECPt of Cocking Coal is not available then calculated as 50% more of the ECPt of Steam Coal.
10.2.2 Royalty of Locally Used Coal:
The amount of royalty for locally used coal will be calculated by the following formula:
QRP = R X LUCq X Coal Price
Here,
- QRP indicates 3 monthly amount of royalty in Bangladeshi currency.
- R indicates the royalty of locally used coal which will be 20% at least.
- LUCq indicates the total amount of coal in Ton used locally.
- Coal price for local usage will be 0.7 X ECPt
10.3 Marketing of Coal:
Lessee will select Distributors to market coal in the whole country. These distributors will collect coal on Weight basis and transport them to the different market centers in the country. Small users of coal will collect coal from the distributors according to their demand.
Lessee has to process the coals to match the classification of different types of coal made by the Bureau before marketing.
Subscribe to:
Posts (Atom)