ARTICLE
Draft Coal Policy: Is It A Policy?
 
Khondkar Abdus Saleque

Usually policy is a guideline. It deals with major issues and gives broad based directions which should be followed while dealing with the related matter. It is not essential that it will make mandatory provisions and binding requirements. Then it no longer remains policy, it becomes manual. The draft coal policy that is in the website in apparent look seems to be more than a policy. 

Draft document has dealt with several issues some related and some irrelevant. If this policy is directed to let private sector invest in this sector we are afraid it is not a proper one. It will discourage investment for this investment hungry sector and as the public sector lack managerial as well as technical capability to explore and exploit coal it there may not be any meaningful exploration at all.

In the summary there is mention about two experts who opined on the initial draft prepared by IIFC as it was sent to PM office. The two BUET professors are not coal experts or energy experts in any case. In our knowledge there are very few or rather no coal expert in Bangladesh at this moment who can give opinion on the draft prepared by IIFC and incorporated the comments and observations of various stakeholders in a very lively and interactive daylong seminar. Mere theoretical knowledge and no practical on the job experience in mine development and management does not make one a mining expert or energy expert. When the document returned to EMRD it formed a 5-member committee. Wonder how many line professionals were in the committee. If this was bureaucrat dominated then original draft of IIFC must have lost its virginity by this time.

The draft mentions about 50 years’ energy security of Bangladesh. Will coal alone secure our energy for 50 years? What happened we did not have any local coal till last few days? Did not we survive without it? We are now mostly reliant on gas. Coal will only relieve the pressure on gas. From 2015 coal may gradually get bigger in proportion in the energy basket. But gas will still remain the major contributor. We will definitely strike more gas. We may also import gas from Myanmar. We will do that in any case as coal will not make fertilizer and Bangladesh will also need fertilizer for food security. We should target for 2030 power for all as we have possibly fallen behind 2020 vision. So for the time being we should plan for twenty years only.

Draft coal policy favors public sector for major mining responsibility. Our public sector Petrobangla has failed miserably to mine our coal . We have virtually no mining capability. It will not grow so soon. So giving preference to public sector will be waste of time. We should rather create incentive for private sector local and foreign to come and explore here for our own benefit. Creation of coal bangle is another waste of time. It is not necessary. The GSB should be strengthened and the regulatory functions should be left with Mining Bureau. We must introduce Mining Engineering course in BUET and Rajshahai University as suggested. Mining geology must be also studied seriously in other universities. We should recruit fresh mining, mechanical, electrical engineers and geologists and send them abroad for on the job assignment in active mines to learn.

Draft report quoted from Nexant prepared Power Sector Master Plan Update -2006. It says that 41,899 MW power will be required in 2025. This is possibly a very high expectation. We may settle for 20,000 MW for 2025 considering a GDP growth of 5.2 and should try to achieve that. 

Declaring the North-Western part of Bangladesh as a Coal Zone is a very good proposal. It must be accepted. The deprived cousins of that region deserve this very richly. This will create balanced development The monga affected people of the region will get employment.

The mining method will be determined based on geology, recovery required in the safe and environment friendly way. As long as the relocation and rehabilitation of affected people are not compromised and the people get their income regenerated there should be any problem. Open pit mining will ensure greater recovery of resource which is urgently required. The management of surface and subsurface water should also be given due attention.

The issue of royalty while considering export as shown in the draft as minimum of 20% appears to be too high. We may rather establish a formula which will have a floor royalty of 10% and a ceiling of 15%. More than this may discourage any major mining company to invest in Bangladesh. The export can be only be allowed if we local market can not consume the economic mining volume. 

Compulsory mine mouth power plant for a start is OK but then many mining companies may not have power plant vision or many power developers may not like to tie up with mining companies. Government must see that enough coal consuming industries grow up and consume most of the coal.

It is a very good idea that mining companies to let out 25% share to local stock exchange. Participation of Bangladeshi citizens will benefit the country from its resource.

Coal gasification and coal liquefaction as included in the draft must be encouraged. Coal Bed Methane can also be tried. But we must be careful about efficient burning of coal. We must be very careful about greenhouse gas emission and global warming. In most coal dominated economy it is a big problem. A thickly populated Bangladesh can ill afford the indiscriminant burning of coal. Coal power plats must deploy clean coal technology

The draft coal policy in its present shape may need the ironing in areas identified to make it acceptable for work. Our final target is to get the investment, get the mines going, so that our power sector and industries do not suffer from insecurity. We have to go for energy import in any case today or tomorrow. Coal and gas are nonrenewable and will exhaust someday. Apprehending of the exhaustion we can not let it below ground for ever. We must think of our immediate need and try to meet that in the most efficient way.