"A Kansat like situation will occur if the government agrees to let Asia Energy to implement open pit method at Phulbari coalmine. So, I am urging the government to revise the deal again with Asia Energy and to ratify it in the parliament," Santu Larma also president of Bangladesh Adibashi Forum told a public rally at Phulbari in Dinajpur yesterday afternoon.

Thousands of indigenous people of Dinajpur, Rajshahi, Joypurhat, Rangpur, Thakurgaon and Panchagarh panicked by the prospect of an open pit coalmine at Phulbari gathered at the rally where Santu Larma was chief guest.

They protested the plan of setting up the coal mining plant at Phulbari where Asia Energy Corporation (AEC) intends to use the open pit method.

The protest rally was held on Phulbari Government College ground where speakers urged the government to cancel the coalmine deal with Asia Energy. The meeting was organised by National Indigenous Council, an organisation of indigenous communities.

The speakers told the rally that at least five lakh people including 50,000 indigenous people will be dislocated if the mining plant goes into operation.

The affected area might lose natural vegetation and the water level might fall bringing adverse effect on agriculture, which would lead to food shortage.

The area might lose fish resources in its ponds as the marshlands would fall under the mining area, the speakers said.

Though its damages might not be visible in the short-run, its long-term harm could be irreparable, the speakers alleged.

Terming the contract against the interest of the country, they said extraction of coal in open pit method will cause damage to the environment of the whole area and will also hinder economic activities of the area.

The speakers also said according to the agreement, Asia Energy will extract coal for 30 years and will export two thirds of the quantity.

The company will hold the ownership during the mining period while Bangladesh will receive only six percent royalty from it as well as taxes and duties, they said.

The rally chaired by Anil Marandee, where Prof Mezbah Kamal, Fazle Hossain Badsha, and Pankaj Bhattacharya spoke.

Santu Larma in his speech alleged that neither BNP nor Awami League paid heed to indigenous peoples' demands for constitutional rights for indigenous communities, separate ministry for them, and a land commission, rather they prefer to deprive the communities though they are citizens of the country.

Larma also alleged that Forest Department of Dinajpur grabbed at least 26,000 acres of indigenous communities' land in Phulbari, Birganj, Birampur, Parbatipur, Nawabganj and Dinajpur Sadar upazila in the name of forest development financed by Asian Development Bank.

Larma urged the indigenous people to protect their ancestral places with their last drop of blood.

When contacted, an official of Asia Energy, Ahsan Habib Deepu, told The Dailly Star that at least 5,000 indigenous people will be relocated if Asia Energy sets up the coalmining plant.

The project will maintain the world's highest environmental standards, and any negative impact on the environment will be managed with high priority, he said.

Local people fear that more than 4,70,000 people of Phulbari, Nababganj, Birampur and Parbatipur upazilas, including 50,000 of the indigenous communities, will be displaced. Asia Energy, however, predicts the total number to be around 50,000.

Asia Energy Corporation (AEC) sources said the affected people will be relocated locally.

AEC is now awaiting an agreement with the government to develop the Phulbari open pit coal mine at an expense of US$1.6 billion.

The life of the mine will be 30 years and it has a reserve of around 572 million tons of coal, an AEC source said. The project will create 10,000 jobs.

If the Bangladesh government signs the deal, the company will go into production in 2008, and it believes it will extract 15 million tons of coal a year for export and for use in domestic coal-fired power plants.