Asia Energy officials at Phulbari however claimed that the number of such structures would not be more than 4,000.

"Twenty thousand buildings, mostly of which are residential and commercial ones, will disappear if the open-pit mining project is implemented," said Shahjahan Ali Sarker Putu, chairman of Phulbari Municipality.

But Field Manager of Asia Energy that is implementing the project Ahsan Habib Deepu said these buildings would not be dismantled at one go. "The mining will progress in phases. When mining in one part of the area is complete, miners will move to another location. The abandoned part of the mine will then be rehabilitated.”

About 1,000 telephone lines of the BTTB will also be shifted from the mine area, sources said.

According to the National Committee to Protect Oil, Gas, Mineral Resources, Electricity and Port, 4,70,000 people, including 50,000 indigenous people, of 100 villages in Phulbari upazila, its adjacent areas and part of the upazila town will have to be relocated for the mining. More than 4,000 people live in each village.

Disputing this, Asia Energy claims that only 40,000 people, including 2,000 indigenous ones.

According to district land office, Phulbari upazila spans over 229.55 square km and the upazila town 16.03 square km. About 207 square km of land in the upazila is cultivable and about 23 square km of land fallow.

Asia Energy however claims that Phulbari upazila covers 16.1282 square km while Phulbari town spans over 3.5289 square km.

The national committee says the company gave these false statistics to get the deal for the mining project.

According to the district forest department, more than 4 lakh trees, including eucalyptus, shishu, neem, mango, jackfruit, blackberry, coconut and bamboo will have to be axed if the project is implemented.

Asia Energy admitted about 10 km of broad-gauge rail track in Phulbari needs to be relocated and the course of the river Punarbhaba will be changed.

Moreover, the mining project will cause decline of underground water level in Phulbari and adjacent areas, resulting in extinction of 3,200 acres of forest, the national committee leaders said.

Fifty educational institutions, including six colleges and 18 madrasas, out of 169 educational institutions in Phulbari and its adjacent areas will also have be dismantled. Besides, 171 mosques, 13 temples and other religious establishments will also be removed, sources mentioned.

Environmentalists have decried granting of the forestland and densely populated area for coal mining purposes. It would set a bad example and others would also demand such areas for various purposes on the plea of community welfare, they observed.

"We know the coalmine project will be implemented here in our ancestral place, which will destroy the total area. But how to save Phulbari town having a heritage of 300 years is our main concern," said Abdul Hamid, a local.

Under the coal development policy, 1993, the government will get only six percent royalty from Asia Energy and different types of taxes. In terms of money, this will stand at $200 million if the company produces 15 million tonnes of coal a year.

The company estimates that Phulbari reserve has 572 million tonnes of high quality coal, enough to generate 8,000 MW power for 30 years. The coal is located at varying depths of between 120 metres and 300 metres.

If the government approves the plan within this year, Asia Energy can start production of 1.5 million tonnes of coal in fiscal 2007-08, six million tonnes in 2008-09, nine million tonnes in 2009-10 and finally 15 million tonnes from 2011-12.

It will employ 1,200 to 1,500 people and deploy trucks that can carry up to 350 tonnes of coal each. Digging machines to be deployed there will pick up 50 tonnes of coal each, according to sources.

Opposing Asia Energy's mining plan, many local energy experts had earlier said the six-percent royalty under the coal development policy should be immediately revised as it undermines the high value of coal in the present context of high price of petroleum.