3 local firms may get licence to explore peat coal
The energy ministry has asked the Bureau of Minerals Development to issue licences to three newly-formed local companies for exploration of peat coal in Madaripur.
Swadhin Bangla Mines and Electricity Ltd will be awarded a licence to explore peat coal in 3,400 hectares, Padma Mining and Energy Corporation Ltd 4,000 hectares and Reliance Minerals and Power Ltd 3,100 hectares in Rajoir upazila of Madaripur.
Sources said a single business group owns these three new companies.
On March 10, the ministry in a letter asked the BMD to issue the licences with certain conditions.
As per the conditions, the companies would explore peat coal in the blocks at their own expense. They would not conduct any activities that can affect the environment, biodiversity, fishery, plants, important structures, relics, cultural or religious structures.
The companies would not explore radio-active minerals but if they find any, they would have to inform the BMD and the Atomic Energy Commission about the discovery.
This licence does not ensure issuance of mining licence in the future.
Since the 50's, the Geological Survey of Pakistan and then the Geological Survey of Bangladesh discovered considerable quantities of peat deposits in various localities of Bangladesh. Amongst these discoveries, the deposits of Baghia-Chanda Beel in Madaripur, Kola Mauza in Khulna, Chatal Beel in Moulvibazar, Pagla and Salla in Sunamganj are notable.
Discovered in the early 50's, the Geological Survey of Pakistan found peat in 500sqkm of Baghia-Chanda Beel. The average thickness of this peat is two metres and situated near the surface.
The reserve of the dry peat is calculated to be 150 million tonnes. In two separate studies in the 80's, it was found that the peat could be mined for the production of electricity in small power plants (10-20MW) and consumption in brick kilns.
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