Development of this mine would require the company to relocate 40,000 people of 9,000 households in the mining area in different phases over a 30-year lifespan of the mine. The company will compensate the affected people.

At the same time, the 6,500 hectare-mine is expected to stimulate economic activities, particularly in transport sector, railway, land and sea ports and infrastructure building in the western and northern Bangladesh. The mine will directly create 10,000 jobs.

The Bangladesh wing of the British company in its study shows that the mine has 572 million tonnes of high quality coal. The two-year study costing $18 million involved 300 people to see environment impact of the project

On September 11, the Department of Environment gave the company environmental clearance for the open pit mine.

Chief Executive Officer (CEO) of Asia Energy (Bangladesh) Gary Lye handed over the feasibility study and scheme of development to the director of the Bureau of Mineral Development of the energy ministry.

"The operating cost of the mine for 30 years will be $10 billion," Lye told a press conference at Sheraton Hotel yesterday. During this period, the mine will produce coal worth nearly $24 billion. The average price of coal has been estimated at $50 per tonne.

Lye's economic projection shows that in 30 years' time, Asia Energy will earn $7 billion while the government will earn a royalty of $ .2 billion and $2.8 billion as corporate tax. The Bangladesh Railway, Mongla port authority, income tax division and customs department will earn another $3 billion.

Replying to a question on the low royalty rate for the government, which is only 6 percent of the mine's revenue, Gary says, "Six percent royalty is a global standard. The government will earn more through corporate tax and other ways. The (regional) infrastructure will be boosted, which will not happen without this project."

If the government approves the plans, the company will start land acquisition next year, mine development in 2007 and start production of 1.5 million tonnes of coal a year from 2008. Production will gradually increase to 15 million tonnes per year by 2013.

"We are now preparing the financing documents. We are also making a land acquisition plan and we intend to take the land from 2006," Gary said.

Showing an aerial 'gravity map' of a large coal stream, Gary said a part of Phulbari town is situated on the coal stream, requiring relocation of 40,000 people. In any large project, a nation needs to relocate people for greater gains, he added.

"Coal production will trigger jobs and industries. Hopefully there will be a win-win situation for all."

Other than coal, the mine will produce gravel, silica sand and other high-end minerals that will have positive impacts on other types of industries.

The CEO noted that the company aims at exporting 4 million tonnes of coal to India a year through railway via Darshana border post, 8 million tonnes to other countries through Mongla port and supply 3 million tonnes to the Gazipur-based domestic market.

On the question of open pit mining versus underground mining, he said, "Usually underground mining is done when open pit is not possible. Underground mining poses a great risk of land collapse. The coal recovery rate is only 25 percent. Open pit is proven safe and it allows 90 percent coal recovery."

In 30 years' time, the company will dig up an open pit at one point and proceed to another when extraction of coal from that spot is over. The old spot will then be filled up with earth so that people can productively use it.

A total of 67 separate reports were incorporated in the feasibility study and scheme of development, detailing different aspects of the mine ranging from mine design and water management to coal handling, processing and transport.

Asia Energy Bangladesh's head of corporate affairs Brian Mooney, General Manager (GM) Mushfiqur Rahman and GM (environment and community) Anwarul Islam were also present at the press conference.