GCM Resources Extends PowerChina Deal to Advance Phulbari Coal Mine

GCM Resources ( (GB:GCM) ) has shared an announcement.

GCM Resources has secured a 24-month extension, to December 2027, of its memorandum of understanding with Power Construction Corporation of China (PowerChina) to advance development of the Phulbari coal mine on unchanged terms. The extension builds on earlier progress under the partnership, including an EPC contract signed in March 2024 for mine infrastructure construction and overburden stripping, which also covers dewatering, drainage and selective mining of industrial mineral co-products expected to generate early cash flow before coal extraction. Under the renewed framework, GCM and PowerChina will work to define additional work packages and financing structures, with the aim of moving the project toward a contract mining model that reduces technical risk and upfront capital needs, while positioning PowerChina as a key mine development partner pending internal and regulatory approvals and potentially strengthening GCM’s ability to secure Bangladeshi government approval for the project.

More about GCM Resources

GCM Resources plc is an AIM-listed mining and energy company focused on developing the Phulbari Coal and Power Project in north-west Bangladesh, where it has identified a 572 million tonne JORC-compliant coal resource. The company’s strategy is to use highly energy-efficient power generation technology to support around 6,600MW of coal-fired capacity, supplying coal to existing and planned government power plants and those developed with strategic partners, with the aim of delivering some of the cheapest coal-fired electricity in Bangladesh in a way acceptable to the Bangladeshi government.

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Technical Sentiment Signal: Hold

Current Market Cap: £17.66M

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