Coal production in Barapukuria mine has been hindered amid delayed shifting to the new phase caused by labour unrest.
It is pertaining to note that since 2005, coal extraction is carried out in a phased manner by state run Barapukuria Coal Mining Company Limited (BCMCL).
Countrywide lock-down imposed to curb the COVID-19 outbreak resulted in temporarily suspension of mining activity. Eventually, production from the last phase ran out in May’20; since then little progress has been observed post-lock down.
Data provided on company’s website indicates that production of 38.29 t coal was last recorded on 14 May’20.
Generally, preparing a new phase for coal production takes two to three months. However, the process is delayed by the strict conditions placed down by the mine developer CMC (China National Machinery Import and Export Corporation) due to which workers were seen abstaining from mining activities in protest to the new directives.
Power plant susceptible to forced shutdown:
The coal from Barapukuria is the only fuel source for the country’s first thermal plant which is having a combined capacity to generate 525 MW (mega-watts) of electricity.
Media reports have stated that there was meager coal stock available at the plant whose two units have already been stopped due to coal shortage. Whilst, the third unit may also be shut down if coal supplies are not resumed soon.
Will it increase dependence on imports?
Coal imports into Bangladesh have seen a surge lately after BCMCL had terminated coal supplies to the non-power sector in order to augment fuel availability for the thermal power plant.
It is being anticipated that if situation continues, the plant may opt for imports in order to prevent possible power supply disruption.
According to the data maintained with CoalMint research, Bangladesh’s coal import shipments have increased 19% y-o-y to 3.08 mn t in the first six months of CY20 against 2.58 mn t in the corresponding period of previous year.
Interestingly, imports have stretched onto May-Jun period, which is generally considered as an off-season for shipping activities due to monsoons. Adding to it an intake of 54,700 t coal has been recorded in Jun’20 for the first time in last five years.
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