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Bangladesh: Mining

Volume 475: debated on Monday 28 April 2008

To ask the Secretary of State for International Development what reports he has received on the effects of Global Coal Management Resources plc's open cast mining at Phulbari in north-west Bangladesh on development and poverty reduction in the area. (198831)

Global Coal Management Resources (GCM) does not currently have any mining operations in Phulbari, Bangladesh, but we are aware that plans exist. We have not received any reports on the potential effects of this, but we are aware that the Asian Development Bank (AsDB) has been assessing it. The bank has recently announced that they will not go ahead with the project proposal.

Some international and national organisations have raised concerns to us and AsDB about the environmental sustainability of the proposed project and possible negative effects for the population living in the area.

DFID's position on this has been that the social and environmental aspects of investments made by the bank need to be thoroughly considered and the bank's own procedures for project proposals must be followed.