Barapukuria Coal Mining Company Limited (BCMCL), established in 1998, operates Bangladesh’s only active coal mine located in Dinajpur. As a subsidiary of Petrobangla, BCMCL plays a pivotal role in supplying coal to the nation’s energy infrastructure, particularly the Barapukuria Coal Power Plant.
Recent Developments
In recent months, BCMCL has faced operational challenges due to coal storage overflow. The coal yards are exceeding capacity, with over 320,000 tonnes of coal stored, triple the usual height, as the Chinese contractor continues daily extraction of 5,000 tonnes.
However, the power plant can consume only about 2,500 tonnes daily, leading to surplus accumulation. Efforts to suspend mining have been declined by the contractor, citing risks of gas buildup and spontaneous combustion if operations halt.
Financial Disputes
Additionally, a pricing dispute has arisen between BCMCL and the Bangladesh Power Development Board (BPDB). BPDB has withheld payments for coal supplied in January and February 2025, arguing that BCMCL’s pricing does not align with international market rates, specifically the Indonesian coal index.
Historical Context
BCMCL has a history of operational challenges, including a significant corruption scandal in 2018 involving the misappropriation of approximately 142,000 tonnes of coal, leading to legal actions against several officials.
The situation at BCMCL underscores the complexities of energy resource management in Bangladesh. Addressing storage capacities, contractor coordination, and pricing strategies is essential for the sustainable operation of the nation’s sole coal mine.