Bangladesh boost for Asia Energy

Bangladesh boost for Asia Energy

Growth Company Investor Ltd, London

01 April 2005

AIM-quoted Asia Energy says the Bangladesh Department of Environment has granted environmental site clearance to its 370 million-tonne Phulbari coal project in the north-west of the country, writes Robert Tyerman.

David Lenigas, Asia Energy's joint managing director, says environmental clearance for the company's planned open-cast mine at Phulbari paves the way for formal government approval of the project. He describes the decision as 'a major step towards starting a world-class coal mining operation'.

Consultant SMEC International is working on a full environmental impact assessment for Phulbari, whose projected annual output was last year increased from nine to 15 million tonnes, which will be submitted to the Dhaka government this summer. Asia Energy shares, recommended by Growth Company Investor at 75p a year ago, are 36.5p up today at 793.5p.

They could well go further, in the short term at least, though cautious investors should consider partial profit-taking. Robert Tyerman