The seminar held on February 27, 2025, at Biddyut Bhaban, Dhaka, was a clarion call to action for Bangladesh’s energy sector. Organised by the Hydrocarbon Unit (HCU) under the Ministry of Power, Energy and Mineral Resources, the event brought together policy makers, government officials, academia, and researchers to discuss the prospects and challenges of utilising Bangladesh’s domestic coal resources. The urgency of the matter was palpable, with Energy Secretary Mr. Saiful Islam chairing the seminar and setting the tone for the discussions.
Dr. Arup Kumar Biswas, Director of HCU, and Mr. Saiful Islam Sarker, Managing Director of Barapukuria Coal Mining Company Ltd. (BCMCL), delivered keynote presentations that laid bare the stark reality of Bangladesh’s coal situation. The country has discovered five major coal fields in the northern districts—Jamalganj, Barapukuria, Khalashpir, Dighipara, and Phulbari—with a combined reserve of approximately 7,823 million tons of coal. However, the utilisation of these resources has been hampered by a lack of decisive government action.
The Barapukuria coal field, with a proven reserve of 410 million tons, has been the subject of intensive study. BCMCL, which has been operating an underground mine since 2005, has faced significant challenges. The mine’s limited production capacity has fallen short of the 5,000 tons of coal required daily to optimally operate the adjacent 525 MW coal-fired power plant. This shortfall has led to a reliance on imported coal, exacerbating Bangladesh’s foreign currency deficit and increasing the debt burden on the country.
The situation is further complicated by the geological, technological, and environmental limitations of the Barapukuria mine. BCMCL has proposed transitioning to open-cut mining, which could potentially allow for 90% coal recovery and a 30-year mine life. This shift would require a significant investment and a supportive regulatory environment. The potential benefits are substantial: the Barapukuria coal field alone could yield premium quality coal worth $30 billion over its operational life.
The Phulbari coal field presents an even more compelling case. With a proven reserve of 572 million tons, it is suitable for open-cut mining and could optimally produce 475 million tons of coal. If mined efficiently, Phulbari could supply 15 million tons of premium coal annually, sufficient to generate approximately 5,300 MW of power. The potential for a ‘box cut’ mine that could extract coal from both the Barapukuria and Phulbari fields was also discussed, highlighting the need for integrated planning and investment.
The seminar underscored the urgent need for government decision-making. The current underground mining operations at Barapukuria are set to continue until 2027, but the future beyond that remains uncertain. The Energy Secretary, Mr. Saiful Islam, acknowledged the challenges, stating, “At times, we have struggled to pay coal import bills due to the foreign currency crisis.” He emphasised the need for a decisive approach, saying, “We must decide whether to use our own coal for power generation.”
The seminar’s recommendations were clear: the government must act swiftly to develop the Phulbari-Barapukuria coal mines. The potential benefits are immense, including reduced reliance on imported coal, decreased foreign currency expenditure, and a more stable energy supply. However, the path forward is fraught with challenges, including environmental concerns, social impacts, and the need for significant investment.
Energy Adviser Dr. Fauzul Kabir, who was the chief guest at the seminar, acknowledged the complexity of the issue. He stated that the government was preparing a roadmap for the next political administration to help determine whether to proceed with coal extraction in the country. This roadmap will be crucial in shaping the future of Bangladesh’s energy sector and its economic stability.
The seminar served as a wake-up call, highlighting the urgent need for action and the potential consequences of inaction. The discussions sparked a much-needed debate on the future of Bangladesh’s coal resources and the role they can play in the country’s energy security. The sector is at a crossroads, and the decisions made in the coming months will shape its development for decades to come. The government’s response to these recommendations will be closely watched, as the stakes are high, and the potential benefits and risks are significant.
