The power division, a major buyer of Barapukuria coal, will consider refixing coal prices to reduce loss of Barapukuria Coal Mine Company Ltd (BCMCL).
The power division for long was not responding to the energy ministry's proposal to increase the coal price, as BCMCL has been incurring a loss of US$41 per tonne for the last two years, an authoritative source of the ministry told the news agency.
"Now, they (power division) have agreed to review the coal price", the source said.
According to the BCMCL, the cost of extracting coal is $125 per tonne while the selling rate is only $84.
"We have no way to run the company as it is incurring huge loss. Yet the government would continue its production, even with huge subsidy for this purpose", Petrobangla Chairman Dr Hossain Monsur said.
He said the BCMCL has sought Tk 380 crore as subsidy to ensure smooth supply of coal.
Barapukuria is now producing 1,500-1,700 tonnes of coal per day. Most of the coal is being used in Barapukuria power plant while the private sector consumers buy the coal of this mine at $138 per tonne.
"We discussed on refixing prices of coal supplied to Bangladesh Power Development Board (PDB). And the BCMCL authority has been asked to submit a report detailing the coal production, its cost, and losses", Power Division Secretary Abul Kalam Azad said.
The Barapukuria mine has a reserve of around 300 million tonnes of coal.
Source : The Daily Star
