PRESS RELEASE : GCM AGM Postponed Due To Risk Of Protests

Tuesday, 17 December 2019, London, UK.

  • British mining company GCM Resources has postponed tomorrow’s London AGM due to security risk from protests.
  • In Phulbari, Bangladesh, protests today blocked roads demanding the Bangladesh government take immediate legal action against the company.
  • Phulbari UNO joined rally with community leaders and stated that the resistance movement in Phulbari is democratic and peaceful which demands attention of the government.
  • Bangladesh Deputy Energy Minister confirms that GCM has no valid license or asset in the country, and claims government will be taking legal action against them.

Phulbari Rally outside of UNO’s office in Phulbari on 17 Dec 2019. Photocredit: Biplob River Down

GCM Resources yesterday issued this statement postponing Wednesday’s AGM indefinitely due to the risk of protests threatening the security of the venue:

“The decision to seek to adjourn the AGM follows consultation with the venue over access and security issues, which has resulted in the venue being withdrawn as the location for the AGM.”

Loud protests had been organised by Phulbari Solidarity Group alongside a wide coalition of seven organisations at the AGM of the AIM listed British mining company GCM Resources Plc for the 10th consecutive year. Protesters planned to demand that GCM is de-listed from the London Stock Exchange as it has no viable asset to its name, and has not held a license for coal exploration or mining in Bangladesh since 2006. Inside the AGM, dissident shareholders would again dominate the meeting, accusing the company of misleading shareholders and the London Stock Exchange. Last year activists had glued themselves to the entrance of the AGM preventing some shareholders from entering.

Phulbari Rally outside of UNO’s office is joined by the UNO who came out of office and accepted the memorandum from the community leaders to be delivered to prime minister and energy minister of Bangladesh on 17 Dec 2019 . Photocredit: Biplob River Down

 

Meanwhile in Bangladesh, communities from Phulbari, Barapukuria and Dinajpur, many of whom are threatened with displacement by the planned mine, today demonstrated outside of the UNO (Phulbari District Office) and blocked the Nimtoli roundabout demanding that the Bangladesh government categorically end speculation on whether GCM can obtain a license, remove the GCM Resources office from Phulbari, and take legal action against the company for fraud and harassment of Phulbari residents.  Community leaders have handed a memorandum to Phulbari UNO, who has joined the rally himself and stated that “the protesters are peaceful and the movement is justified and democratic”.

The community memo also demands an immediate withdrawal of all arbitrary cases against 19 community leaders, which Gary Lye has filed in 2014 by claiming that the community leaders must pay him 100 crore Taka, Bangladeshi money (GBP 1 billion), as he felt insulted and faced reputational damage when community activists stopped him from re-entering the township. Protesters maintain that GCM is responsible for the murder of three young boys and 220 injured in a 2006 demonstration. They have handed a memorandum to Prime Minister Sheikh Hasina (who is also Bangladesh’s Minister for Energy and Mineral Resources) via the UNO, asking her to take legal action against GCM immediately.

Professor Anu Muhammad, the leader of the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports of Bangladesh said:

“People’s resistance against GCM is still strong despite an environment of fear and surveillance. GCM’s fraud and illegal business must be stopped immediately by de-listing it from the London Stock Exchange to stop its continuing manipulation and corrupt attempts at coal mining along with Chinese companies, its harassment of community leaders, and preparations for violent crimes against people and environment in the form of open cast coal mining and displacement.”

Dr Rumana Hashem, Chair of Phulbari Solidarity Group, who organised the London protests says:

“GCM’s postponement of their AGM shows that they are running scared from activists and academics who would expose the fraudulent nature of their London listing and trading on the LSE. People in Phulbari have lived under the threat of displacement, and with the trauma of the Phulbari killings for more than 13 years. Yet the London Stock Exchange has continued to list and generate capital for this company despite its total lack of any viable mining asset in Bangladesh. We are calling on the Bangladeshi government to categorically end the speculation, remove GCM’s office from Phulbari, launch legal action against them, and pressure the London Stock Exchange to finally de-list this criminal and fraudulent company. It is time to end the suffering for the residents of Phulbari.”

 

Phulbari Rally against GCM attended by Phulbari Labours and Indigenous Workers’ leader, Hamidul, on 17 Dec 2019.  Hamidul is a victim of two arbitrary cases filed by Gary Lye in 2016. One of these charges claim that Hamidul must pay 1 billion$ for Lye’s reputational damage in 2014.  Photocredit: Sanjit Prasad Gupta.

 

GCM Resources (then ‘Asia Energy’) listed on the Alternative Investment Market (AIM) of the London Stock Exchange in 2004, following the granting of a two year permit (license) from the Bangladesh Energy Department’s Bureau of Mineral Resource Development on 27 January 2004 for exploration and surveying of a 572 million tonne open cast coal mine at Phulbari in Dinajpur, Northwest Bangladesh. A Scheme of Development was submitted to the Government of Bangladesh in 2005 but has never received approval. The permit expired on 27 January 2006 and has not been renewed, yet the company has continued to sell shares and raise capital in London based on claims that a contract will be forthcoming. GCM Resources has no other assets or projects in its portfolio.

 

On 26 August 2006 three teenage boys were shot dead, and more than two hundred injured by paramilitary forces in a peaceful demonstration of 80,000 people against the mine. Annual ‘Phulbari Day’ rallies have been held every year in the community and across Bangladesh, commemorating the deaths and protesting the company’s continued plans. Recently, GCM’s CEO Gary Lye has filed multiple cases against 19 community organisers in Phulbari and Dinajpur claiming he has felt ‘harassed’ when he visited the area in an attempt to continue coal mining plans in 2014.

In August 2019 the Deputy State Minister for Power, Energy and Mineral Resources, Nasrul Hamid, made this statement to the daily Prothom Alo newspaper:

“Even in the absence of an agreement, GCM or Asia Energy is trading shares in London by providing information that coal would be extracted from Phulbari, which is false. The government has taken this into notice. The government is proceeding to take legal action against them .”

He stated that the Prime Minister Sheikh Hasina’s clear instructions are that the government has no plans to extract coal from Phulbari, and the future extraction of coal would only be considered if any advanced and environmental mining or coal burning technology emerged.

According to GCM’s 2019 annual report and its Regulatory New Service submissions to the London Stock Exchange, the company signed an MOU with Power Construction Corporation of China (PowerChina) in November 2018 to develop a 4,000MW power plant at Phulbari as part of the One Belt, One Road Initiative of the People’s Republic of China. In January 2019, the Power entered into a Joint Venture Agreement with the GCM for the first stage of development, leading to a hike in its share price, despite the lack of government approvals for the project.

      Phulbari Rally outside of UNO’s office on 17 Dec 2019. Photocredit: Sanjit Prasad Gupta.

GCM is not only selling shares on Phulbari’s name in London, the company is one of a string of London listed mining companies linked to the murder and ‘massacre’ of protesters, including Lonmin, Glencore, Kazakhmys, ENRC, Essar, Vedanta, Anglo Gold Ashanti, African Barrick Gold and Monterrico Metals. They have recently announced three new strategic partnerships with two Chinese firms – China Nonferrous Metal Industry’s Foreign Engineering and Construction Company (NFC) and Power Construction Corporation of China (PowerChina), and a Bangladesh based company DG Infratech Pte Ltd. to develop the mine and conspiring in Bangladesh.

Wednesday’s London protests were to be co-hosted by the UK Committee to Protect the Natural Resources of Bangladesh, Foil Vedanta, London Mining Network, Global Justice Rebellion, Extinction Rebellion International Solidarity Network, Christian Climate Action and Reclaim the Power.

 

For further information, contact:

Lydia James: <contact@londonminingnetwork.org>

Phulbari Rally outside of UNO’s office on 17 Dec 2019. Photocredit: Sanjit Prasad Gupta

#ExposeGCM  #ProtestCoalMining  #PhulbariResistance