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Polo Resources' investee lands coal plant agreement with Chinese giant
Natural resource investment company Polo Resources announced on Thursday that its investee company GCM Resources has signed a contract framework agreement with China Gezhouba Group (CGGC).
The agreement awards China Gezhouba Group the right for the engineering, procurement, construction and commissioning of a proposed 2,000MW thermal power plant at GCM's proposed coal mine project in North-West Bangladesh.
China Gezhouba Group will supply these services at an initial estimated cost of $3.8bn, subject to adjustments such as the finalisation of an engineering, procurement, construction and commissioning contract.
Polo Resources holds a 19.84% equity interest in GCM Resources which has identified a coal resource of 572m tonnes at the Phulbari coal project in Bangladesh.
A statement from Polo Resources said: "CGGC is the main international business company of both China Gezhouba Group Corporation and China Energy Engineering Co. Ltd ("Energy China"). Energy China is a super central state-owned enterprise, and in 2017 ranked 312th in the Fortune Global 500."
Furthermore, Energy China has enjoyed involvement in the design and construction of power plants with a comprehensive capacity of almost 220GW, the third highest in the world.
As of 1103 GMT, Polo Resources' shares were up 3.00% at 4.82p.