British mining company GCM Resources said it has secured a 24-month extension of the Memorandum of Understanding (MOU) with Power Construction Corporation of China, Ltd. (PowerChina), to advance the development of Phulbari coal mine in northwest Bangladesh.

The extension allows GCM to continue developing the 572 million tonnes of coal reserve at the mine until December 6, 2027, under the same terms in the previous agreement, according to the company's announcement on December 29.

GCM and PowerChina have already made progress under the existing MOU, including signing an EPC contract in March 2024 for mine infrastructure construction and overburden stripping, the company said.

The scope of the current contract includes design, procurement, installation, and commissioning of mine infrastructure, as well as overburden removal, dewatering, and drainage. It also covers selective mining and stockpiling of mineral co-products found in the overburden.

During the extended period, the two companies aim to determine how PowerChina will get involved in other work packages and in financing needed to fully develop the mine.

PowerChina's involvement can greatly help obtain the necessary approval from the local government and highlight the coal mine's role in providing reliable and affordable commercial electricity to reduce Bangladesh's dependence on imported energy, according to GCM's Chief Executive Michael Tang.

The Phulbari coal mine is expected to support approximately 6.6 GW of power generation using energy-efficient technology, said GCM in the statement.