Bangladesh plans to meet 75% of its thermal power plants' coal demand from local sources once extraction begins at the Phulbari mine in Dinajpur, according to officials from the Barapukuria Coal Mining Company Limited (BCMCL).

The country currently imports around 20 million tonnes of coal annually for six major coalfired plants, while output from the Barapukuria mine is entirely used by its own adjoining plant.

The Phulbari deposit holds 572 million tonnes of reserves, of which 472 million tonnes are extractable.

BCMCL sources say the mine could produce 15 million tonnes per year – enough to cover three-quarters of current import volumes. This would reduce pressure on gas-fired generation, save foreign exchange, and lessen import dependency, energy policymakers argue.

A 10-year energy master plan, which includes a domestic coal extraction policy, is expected to be tabled in parliament this month. Finance Minister Amir Khosru Mahmud Chowdhury confirmed that a comprehensive energy policy will be unveiled within two to three weeks.

"Unfortunately, we're now moving toward coal extraction. We have to proceed with open-pit coal extraction in Phulbari and other locations because we have no other alternative before us. We have more or less finalised our decisions regarding the energy mix." Khosru stated at an AmCham meeting on August 17.

A BCMCL official, speaking anonymously, noted that the Phulbari seam lies just 240 metres underground and that, once the government gives final approval, it would take about five years to reach full production. Currently, only the Barapukuria mine is operational, producing 700,000 tonnes annually through a Chinese consortium.

The country's seven coal-fired plants have a combined capacity of 7.31 GW. Excluding Barapukuria, the Power Development Board imports at least 20 million tonnes yearly for the other six units.

In fiscal 2024-25, coal import Letters of Credit totalled around $1.19 billion, equivalent to about BDT 145 billion at current exchange rates. Coal now accounts for 28% of total generation capacity, while national demand stands near 17 GW.

With gas-fired capacity at 12.47 GW but severely underutilised due to shortages, stakeholders believe domestic coal could ensure cheaper and more reliable operation. However, energy expert Prof.

"A neutral study is required to make a definitive decision... If they determine that the risks are limited and manageable, we can proceed. And if they say the risk is too high, then we can completely abandon the idea." M Tamim of Independent University urged.

Petrobangla Director (PSC and Operation & Mines) Engineer Md Shoaib said land acquisition and borehole drilling are under way at Barapukuria to expand extraction there.

Bangladesh has five known coal fields, with Jamalganj (5.45 billion tonnes) the largest, followed by Dighipara, Khalashpir, and Barapukuria.

Successive governments have hesitated to develop them. In 2006, a previous attempt at Phulbari triggered violent protests over land loss, environmental risks, and foreign contracting, leaving three people dead.

Energy sector stakeholders note that if local demands, compensation, and national benefits are clearly addressed, there may still be scope to utilize this resource.