Govt plan to open mine, expand coal-fired power plants stirs controversy 

Twenty years after the 2006 Phulbari tragedy in Dinajpur, the spectre of open-pit coal extraction is returning to Bangladesh. On August 24, 2006, security forces opened fire on demonstrators protesting a plan by UK-based Asia Energy�"now renamed Global Coal Management Resources�"to establish an open-pit coal mine. The blood was spilled on the streets of Phulbari, Dinajpur, to block the  multinational mining project.

Three people�"Amin, Salekin, and Tariqul�"were killed, and dozens were injured. Bangladesh Nationalist Party (BNP) was in power at the time and was forced to sign a six-point agreement on August 30, 2006 with the local people, promising to scrap the project, ban open-pit mining and expel Asia Energy from the region.

But on August 16, 2026,  Finance Minister Amir Khosru Mahmud Chowdhury told a media conference that the government was considering extraction of coal from Phulbari using the open-pit method that sparked widespread outrage.Prime Minister Tarique Rahman also announced recently that a 10-year energy master plan incorporating local coal extraction policy will soon be presented to parliament.

Following the announcement, Bangladesh has also given an in-principle go-ahead to expand coal-fired power generation by a further 2,640 megawatts (MW), with two mega projects expected to cost more than $3 billion.

Finance Minister told the briefing that to address Bangladesh’s chronic energy and power crisis, which has halted industrial operations and left many people half-fed at home, government has taken up the decision considering the global energy market and supply chain issues following the US-Iran war and energy pricing issues.

When contacted for comments, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said he was travelling abroad (now in Thiland, for treatment) and was unable to take questions. State Minister from the same ministry Anindya Islam Amit could not be reached.

Hasan Mehedi, member secretary of the Bangladesh Working Group on Ecology and Development, said extracting coal through an open-pit mine is a “suicidal move.” He noted that coal production at Barapukuria is already costing around $176 per tonne, while the international coal price is much lower. Globally, coal-fired power plants are being phased out and pressure on businesses to shift towards renewable energy is increasing, he added.

Anu Muhammad also said: “The Phulbari coal layers lie below the groundwater table and their lifting through open-pit mining would cause severe damage to groundwater resources. It would create a major environmental catastrophe.”

* Mining in Phulbari would require lifting an estimated 800 million liters of groundwater daily to keep the mine pit dry

* Depleting the water table would dry up surrounding wells, severely affect agricultural irrigation and trigger acute regional water scarcity.

* Near Barapukuria, Bangladesh’s only active underground coal mine, at least 15 adjacent villages have already lost access to freshwater.

* UN experts estimate open-pit mining in Phulbari would directly displace between 50,000 and 130,000 people and adversely affect over 220,000 others.

* The proposed project threatens to destroy 12,000 hectares of Bangladesh’s most fertile agricultural land, eliminate 1,000 fisheries and uproot nearly 50,000 fruit trees.

Expert Warnings: Environmental, Social, and Technical Risks
Energy and geology experts warn that reviving open-pit mining in a densely populated, ecologically fragile country like Bangladesh would trigger irreversible social and environmental ruin.

After the Phulbari coal mine controversy and unrest arose many international studies were released, including the ones from the International Accountability Project and United Nations.

Mining in Phulbari would require lifting an estimated 800 million liters of groundwater daily to keep the mine pit dry, the reports revealed.

Depleting the water table would dry up surrounding wells, severe agricultural irrigation, and trigger acute regional water scarcity. Near Barapukuria, Bangladesh’s only active underground coal mine, at least 15 adjacent villages have already lost access to freshwater, the reports noted.

Studies by UN experts estimate that open-pit mining in Phulbari would directly displace between 50,000 and 130,000 people and adversely affect over 220,000 others. The proposed project threatens to destroy 12,000 hectares of Bangladesh’s most fertile agricultural land, eliminate 1,000 fisheries, and uproot nearly 50,000 fruit trees, the UN said.

Bangladesh’s Coal Power Expansion Plans
Unveiling the government plan on coal fired power project, Bangladesh Power Development Board (BPDB) Chairman Engineer Rezaul Karim told  media “We are expected to add another two coal-fired power plants despite environmental concerns.” Bangladesh-China Power Company Ltd (BCPCL) has already prepared a development project proposal for the 1,320MW Matarbari expansion.

The  second 1,320MW plant is planned at the Payra power plant site in Patuakhali.

Bangladesh currently has about 6.69GW of installed coal-fired generation capacity. The proposed projects would increase total coal-fired capacity to about 9.33GW once completed. Bangladesh currently needs about 20 million tonnes of coal a year, mainly sourced from Indonesia, to operate its existing coal-fired power plants. Consumption would rise significantly after the proposed expansion.

Bangladesh is simultaneously expanding coal-fired power capacity by 2,640MW while promising to increase renewable energy.