Bangladesh move to scrap British coal mine deal

Bangladesh’s prime minister’s office has asked the energy ministry to take necessary steps to scrap a billion pound coal-mine deal with British company Asia Energy that has sparked violent protests, a news report said Saturday.

The move came after at least six people were killed by police during violent protests in August demanding that the government scrap the deal, the New Age newspaper reported.

The deal would permit London-based Asia Energy to dig an open-pit coal mine in the Phulbari area of northern Dinajpur district.

Protesters say the mine’s development would displace more than 40,000 villagers and damage the environment in Dinajpur, a farming district 270 kilometres north of Dhaka.

Asia Energy plans to invest £1.3bn (€1.9bn) to develop the open-pit mine.

Since submitting a joint feasibility study and proposal last October, the company has been awaiting government approval to start mining operations.