Never miss an issue of Master Investor Magazine – sign-up now for free!
Shares in GCM Resources (LON:GCM) have soared by 87% to 22p (as of 12:00 GMT) after the mining and energy company announced the signing of a memorandum of understanding (MOU) with Power Construction Corporation of China. Under the deal the two parties will work towards developing the company’s Phulbari Coal and Power Project in north-west Bangladesh, as well as power plants generating up to 4,000MW at the mine site.
The MOU, valid for six months, sets out terms for PowerChina to undertake feasibility and viability studies of the integrated coal mine and power plants, with a view to including Phulbari as a One Belt, One Road Initiative of the People’s Republic of China. A Joint Development Agreement between the two parties is being aimed for by the end of the year, with a formal proposal expected to be submitted to the Government of Bangladesh by 28th February 2019.
PowerChina is a key partner for GCM to have on board, it being a state-owned Key Enterprise of the People’s Republic of China and a world-leading integrated engineering construction group. GCM’s Executive Chairman, Datuk Michael Tang PJN, commented, “… I am excited by the momentum which is being built towards our goals.”