Barapukuria coal mine in crisis due to closure of thermal power plant

Barapukuria in Dinajpur, the country's only productive coal mine, is in deep crisis today. As the Barapukuria thermal power plant is closed for most of the year, the coal produced by the mine is not being used. As a result, more than three times the capacity of the coal is stored in the coal yard, creating a serious risk.

According to the mine authority, although the capacity of the coal yard is 220,000 tons, about 500,000 tons of coal are currently piled up there. Where coal is normally stored at a height of 5-7 feet, the mountain is collapsing like a landslide due to the coal being stored at a height of more than 50 feet. The boundary wall has already been breached and the highway is about to be closed. Those concerned are afraid of a major accident at any time.

Since 2019, according to the decision of the Ministry of Energy, the sale of coal from the Barapukuria coal mine to anywhere other than thermal power plants has been banned. However, despite the current high demand for coal in domestic industries and brick kilns, the mine is not being allowed to sell coal outside.

It is reported that the total production capacity of the Barapukuria thermal power plant is 525 MW. Of these, there are two units of 125 MW and one of 375 MW. If the three units are operated together, 5,500 metric tons of coal are required daily. But in reality, the three units have never been operated together.

It has been found that the 125 MW unit number 2 has been completely closed since 2020. The 375 MW unit number 3 has been closed since October this year. Although only unit number 1 is currently operational, only 50-60 MW is being produced there. As a result, only 600 to 750 metric tons of coal are being used daily, which is much less than the production.

Abu Bakar Siddique, chief engineer of the thermal power plant, said that if unit number 3 was operational, about 2,500 metric tons of coal would be used daily. The unit's closure has increased the stock. He expressed hope that the stock problem will be solved if the unit is operational in March 2026.

On the other hand, the mine authority said that the Barapukuria coal mine has been operating successfully since commercial coal extraction began in 2005.

The mine has also won awards as a national taxpayer in the 2011-12, 2013-14 and 2016-17 fiscal years. So far, it has deposited about 5,500 crore taka in VAT, tax, royalty and other revenues to the government treasury, which is one of the largest sources of government revenue in the northern region.

However, currently, the gap between the production cost and the selling price of coal has put the mine in an extreme financial crisis.

Abul Kashem Sikder, president of the mine's workers' union, said that the cost of producing each ton of coal is about $176. However, the only buyer, PDB, is paying only $91 to $107 per ton of coal. As a result, the mine has incurred huge losses and the outstanding dues have reached about Tk 1,200 crore.

He alleged that where the price of coal in the open market is more than $200, the buyer himself is pushing the mine towards losses. This has raised the possibility of the mine closing. He expressed the fear that about 20 to 25 thousand families directly and indirectly involved will lose their livelihood if the mine closes.

However, denying these allegations, the thermal power plant authorities said that they have no opportunity to do anything beyond the government's decisions and regulations. The bill is being paid as per government instructions.

According to those concerned, if an alternative system and policy decision for selling coal is not taken quickly, the production of the Barapukuria coal mine may stop, which will have a terrible impact on the country's energy security and the lives of thousands of workers.