The New Nation - Internet Edition

UNB, Dhaka

An Australian company offered to invest 400 million US dollars in mineral sand mining in the Bay of Bengal off Cox's Bazar coast, after ascertaining a good find through preliminary exploration.

The company's willingness was conveyed to State Minister for Environment and Forest Dr Hasan Mahmud by Australian High Commissioner in Bangladesh Dr Justin Lee during a meeting at the ministry yesterday.

Earlier, in January 2007, the government had given permission to Premier Minerals, the Australian Company, for exploration of the sea sand laden with a number of minerals reportedly abound in the bay, apart from hydrocarbons.

"On completion of the first phase of exploration, the company expressed its eagerness to invest in the project for extracting the sea sand rich in mineral resources," an official announcement said.

The sea sand at Cox's Bazar beach contains heavy minerals, including Zircon, Rutile, Ilmenite, Leucoxene, and Magentite. The Australian firm plans to undertake the mining project under Teknaf upazila.

The minister said, "The government is eager to approve those projects which will bring economic prosperity for our country, but these must be environment-friendly."

Alan Grant, Chairman of the Premier Minerals, who was present at the meeting, said that they are interested to make the investment in the mining project maintaining full "environmental balance".

Dr Hasan Mahmud said more review is needed for looking into the project's technical and environmental sides. "It must be ensured whether it is environment-friendly before giving final approval."

The Australian mining-project proposal came when the government is negotiating deals with an American and an Irish firm for gas exploration in the Bay, amid outcries from a group of protestors at home and rival mining bids from neighbouring India and Myanmar.