GCM enlists consultancy to find Chinese partners for Bangladesh project

26th Oct 2018 12:43

(Sharecast News) - Coal miner GCM Resources on Friday entered into a new consulting agreement with Dyani Corporation Limited to aid relations with Chinese companies.Primary objectives of the consultancy include securing prospective Chinese strategic partners for the Phulbari Power and Coal Project, as well as advancing the company's existing relationship with China Gezhouba Group International Engineering Co.The AIM traded company is aiming to become the largest and cheapest provider of electricity in Bangladesh through its combined mine mouth and power plants, known as the Phulbari Project.Securing strategic partnerships with Chinese state-owned enterprises (SOE) will strongly enhance the credibility of the proposal and "greatly" enhance the prospects of achieving the necessary approvals from the government of Bangladesh for developing the project, according to a GCM statement."Securing the interest of Chinese SOE's as strategic partners is critical to achieving the company's goals. The consultant has been instrumental in enabling GCM's progress to-date in line with its strategy and the company believes the new agreement will provide the framework to make significant strides towards its objectives," the statement continued.Dyani previously secured the partnership between CGGC and GCM, and assisted in procuring recent interest of Sinohydro Corporation, a subsidiary of Power Construction Corporation of China, in a similar partnership.Datuk Michael Tang PJN, executive chairman of GCM, said: "I am delighted to re-engage the services of Dyani and look forward to working with them to drive significant progress towards our goals over the coming months. Completing this agreement is a considerable breakthrough for the company and I am confident that it will unlock significant value for our shareholders in time to come."GCM's shares were up 2.49% at 15.63p at 1254 BST.