Bangladesh protesters halt coal project

DHAKA, Aug 31 (Reuters) Violent protests over a British coal mine project, in which six people were killed and over 120 injured, ended today after the Bangladesh government agreed to halt work at the site, officials said.

The protesters withdrew after talks with government officials yesterday during which authorities agreed to compensate the families of the dead, an official in northern Dinajpur district said.

The open pit coal mine was being developed by the U K-based Asia Energy Plc at Phulbari in Dinajpur district, 350 km northwest of the capital, Dhaka.

Local residents, rights groups and opposition political parties objected, saying the project would displace hundreds of families and damage the environment.

Earlier this week, Asia Energy said it was still awaiting the go-ahead by the government to start mining.

''We are continuing to work positively with the Government of Bangladesh to make this project a success. The government has assured us that it remains committed to the project,'' company chief executive Steve Bywater said in a statement.

The statement, on the Asia Energy website, followed remarks by the company's Bangladesh entity that it had withdrawn staff from Phulbari and termporarily suspended work there.

A senior minister and secretary-general of the ruling Bangladesh Nationalist Party (BNP) said late yesterday that ''no coal mine or other project would be allowed at Phulbari against the interests of local people''.

Asia Energy officials today said they had not received any such communication from Bangladesh authorities.

The company intended to spend 3 billion dollars on the mine and a related power plant and 10.4 billion dollars in operating costs over 30 years.

REUTERS MS BS1307