Maddhapara Granite counts loss of Tk 126cr in 3 months

Bangladesh's lone hard rock mine, Maddhapara Granite Mine Company Ltd (MGMCL) has incurred a loss of Tk 126 crore in the last three months as it failed to extract hard rock since May 1.
The production closure has created huge crisis and increased the amount of import from abroad using hard currency right at the moment, building material for the construction of the Padma Multipurpose Bridge, Rooppur Nuclear Power Plant, the 3rd terminal of the Hazrat Shahjalal International Airport and other ongoing public installations, the government had to spend precious dollars at this crisis moment.
MGMCL has shut down its production due to explosive shortage although Belarus-based GTC, the contractor of the mine has taken up the  responsibility of explosive supply hiking the rate five times higher than the government rate but have not taken any initiative to procure it from abroad.
"We had started talk with the contractor about the explosive," Managing Director of the MGMCL Abu Daud M Fariduzzaman told the Daily Observer.
GTC has been operating and maintaining the mine since September 2013 under a deal worth US$171.86 million. GTC's contract was extended by a year by the government considering the Covid-19 pandemic situation in 2020. MGMCL has renewed the contract with GTC in September last once again worth $177
    million. It also begged the explosive issue with a higher rate and trying to get exemption from all kinds of taxes, duties, fees, levies and such other charges claiming GTC as a "deemed exporter."
Petrobangla helped the MGMCL, to avail a bill worth Tk 100 crore evading Tk 15 crore tax-VAT.
Although as per agreement, the contractor shall be entirely responsible for all kinds of taxes, duties, fees, levies and such other charges assessed on the contractor, which usually deducted from the bill, unfortunately, Petrobangla overlooked the issue, a senior official of the Energy Division told this correspondent.
"It's a clear a violation of Taxes law, however, if there is any dispute or new thing arise than the National Board or Revenues (NBR) is the authority to decide things,"  CAB Energy Expert Dr M Shamsul Alam said.
He said, "The crucial issue is that the contractor will not suffer for halting the production, rather it will get money on the pretext of 'force majeure,' only the labours of the mine and the government will suffer, who will take care of it ?
He said not only the Tax-Vat issue, MGMCL has became a centre of corruption, government need to form a commission and investigate the whole corruption of the contract.
It has been said the Managing Director is taking "Underground Allowance" in every months although there is no operation.
Earlier, General Manager of MGMCL said the mine has not been receiving adequate ammonium nitrate explosives for the last two years due to Covid-19 pandemic. And said the production could resume by March 27 this year as a consignment of explosives is scheduled to arrive.
"Yes, that was a single consignment, we need continues supply of explosive to run the mine," he added.
As per contract MGMCL is responsible for the mine and the supply of explosives to the mine developer it takes a long time and showed reluctance to collect explosives for the last one year just to ensure some extra benefit to its developer, the official claimed.
MGMCL said that there is a demand of 1.5 tonnes of explosives every day to extract the hard rock. MGMCL has been sourcing the required explosives from India, China, South-Korea and Thailand. But in the wake of the Covid-19 pandemic, the supply of explosives was disrupted but what happened now, the official asked.