Mineral Extraction in Bangladesh: Some Fundamental Reform Suggestions

Abstract

This paper proposes some fundamental reforms of the way the extraction of minerals are managed in Bangladesh. It suggests a Mineral Management Initiative that consists of three components: (i) the creation of Mineral Oversight Committee; (ii) the establishment of a Mineral Revenue Program; and (iii) a comprehensive Mineral Capacity Building Program. The purpose of the Mineral Oversight Committee (MOC) would be to oversee all decisions of Petrobangla's Board of Directors as well as to monitor all major transactions of Petrobangla, including especially the use of mineral revenues and royalties. The establishment of a Mineral Revenue Program (MRP) is proposed to ensure that the revenues and royalties from the extraction of Bangladesh's minerals will accrue to all the people of Bangladesh, while a comprehensive Mineral Capacity Building Program (MCBP) would provide specialized resource and management training.

Keywords: Bangladesh, mineral extraction, natural gas, oil, natural resources

JEL Classification: Q32, Q38, O13