CORRECTED - Bangladesh urged to tap coal before gas runs out

(Corrects company name para 4)

By Serajul Islam Quadir

DHAKA, April 30 (Reuters) - Experts from home and abroad asked Bangladesh on Wednesday to mine its huge coal reserves before its fast depleting natural gas reserves run out.

They however urged the country to tap the resource carefully to avoid human tragedies associated with coal mining.

The heavily populated Asian country faces a serious energy crisis, with lack of gas to produce electricity. The crisis is set to worsen by 2011 when its gas reserves could run out and attention is increasingly turning to its vast coal resorce.

It has already suffered a setback trying to mine coal in the northern Phulbari area, where Britain's GCM Resources Plc (GCM.L: Quote, Profile, Research) had to halt activities two years ago after violent protests by local residents and environmentalists, saying the project would displace at least 40,000 villagers and severely damage the environment.

At least three people were killed and dozens injured in clashes with police at Phulbari, in Dinajpur district, around 300 kilometres (190 miles) northwest of capital Dhaka.

"Phulbari is the crown jewel in coal inventory of Bangladesh and its development will help transform the economy of the nation," said Ajoy Kumar Ghose, a former professor of the Indian School of Mines.

"But the government should launch advertisement advocacy for assuaging the sentiments of project-affected people so that development and execution of the project can be facilitated," Ajoy told a Dhaka meeting attended by senior government officials and representatives of development partners.