About 10 percent of the project work is still to be completed. As per the latest government approval, Namnam was to hand over the project in October last year and the mine was supposed to start production in November. But the company failed to do so.

Initially, the mining project was supposed to be completed in 1998.

"Namnam's gross inefficiency has triggered serious conflicts between Petrobangla and the builder," one source said.

Highly expensive mining equipment on the surface and underground are now rusting due to lack of use, say sources in the Madhyapara Granite Mining Company Ltd (MGMCL), a company of Petrobangla.

Experts say Namnam's repeated failures to complete the project demand that the government oust the company from the site, where it is staying illegally since October-November last year, and get a competent mining company to finish the task. Otherwise, the losses will continue to mount and the project will need heavy reinvestment.

The latest conflict started on November 6 last year when two out of four wires of a lift snapped. At that time, the lift was loading hard rock at a depth of 1,100 feet. The rock was being delivered to the lift using a scope-shuffle and a conveyor belt.

The MGMCL then suspended all mining work.

Soon afterwards, the MGMCL authorities found that the mine's high powered water pump was also faulty and has become unusable.

In such a situation, Namnam repaired the water pump. But Petrobangla naturally asked Namnam to install a brand new pump, which the company declined. In several meetings later, Petrobangla asked Namnam to replace the faulty pump by importing a new one as such pumps are not available in the country. But the company's response has been negative.

The mine was financed under a grossly flawed supplier's credit scheme signed during the previous BNP government's tenure. The loan never came to Bangladesh and the project work began after Petrobangla made a down payment and started "paying back" the loan three years of signing of the contract, sources mentioned.

Petrobangla is now raising questions about the quality of all the installed machinery.

The present situation has also created uncertainty about the services of 322 mine workers, employed earlier in line with the previous deadlines.

The mining project originally outlined a total cost of Tk 650 crore. But Namnam only kept on killing time and depending on receiving Petrobangla's "repayment" of the loan that was never disbursed.

As the government was stuck with such a huge project, it had to extend the time limit and increase the project cost. But all it received was repeated assurance from the company that the mining project would start production someday.

The 'legal' extension of time limit for Namnam expired in June last year. As the project is still to be completed and there is no approved legal framework for a fresh extension of time limit, Namnam sought a Tk 9- crore two-year "expert service" to finish the work. Despite serious anomalies, Petrobangla once again gave it a September deadline for commercial operation and then a November deadline.

Meanwhile, the project authorities have completed surface infrastructures like railway track for transporting hard rock, office buildings, underground pump station, skip hoisting tower and truck weigh-bridge.

Namnam officials admitted that the company could not complete the task due to fund crunches and they are not sure when they can hand over the mine to Petrobangla. But they declined to say anything about poor quality equipment.

Despite repeated attempts, Namnam Project Director Kimm Hui Chun, and Managing Director Richungi could not be contacted.

Managing Director of Madhyapara Granite Mining Project MA Rois Siddique said production from the mine totally depended on Namnam. "We are waiting for them to hand over the mine to us," he said. But he declined to say when that would happen.

Annoyed at Namnam's performance, MGMCL officials said they cannot at all rely on its commitment. The remaining 10 percent work of the project should take three to six months to complete but the company is so incompetent that it might never be able to complete the job.