Barely breaking even: Power crisis forcing coal contractors out of business

Extraction rates fall from 300 to 60 truckloads a day due to power outages.

HANGU: Around 100 coal mines have been closed down and it is feared the 90 remaining will also become dysfunctional because of the power shortage in Doli, Lower Orakzai Agency. These concerns were shared by coal contractors with media teams visiting on Wednesday to see the decline in the black gold – coal – business.

The contractors, who run the coal mines, shared they primarily operate their business on diesel which is unaffordable in the long run.

Discussing their concerns with members of the press, the contractors feared their mines will soon be shut down due to a lack of electricity, leaving the miners and labourers unemployed.



Haji Noor Akbar, a contractor, told The Express Tribune even though political authorities and the mineral department make millions in tax, they ignore their problems.

“We have been facing a severe crisis because of electricity and if the situation keeps worsening, we will be left with no choice but to leave this work.” Akbar added the extraction rates have slashed down from 300 to 60 trucks per day.

Haji Khadim Hussain, a coal contractor from Orakzai, said he spends millions in purchasing diesel to continue excavating coal.

“Doli is the richest coal hub in the tribal areas. If the government provides us electricity from Meshti, our cost will reduce from Rs30 million to Rs0.5 million and we will be able to produce more.”

Thousands of workers have lost their lives in accidents which occur because of minimal safety and security on the job. Now, “the power supply crisis will drag us to unemployment,” said a worker.

They demanded the government take measures to restore a consistent power supply to the area which can boost business opportunities in the hub.

Published in The Express Tribune, May 9^th, 2014.