Thar coal project tariff to fall: SECMC

Globally for any mining industry, it said, increased capacity offers substantial economies of scale r

KARACHI/ NAROWAL: Sindh Engro Coal Mining Company (SECMC), while responding to an article titled “Thar coal may become uncompetitive if high cost trends continue” published in The Express Tribune, has said that international benchmarks are based on averages of mature mines with production capacities significantly higher than the current capacity of Thar block-II mine. Globally for any mining industry, it said, increased capacity offers substantial economies of scale which, in the long run, reduces the price. The tariff for Thar block-II will go down from the current levellised tariff of $60 per ton with production of 3.8 million tons per annum to $46 per ton once the mine expands to 7.6 million tons, it said. “With subsequent expansion, the tariff will fall further, which will be applicable to all IPPs in block-II. In fact, right after phase-II, the cost of block-II lignite at $4.6 per mmbtu will be less than the landed cost of imported coal at $4.8, which is being used for power generation in Pakistan,” it said. 

Published in The Express Tribune, July 17^th, 2018.

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