UK firm to invest $610m in Thar coal
Oracle Coalfields reveals plans for open pit coal mining.
KARACHI:
The UK firm Oracle Coalfields is set to invest $610 million to develop an open pit coal mine in Thar, according to its CEO Shah Rukh Khan. The project is expected to produce five million tons of coal, which will fuel a planned 300 megawatt (MW) power plant for the Karachi Electric Supply Company (KESC), he said. He was addressing a press conference along with the secretary of the Sindh Board of Investment and the Coal and Energy Development Department, Mohammad Younus Dagha, on Monday.
Khan said that the equity portion of financing for the project is ready, while the debts will be financed from outside. A lot of lenders had shown keen interest and were amenable to loaning money for the project because the KESC, which will buy all output from the mine, is a trustworthy company, he added. Referring to a feasibility study Oracle recently concluded, Khan remarked that the report had underlined the technical and economical viability of the project itself as well.
He said that Oracle had signed a memorandum of understanding with the KESC to develop a 300 MW mine-mouth power plant at the site. Khan said that the company was also undertaking a comprehensive environment and social impact assessment in compliance with both local and international regulatory requirements.
Speaking on the occasion, Dagha said that the mine has been leased for 30 years, extendable for more if needed. Responding to a question, he said that the first project cycle for the installation of a transmission line between Thar and Matiari has been completed and will cost Rs20 billion. To another question, he said that electricity from coal will cost 10 to 11 cents per unit, compared to oil-fired power plants that produce at 22 to 25 cents per unit.
Khan expects initial development work to be initiated by late 2012 and the mine to be in production by 2014.
Published in The Express Tribune, February 14th, 2012.
The UK firm Oracle Coalfields is set to invest $610 million to develop an open pit coal mine in Thar, according to its CEO Shah Rukh Khan. The project is expected to produce five million tons of coal, which will fuel a planned 300 megawatt (MW) power plant for the Karachi Electric Supply Company (KESC), he said. He was addressing a press conference along with the secretary of the Sindh Board of Investment and the Coal and Energy Development Department, Mohammad Younus Dagha, on Monday.
Khan said that the equity portion of financing for the project is ready, while the debts will be financed from outside. A lot of lenders had shown keen interest and were amenable to loaning money for the project because the KESC, which will buy all output from the mine, is a trustworthy company, he added. Referring to a feasibility study Oracle recently concluded, Khan remarked that the report had underlined the technical and economical viability of the project itself as well.
He said that Oracle had signed a memorandum of understanding with the KESC to develop a 300 MW mine-mouth power plant at the site. Khan said that the company was also undertaking a comprehensive environment and social impact assessment in compliance with both local and international regulatory requirements.
Speaking on the occasion, Dagha said that the mine has been leased for 30 years, extendable for more if needed. Responding to a question, he said that the first project cycle for the installation of a transmission line between Thar and Matiari has been completed and will cost Rs20 billion. To another question, he said that electricity from coal will cost 10 to 11 cents per unit, compared to oil-fired power plants that produce at 22 to 25 cents per unit.
Khan expects initial development work to be initiated by late 2012 and the mine to be in production by 2014.
Published in The Express Tribune, February 14th, 2012.