Govt plans to tap Thar coal reserves

Joint venture projects to generate up to 2,500MW.

ISLAMABAD: The federal government has struck deals with various industrial groups and initiated power generation projects up to 2,500MW from Thar coal reserves. There are currently four joint venture projects to develop and exploit Thar coal reserves, said an official familiar with the matter on Monday.

Partnership with Engro

Engro Corporation plans to develop an open pit mine at Block-II of Thar coal fields of 6.5 million tons per annum and 1,200MW capacity power generator plant at the cost of $3 billion, with Engro owning 60% and Sindh government 40% of the project. The bankable feasibility was completed in August 2010 and this flagship project of Sindh government was part of the projects taken up by Pakistan-China joint energy working group (JEWG). Chinese financial institutions are willing to finance the project if they get a go signal from government of China.

Alliance with Oracle Coal Fields PLC

United Kingdom’s Oracle Coal Fields PLC plans to construct an open pit mine of 5 million tons per annum and a 300MW power plant in the first phase. The project feasibility study was completed and approved by Technical Committee of Sindh Coal Authority. The company entered into agreement with Karachi Electric Supply Corporation (KESC) for constructing the power plant. The pre-development ground work for the mine will start this month whereas the mine development will begin by first quarter of 2013.

Sino Sindh Resources (Pvt) Limited

Sino-Sindh Resources, a subsidiary of Global Mining of China, was allocated Block-I of Thar coal field through international competitive bidding last year. After completion of their feasibility report, Sino-Sindh declared to construct 10 million tons per annum mine and 900MW power plant in execution of the first stage of its plan by 2015.

Underground Coal Gasification plan

Planning Commision allowed Thar’s Block-V Underground Coal Gasification Project and appointed renowned scientist, Dr Samar Mubarakmand to develop local technology and execute the pilot programme to extract Syngas from the field. 100MW power plants based on Sygas can be established in the area and Rs984.93 million has already been released for production and purification of Syngas.  Thar Coal and Energy Board (TCEB) have announced an expression of interest (EOI) for establishing 100MW plants floated internationally to attract foreign investments.

Published in The Express Tribune, May 8^th, 2012.