The power projects will be developed in five phases of 1,200 MW each. PHOTO: FILE
A Memorandum of Understanding (MoU) was signed between Sindh Engro Coal Mining Company Ltd (SECMC), China Power International Holding Ltd (CPIH), and Sino Sindh Resources (Pvt) Ltd (SSR) to develop Thar coal based power plants in Sindh with a generation capacity of 6,000 megawatts (MW).
According to the MoU, the parties have agreed to jointly develop coal-fired power projects with a total installed net capacity of 6,000 MW in Sindh, Pakistan, , within the next 10 years, which will be expected to use lignite coal mined from Block-I and Block-II in Thar Coalfields.
CPIH will be the majority shareholder and will be responsible for the implementation and execution of the power projects subject to the signing of the formal agreement and the approval of Pakistan Government.
The power projects will be developed in five phases of 1,200 MW each. Coal mining will be independently developed by SSR and SECMC for Block-II and Block-II, respectively, who will supply coal based on the coal demand created by the power projects developed by CPIH.
CPIH is a wholly-owned core enterprise of China Power Investment Corporation, one of five State Power Corporations in the People’s Republic of China. The principal business of CPIH is to develop, construct, own, operate and manage large power plants. Currently the company is managing power plants with a generation capacity of more than 23,000 MW.
SSR and SECMC are the developers of Thar Coal Mining Blocks-I and Block-II, respectively.
The Thar coalfields contain the world’s seventh largest coal reserves estimated at 175 billion tonnes, capable of generating 100,000 MW over the next 200 years, according to the government of Sindh.
Thar coal also has the advantage of economies of scale, which will result in a progressively lower coal price and predictable electricity price as the mining operation scales up and more power plants are added. Utilisation of Thar coal for power generation will result in huge forex savings.
Published in The Express Tribune, August 16th, 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (5)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
Desi company must have majority shares. Try fauji foundation
We keep talking about less than a dozen blocks of Thar -- thanks to US Geological Survey and JT Boyd finds in 1980s. Kindly find a suitable site for a coal mine that could produce 70,000 to 80,000 million tons to enable power generation of 10,000 plus MW. First a company capable to operate this big mine is needed then power plants around this mine -- big and small to generate mega MWs. Oh! we forgot the water because it is essential in running power plants. A canal or pipeline to carry water -- another operator needed. GOOD LUCK -- keep on dreaming!!!
In case anyone hasn't noticed Engro Coal Mining Company is a shell corporation - has zero experience in mining coal - only coal asset is a couple of Thar Coal leases - spends all it's efforts trying to get the govt of Pakistan to finance the development of Thar Coal and periodically putting out press announcements implying that "big things" are just around the corner. This announcement isn't much different than prior "big thing" announcements - no money invested by any of the participants - no hard commitments - just lots of press.
Being hopeful is good, however, we needn't forget that it's only an MOU.
Great News! Hope they start working on it on priority basis.