TC Sep-Oct 2022 Issue

Thar Coal Mining: a game
changer for Pakistan
Prime Minister Shehbaz Sharif has
said amid skyrocketing fuel prices,
inexpensive energy production from
Thar Coal Mines Project would prove
to be a game-changer for development
of entire Pakistan. Addressing the
inauguration of commercial operations
of Phase-II of Sindh Engro Coal
Mining Company (SECMC) during
his visit to Thar Coal Mines Block-II,
Shehbaz said the project could help
the government save up to $6 billion,
as the expenditure on import of petrol
and liquid petroleum touched $24
billion.
He said Thar Coal Project was high
on the government’ agenda in view of
reduced cost of power generation. He
inaugurated 330MW Power Plant of
Thar Energy Limited (TEL) and also
inspected the construction site of
SECMC Mine Phase-II at Islamkot.
He said the federal government,
in collaboration with the Sindh
government, would chalk out a policy
framework on the Thar Coal mines
project, with the objective to connect
it with other coal-powered power
plants in the country, producing 4,000
megawatts.
Shehbaz said gas price in the
international market had shot up
and regretted that the government
could not import it for supply to the
consumers during the winter. He
mentioned that the international cost
of coal had come down from $67 to $44
and had prospects of further reduction
up to $30. The coal-powered plants,
he said, would prove to be a feasible
operation for electricity production at
the rate of Rs10 per unit.
The prime minister said Thar Coal
project would save the country’s
foreign exchange and help the
economy to thrive. In March 2023, he
said Thar Coal Mines Project would be
connected through a freight rail track
for transportation of coal to other parts
of the country.
He lauded the Sindh government,
Hubco and Chinese government and
companies for training
the local professionals
and workers, and also
appreciated the women
working in the field
including at water plants
and dumping trucks.
He expressed satisfaction
that Thar was undergoing
a fast development after
former prime minister
Benazir Bhutto first
visited the area in 1996 and envisioned
a prosperity plan for the locals.
Foreign Minister Bilawal Bhutto
Zardari said Thar once known for
malnutrition and infant and maternal
mortality rate had now emerged as a
game-changer and a public-private
partnership model of development.
He mentioned the project had
contributed towards provision of job
opportunities to the local people of
Thar, thus improving their lifestyle. He
said that under the public-partnership
projects, the barren desert of Thar was
now witnessing crop irrigation and
fish breeding even with the use of hard
water.
Bilawal expressed confidence that
the prime minister, with his inspiring
‘Shehbaz Speed’ would materialize
the development plans at a fast pace.
Speaking about the project, Chief
Minister Sindh Murad Ali Shah said the
Sindh government had allocated 40
percent equity along with 60 percent
contributed by Sindh Engro in the
public-private partnership.
Quoting the Geological Survey of
Pakistan (GSP), Murad said Thar had
175 billion tonnes of coal reserves of
worth $29 trillion or more than the oil
reserves of Saudi Arabia and Iran. He
added the entire coalfield had been
divided into 13 blocks, of which Sindh
Engro Coal Mine Company (SECMC)
was working in Block-II, a reservoir of
two billion tons of coal, and SSRL was
engaged in Block-I, a reservoir of five
billion tons.
He said had the work on Thar coal not
stalled since its first mining in 1991,
the project would have produced
5
10,000 megawatts by now. He termed
Sindh province the ‘energy basket of
Pakistan’, with immense potential of
natural energy resources, including
solar and wind energy.
Chinese Ambassador Nong Rong
congratulated the Government of
Pakistan on the successful completion
of the project, and lauded Prime
Minister Shehbaz Sharif for his
“consistent devotion and firm
support” in strengthening Pakistan-
China cooperation including in CPEC
projects.
He hoped the new power bloc would
help overcome energy shortage,
and provide reliable and affordable
electricity. The envoy thanked the
Pakistan Army for providing foolproof
security to the Chinese professionals
working in the country.
As ‘Iron Brother’, he said China
would be happy to continue assisting
Pakistan to help it achieve prosperity.
Chairman Hub Power Company
Limited (Hubco) Habibullah Khan
said Hubco continued to be Pakistan’s
largest independent power producer
and contributed $5 billion to the
country in four CPEC projects.
He said Hubco’s investment in
production of the cheapest power
was significant for ensuring longterm
energy security in the country.
The Sindh chief minister presented
samples of indigenous Thar coal to
Shehbaz Sharif, Bilawal Bhutto, and
Chinese envoy Nong Rong. Former
prime minister Shahid Khaqan Abbasi,
senior officials, and representatives of
Chinese companies were present.
Courtesy - media