The financial close of the 1,320 megawatts (MW) power plant in Block-I, expansion of Block-II for installation of another 660MW power plant are milestones in development of Thar coal towards achieving energy self sufficiency for the country, said Sindh Chief Minister Syed Murad Ali Shah.
Speaking at the Conference on Public Announcement Financial Close of two Mines on Wednesday, he said that with the financial close, $1.301 billion will be invested in Thar for generation of 1,980MW electricity and development of two coal mines with production of 10.6 million tonnes per annum (mtpa).
It may be noted that Sino Sindh Resources limited, a Chinese company, has achieved a financial close of $1.06bn for development of 7.8mtpa coal mine in Block-I of Thar coal fields. The mine will supply coal to 1,320MW coal-fired power plant and fetch $2bn in foreign direct investment.
The CM also highlighted the financial close of $215m attained for developing the second phase of 3.8mtpa coal mine as an expansion to the first phase of Sindh Engro Coal Mines Company (SECMC) in Thar coal Block-II, thus reaching 7.6mtpa production under both phases.
Under the first phase, 660MW of power is already being generated by utilising coal from the mine. The second phase will also generate another 660MW with additional $1bn FDI. Further, he said the announcement of contract stage first-year tariff of $42.45 per tonne of Thar coal by the Thar Coal Energy Board for mines of size 7.8mtpa will provide energy to the country at $3.8 per mmBtu in two years.
He also added that the Thar coal price was fast becoming competitive and in near future, clean-coal technologies would be employed for coal to liquids (diesel) and surface gasification leading to urea production plants that would be setup under the China-Pakistan Economic Corridor in Block-VI of Thar coal fields.