KARACHI, April 20: A tripartite memorandum of understanding (MoU) has been signed between a Ukrainian firm Ukrinterenergo, Hyderabad-based Fateh Group and the Sindh Coal Authority to develop the Lakhra coalmine field, explore coal mining at Sonda-Jherruck and set up a coal-based electric power generating station of 300 megawatt at Dadu.

Irfan Marwat, the Sindh Mine and Mining Minister, who led a delegation to Ukraine and returned on Tuesday, told a press conference on Wednesday that the coal washing plant would provide contamination-free coal to the expanding cement sector and would be an important import substitution.

“Discussions were held with the Ukrainian firm on April 14 and 15,” he said, pointing out that the Ukrainian firm had shown inclination to transfer technology to the Fateh Group. The group is also interested in exploring coal in Sonda-Jherruck, developing the Lakhra coalmine field and setting up a coal-based power plant.

“The coal-based power plant is being set up on ‘built, own, operate and transfer basis’,” he said, adding the Fateh Group would eventually take over the plant.

He said the construction of two coal-based power plants of 300 megawatt each were being set up by the Chinese Shenhua Group Corporation at Thar coalfield, and another 450 megawatt at Lakhra, and coal mining at Sonda-Jherruck was being done for setting up of a 300 megawatt plant.

“We will need additional 10,000 megawatt electricity in our system by the year 2010, as electricity consumption is increasing at the rate of 10 per cent every year,” the minister said, stressing that the focus is now on coal-based power generation as Pakistan possesses biggest coal reservoir after China.

“Our coal is contaminated with sulphur,” he said and added that coal washing technology was available in East Europe from where the Sindh government was exploring technology transfer.

He said that in the MoU signed recently he had taken care that a training facility be set up to train the local people of the area before equipment and machines were transferred. He made it clear that the government wanted the local people to manage and operate all the projects in their area. Coals are found in remote areas where it is utmost importance to create job generation facilities.

Sindh has proven coal deposits of over 184 billion tons. The largest coal deposits of 175.59 billion tons are in Tharparkar area. The Thar coalfield is spread over 9,100 square kilometres located at 380 km from Karachi.