KARACHI, July 30: A memorandum of understanding has been signed between the Sindh Coal Authority and a Chinese firm, China National Machinery Import and Export Corporation (CMC), for development of the Sonda-Jherruk coalfield for power generation.

The Sonda-Jherruk coalfield, according to an official press release, is the second largest coalfield in Sindh, with more than 7 billion tons of coal. It is located about 150 km to the north-east of Karachi and about 30 km south-east of Hyderabad. All the infrastructure facilities are available.

According to the MoU, the Chinese firm will arrange investment and conduct a detailed feasibility study for development of a coal mine of one million tons annual production capacity, so as to assess availability of coal deposits on a long-term basis to meet the requirements and establishment of 250 mw minemouth, indigenous, coal-fired power plant at the Sonda-Jherruk coalfield. The project, which will be undertaken on a Build Own and Operate (BOO) basis or on turnkey basis, envisages an investment of around $500 million.