HYDERABAD, July 9: The Fateh Group has started coal exploration at the Lakhra coal field after being awarded a license by the Sindh government. It plans to ensure 450 megawatts of electricity in next five years after preparation of a feasibility report in this regard. Briefing journalists at the Lakhra coal field in the Jamshoro district on Saturday, Fateh Group director Mohammad Saleem said: “We want to make coal exploration an industrial base to promote coal-based power production and meet the rising cost of petroleum products. Currently, we are importing two million tones of coal per annum”.

The Fateh Group recently signed a Memorandum of Understanding with Ukraine and the Sindh Coal Authority for coal exploration on an area of 8626 acres at Lakhra on a 30 year lease basis.

Mr Saleem said coal explored in the area would be utilized to meet needs of the cement industry, mining and brick kilns.

In addition to the 8,626 acres, he said, another 5,000 acres would to be brought under exploration under the agreement in the same field.

The MoU was singed on April 15, 2005, after Sindh Minister for Mines and Mineral Irfanullah Marwat visited Ukraine.

This is a $600 million project and is also supported by the federal government.

Mr Saleem promised jobs to 500 people initially.

He said coal field’s demarcation had been made and exploration had begun one and half months ago.