KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Wednesday said his government had achieved milestones in developing Thar coal for Pakistan’s self-sufficiency in energy by achieving financial close for installation of a 1320-megawatt power plant in Block-I and expansion of Block-II for development of another 660-MW power plant.

“Under these financial closes $1.3 billion will be invested in Thar for generation of 1,980-MW electricity and development of two coal mines to produce 10.6 metric ton per annum,” he said while speaking at a conference on public announcement of the financial close of two mines here at CM House.

The conference was attended by Energy Minister Imtiaz Shaikh, Law Adviser to CM Murtaza Wahab, energy secretary Musadiq Khan, principal secretary to CM Sajid Jamal Abro, Thar Coal and Energy Board chief Tariq Shah and others.

“This is really a New Year gift our government is presenting to the people of Pakistan, particularly people of Sindh,” said the chief minister.

Mr Shah said the first threat to the national development was terrorism and then energy crisis was the dangerous threat.

“We crushed terrorists and then focused on development of Thar coal to generate electricity; and now we are also succeeding in defeating loadshedding,” he said.

A government spokesperson said that the Sino Sindh Resources Ltd, a Chinese company, had achieved a financial close of $1.06bn for development of 7.8mpta coal mine in Block-I of Thar coalfields.

The mine will supply this coal to 1,320-MW coal-fired power plant, which would bring in another $2bn of foreign direct investment (FDI).

Another achievement, the conference was told, was the financial close of $215 million achieved for developing the second phase of 3.8mpta coal mine as an expansion to the first phase of the Sindh Engro Coal Mines Company (SECMC) coal mine in Thar Coal Block-II, thus reaching 7.6mpta under both phases.

“Under the first phase of this mine, 660-MW power is already being generated. The second phase will also generate another 660-MW with additional $1bn of FDI.”

The Sindh government owns 55 per cent shares of the SECMC with Engro at 12pc, Thar Ltd 12pc, HBL 9.5pc and the remaining shares are owned by other two partners.

The participants were informed that the third and equally significant achievement was 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 the size of 7.8mpta.

CM Shah said with that tariff, Thar coal would provide energy to the country at $3.8 per MMBTU in two-year time.

He said any new domestic gas reserve would provide energy at almost $7 per MMBTU while Pakistan imports LNG at $10-12 per MMBTU.

He acknowledged the support of the China-Pakistan Economic Corridor framework for financing the projects in Thar.

“For every 3.8mpta mine, Sindh gets royalty of about $20m per annum indexed with the coal tariff,” he said, adding: “This amount of $20m is being spent on the social and economic uplift of the people of Thar.”

He 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 setting up of urea production plants under CPEC in Block-VI of Thar coalfields.

“This initiative will literally revolutionise Pakistan’s energy sector — Thar will indeed change Pakistan,” he said.

Mr Shah said the achievement of those milestones were gifts of Sindh to the people of Pakistan in 2020.

Published in Dawn, January 2nd, 2020