ISLAMABAD, Sept 20: The Global Mining Company of China which plans to invest $4.5 billion in the Thar Coal project till 2016, will begin mining work by April next year under an agreement signed with the Sindh government, it was announced here on Tuesday.
Liyuang Liu, Chairman of the Global Mining Company, informed the Chairman of Board of Investment Saleem H Mandviwalla that a feasibility study of the Thar Coal Block-I would be completed within six months, and the project would become an example for the world as China would stand side by side with Pakistan to overcome the shortfall of power in Pakistan.
Out of investment of $4.5 billion, $1.5 billion has been earmarked for development of infrastructure and construction of transmission line, road network and communications facilities, Mr Liu informed the BoI chairman.
The government has decided to declare the Thar coal field as special economic zone, the BoI chairman informed the Chinese investors.
Mr Mandviwalla explained that a comprehensive incentive package has been developed to market Thar coal with consultation of all stake-holders.
The package includes 20 per cent international rate of return to firms, 30 years exemption on corporate tax, all custom duties on import of coal mining projects allowed at zero per cent to reduce the initial capital investment, exemption on withholding tax to shareholders on dividend for initial 30 years, exemption for 30 years on withholding tax on procurement of goods and services during project construction and operations to reduce the initial capital investment.
Talking to newsmen at a ceremony to appoint honorary investment counsellor of BoI for Turkey here, Mr Mandviwala said that foreign investors are showing great interest in our mining sector which has vast potential and it can emerge as a leading export sector of the country.
“Mining sector can export more than textile sector. I am very happy to see foreign investors focusing on our mining industry for the first time,” he said.
Mr Mandviwala said that a high-level delegation from UK visited Pakistan recently and the majority delegates showed interest in mining sector.
He said the mining needs only investment and he expected a good amount of domestic and foreign investment.
He said that this day is important day for BOI as a Turkish businessman has offered his services/ expertise to promote trade and investment between his country and Pakistan, and with other countries including those of Middle East and Central Asian States. He hoped that Turkish honorary counsellor Hilal Ibrahim Demirhan would mobilise and bring investors from Turkey and other countries to Pakistan.