The Chief Minister of Sindh has approved the third phase of the project to expand the Thar coal mine, which is estimated at 15.8 billion Rupees to drill 12.2mn tons of coal per year.
“The third stage will reduce the price of coal to $ 27 per ton, making it the cheapest fuel for the country’s electricity generation, and reduce the CPPA basket tariff to 15.05 rupees / kWh, which will save consumers 60 billion rupees per year. In addition to this, the Sindh government will collect Rs 10 billion in royalty revenue every year. “
He made the remarks while presiding over the meeting at CM House last week.
The meeting was attended by Sindh Energy Minister Imtiaz Sheikh, Sajid Jamal Abro, Energy Secretary Abubakar, Thar Coal Board Member Tariq Shah, Mushtaq Soomro, CEO Engro Ahsan Zaffar, Engro CEO Ghias Khan and Deputy Chairman of House of Habib Salman Burni, Vice President Tayab Tareen, HUBCO CEO Kamran Kamal, Saleemullah Memon of HUBCO, SECMC CEO Amir Iqbal, GM Commercial SECMC Talha Lodhi, SECMC CFO Muhammad Muddasir, GM Tech Mines Faisal Iqbal Siddiqi.
Syed Murad Ali Shah said Thar Coal’s journey began in 2009 with a joint venture between the government of Sindh and Sindh Engro to develop Thar coal.
“There were several issues associated with the project, and each issue could delay the implementation of the project,” he said, adding, “But it was only thanks to the strong commitment and determination of the Sindh government that the project was launched on July 10, 2019. “
CM was told that liquefied natural gas cost $ 35 per million BTU, imported coal at 9.7 per million BTU, fuel oil (RFO) at $ 12.4 per million Btu, and Thar coal at 5.95 per million BTU. According to the center, the figures show that the cheapest source of energy is Thar coal.
CM reported that the first phase (July 2019) drilled 3.8 million tonnes per annum to generate 660 megawatts. In the second stage, 7.6 million tons per year is be excavated to generate 1,320 MW of capacity, and in the third stage, after expansion, 12.2 million tons per year will be drilled at 1,980 MW.
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