AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, September 16, 2012 (PPI-OT): Sindh Minister for Information Mr. Sharjeel Innam Memon has said that the quality of Thar Lignite Coal is at par or even better than the lignite mined in other parts of the world including in India which has extension of same coalfield. The impression that Thar Coal is not viable for mining and power generation is based on misconception and lack of knowledge.
This he said in a statement issued here on Sunday referring the news item published in a section of press. Informing the actual picture and the potential of THAR COAL and its current state of projects he said that the Renowned international companies like RWE Germany, Oracle Coalfield UK, SRK United Kingdom, Sino Coal China, North East Coal Bureau China and China Coal Technology and Engineering Group have done detailed feasibilities in Thar and all of them concluded that Thar Coal Mining is technically, economically and environmentally viable project and this coal can be used for power generation and other petro chemical uses, he added.
He informed that Presently three companies viz, Sindh Engro Coal Mining Company, Oracle Coalfields UK and Sino-Sindh Resources China have completed their Detailed Feasibility Studies and their projects of ‘open cast mining’ are expected to start within this year, provided arrangement of necessary financing.
These three projects has total power generation planned in the first Phase is 2100 MW by 2016. The Chinese Financial Institutions are ready to finance the Joint Venture Project of GoS-Engro provided Government of Pakistan commits Sovereign Guarantees for both Mining and Power Projects. Sharjeel Innam Memon further informed that apart from these ‘open cast mining projects’, the Planning Commission, in July 2009, has approved an R and D Underground Coal Gasification Project and engaged Pakistan’s most renowned scientist Dr. Samar Mubarakmand to develop a local technology and execute the Pilot Project.
The Project is for production of Syngas from Thar and based on Syngas Power Plant of 100 MW can be established. The team of Dr. Samar Mubarakman has successfully completed one Gasifier and carried out Test Burn in Dec. 2011. Mr. Memon said, the Planning Commission, GoP conducted Project Appraisal in June, 2012 and decided that the pilot project comprising one gasifire (36 wells) would be operationalized for power generation of 8-10 MW electricity within a period of 10-12 months. Funds amounting to Rs.1.8 bn to cover the cost of gas purification plant, power generation units (8-10 MW) and establishment / O and M charges for one year are being provided by GOP. Out of these, Rs. 900 million have been released recently.Recently, the GENCO, under a policy guideline of Government of Pakistan, is converting its 800 MW RFO based Jamshoro Thermal Power Station to coal and also setting up a new 600 MW coal fired power plant at Jamshoro, unfortunately both these power plants are being designed on imported coal. Recent studies carried on Lignite Transportation confirmed that Thar Lignite can be transported via trucks or rail to other parts of the country.
This has in fact broadened the scope of Thar Coal from integrated mine mouth power plant to utilizing the coal in power plants located elsewhere. The Government of Sindh has requested the Federal Government that conversion of existing 800 MW and new 600 MW power plant at Jamshoro be designed on Thar coal specifications, GENCO should sign a coal off-take agreement with GoS-Engro Joint Venture Project and GoP provide sovereign guarantee for debt portion of Mining Project to the Chinese financial institutions. With this initiative, the 6.5 million ton per annum coal mining project at a cost of US$ 1.3 bn can be started immediately using its own equity till financial close of the project is achieved. There are no additional infrastructural requirements at Jamshoro.
The Government of Sindh considers that it would be a great tragedy if despite availability of huge coal resources in the country new power plants are based on imported coal requiring more than US$ 600 million per annum. This will be a huge drain on precious foreign exchange and the price of coal will always be subject to international market fluctuation, he concluded.
For more information, contact:
Information and Archives Department
Directorate of Press Information
Government of Sindh
95-Sindh Secretariat 4-B, Karachi
Tel: +9221 9920 4423