This is with reference to Farrukh Saleem's article "Thar coal: claims vs facts" (July 4). The total lignite reserves estimated by Geological Survey of Pakistan in Thar are around 175 billion tons which are spread over an area of 9,000 square-kilometres. The US Geological Survey also undertook the estimation of Thar coal reserves and issued a report in 1994 confirming the presence of huge lignite coal reserves. The Asian Development Bank carried out a study on Thar in 2007 which says: "Figures provided by the Geological Survey of Pakistan (GSP) state that the resource has a potential of 175 billion tons… From examination of the detailed material provided by the GSP, there is no reason to doubt that a resource exists of the scale claimed".
As per the US Geological Survey format, Thar coal resources are categorised in measured (proven), indicated and inferred categories based on the spacing of drill-hole data which is collectively called 'total reserves'. Measured (proven) reserves: located within 400-metre radius of the drill hole. Indicated reserves: located within 1.2-kilometre radius of the drill hole. Inferred reserves: located within 4.8-kilometre radius of the drill hole. Sindh Engro Coalmining Company (SECMC), a joint venture of Engro PowerGen and GoS for coalmining in Thar Block II, has utilised previous studies to confirm the reserve situation. It has already developed a geological model to identify the initial and final mining areas. It has been confirmed that total reserves for Block II are above two billion tons and are enough to supply fuel for power plants of more than 4,000MW capacity for at least 30 years of operation.
Thar reserves could be compared to Saudi Arabia's oil reserves in terms of energy contents. The calculation can be done by converting the total energy of Thar coal reserves into tons or barrels of crude oil. As for the lenders' interest in the financing of coal projects, the World Bank has recently financed a $3.7 billion coal-based power project in South Africa with a capacity of 4,800MW. The proposed strategy for the utilisation of Thar lignite is to generate power from mine-mouth power plants, which have been successfully installed in many countries including Germany, Greece, China and Australia where the major dependence of power generation is on coal. This is the only cost-effective approach when compared to the other expensive option of the imported furnace oil-based power plants.
RWE of Germany undertook a detailed bankable feasibility study for the Thar coalmining and power generation project in 2003. China's Shenhua also did a feasibility study in 2006 and contested for a power tariff which was not approved by the then government. Hence, there is no doubt that the Thar coalmining and power project is technically and economically viable. The proposed Thar coal project is a potential fortune-turning proposition for the country which will not only address the severe power crisis and bring energy sufficiency to the country, but will also create huge economic activity besides developing human capital through the execution and operation of the state-of-the-art mining and power generation projects.
