SECMC signs coal deals with TEL, ThalNova

KARACHI: The Sindh Engro Coal Mining Company (SECMC) signed two separate coal supply agreements with the Thar Energy Limited (TEL) and ThalNova to supply 1.9 million tonnes of coal per annum each, a statement said on Monday.

ThalNova is a joint venture between Thal Power (Private) Limited and Nova Powergen Limited, subsidiaries of Thal Limited and Novatex Limited, respectively. Thar Energy Limited is the subsidiary of Hub Power Company Limited (Hubco), which is one of the largest IPPs in Pakistan.

Thar Energy Limited and ThalNova are setting up mine-mouth power plants of 330MW each at Thar Coal Block II, fully capable of running 100 percent on Thar coal, it added. Both the power plants are scheduled to be commissioned by early 2020.

After commissioning of these two projects, SECMC would be mining 7.6 million tonnes per annum of coal from Thar Block-II, which will reduce the coal tariff to approximately $41.35 per tonne, which will be equivalent to imported coal on USD/MMBtu basis, the statement said.

Earlier in April 2016, SECMC and Engro Powergen Thar Limited (EPTL) achieved combined financial close to supply 3.8 million tonnes per annum of coal to EPTL. Currently, a project to mine 3.8 MTPA and 660MW plant is progressing ahead of schedule and is expected to come online by June 2019.

On behalf of SECMC, the CSA was signed by CEO Shamsuddin Shaikh, while Khalid Mansoor, CEO of Hubco and Thar Energy Limited and Khalid Siraj Subhani, CEO and Rana
Zulfiqar, COO of ThalNova signed the agreements at the ceremony held at SECMC’s office.

Shaikh said that SECMC aggressively pursuing expansion of its mining project with an aim to address the electricity shortage in the country and to provide affordable electricity to the public.

In order to ensure the energy security of Pakistan in the long run, development of indigenous coal is essential, he added. “It will not only become cheaper than the imported coal as the mine expands, but will also contribute in other benefits such as increase in employment, in particular to the locals, infrastructure development and significant savings in foreign exchange against imported coal,” he added.