Thar Coal Project to help save $6bn: PM Shehbaz Sharif

THAR: Prime Minister Shehbaz Sharif Monday said amid skyrocketing fuel prices, inexpensive energy production from Thar Coal Mines Project would prove to be a game-changer for development of entire Pakistan.

Addressing the inauguration of commercial operations of Phase-II of Sindh Engro Coal Mining Company (SECMC) during his visit to Thar Coal Mines Block-II, Shehbaz said the project could help the government save up to $6 billion, as the expenditure on import of petrol and liquid petroleum touched $24 billion.

He said Thar Coal Project was high on the government’ agenda in view of reduced cost of power generation. Shahbaz inaugurated 330MW Power Plant of Thar Energy Limited (TEL) and also inspected the construction site of SECMC Mine Phase-II at Islamkot.

The premier said not benefiting from the country’s indigenous coal reserves was a huge lapse and announced convening a meeting of stakeholders on Thar Coal mines next week to discuss the formalities.

He said the federal government, in collaboration with the Sindh government, would chalk out a policy framework on the Thar Coal mines project, with the objective to connect it with other coal-powered power plants in the country, producing 4,000 megawatts.

Shehbaz said gas price in the international market had shot up and regretted that the government could not import it for supply to the consumers during the winter. He mentioned that the international cost of coal had come down from $67 to $44 and had prospects of further reduction up to $30. The coal-powered plants, he said, would prove to be a feasible operation for electricity production at the rate of Rs10 per unit.

The prime minister said Thar Coal project would save the country’s foreign exchange and help the economy to thrive. In March 2023, he said Thar Coal Mines Project would be connected through a freight rail track for transportation of coal to other parts of the country.

He lauded the Sindh government, Hubco and Chinese government and companies for training the local professionals and workers, and also appreciated the women working in the field including at water plants and dumping trucks.

He expressed satisfaction that Thar was undergoing a fast development after former prime minister Benazir Bhutto first visited the area in 1996 and envisioned a prosperity plan for the locals.

Foreign Minister Bilawal Bhutto Zardari said Thar once known for malnutrition and infant and maternal mortality rate had now emerged as a game-changer and a public-private partnership model of development.

He mentioned the project had contributed towards provision of job opportunities to the local people of Thar, thus improving their lifestyle. He said that under the public-partnership projects, the barren desert of Thar was now witnessing crop irrigation and fish breeding even with the use of hard water.

Bilawal expressed confidence that the prime minister, with his inspiring ‘Shehbaz Speed’ would materialize the development plans at a fast pace. Speaking about the project, Chief Minister Sindh Murad Ali Shah said the Sindh government had allocated 40 percent equity along with 60 percent contributed by Sindh Engro in the public-private partnership.

Quoting the Geological Survey of Pakistan (GSP), Murad said Thar had 175 billion tonnes of coal reserves of worth $29 trillion or more than the oil reserves of Saudi Arabia and Iran. He added the entire coalfield had been divided into 13 blocks, of which Sindh Engro Coal Mine Company (SECMC) was working in Block-II, a reservoir of two billion tons of coal, and SSRL was engaged in Block-I, a reservoir of five billion tons.

He said had the work on Thar coal not stalled since its first mining in 1991, the project would have produced 10,000 megawatts by now. He termed Sindh province the ‘energy basket of Pakistan’, with immense potential of natural energy resources, including solar and wind energy.

Chinese Ambassador Nong Rong congratulated the Government of Pakistan on the successful completion of the project, and lauded Prime Minister Shehbaz Sharif for his “consistent devotion and firm support” in strengthening Pakistan-China cooperation including in CPEC projects.

He hoped the new power bloc would help overcome energy shortage, and provide reliable and affordable electricity. The envoy thanked the Pakistan Army for providing foolproof security to the Chinese professionals working in the country.

As ‘Iron Brother’, he said China would be happy to continue assisting Pakistan to help it achieve prosperity. Chairman Hub Power Company Limited (Hubco) Habibullah Khan said Hubco continued to be Pakistan’s largest independent power producer and contributed $5 billion to the country in four CPEC projects.

He said Hubco’s investment in production of the cheapest power was significant for ensuring long-term energy security in the country. The Sindh chief minister presented samples of indigenous Thar coal to Shehbaz Sharif, Bilawal Bhutto, and Chinese envoy Nong Rong. Former prime minister Shahid Khaqan Abbasi, senior officials, and representatives of Chinese companies were present.