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TRANSCRIPT
Vision
To position Sindh as the power house of the region
MissionTo develop Thar Coal as a major source of power generation for En-
ergy & Economic Security of the country and as a Hub of Petro Chemi-
cal Industry
GoalTo generate at least 10,000 MW by 2020
We offer
• Huge proven reserves with authentic data
• Higher returns for investors
• Business friendly policies & environment
• Excellent incentives, concessions & protections
ii
Thar Coal – The Most Attractive Investment Opportunity 01
Quality of Coal at Thar 02
Investment Status in Thar Coalfield 03
Fiscal Incentives for Development of Indigenous Coal Resources 04
Investment Opportunities in Thar 05
Procedure for Allocation of Blocks 05
Environment & Social Studies 06
Water Master Plan 06
Thar Coal Resources at a Glance 07
Thar Coal & Energy Board - its role & functions 08
Composition of Thar Coal & Energy Board 09
Thar Coalfield Blocks Layout 10
Infrastructure available at Thar 11
Infrastructure planned at Thar 12
Table of Contents
iii
Thar Coal – the most attractive Investment Opportunity
1. World’s biggest lignite reserves
Pakistan’s coal resource potential is estimated to be around 186 billion
tonnes out of which 175 billion tonnes are found in Thar — the largest lig-
nite deposit in the world. Thar Coalfield is located 360 km from Karachi
port in the south eastern arid zone region of Pakistan which is one of the
most peaceful & harmonious area of the country. Thar Coal resources
have an estimated potential of generating 100,000 MW of electricity for
a period of 300 years; thus, providing an opportunity for large scale min-
ing & power generation over a long period of time.
2. Central part of future Energy Mix in Pakistan
To address the persistent energy gap, the large indigenous coal (lignite)
resources at Thar in Sindh Province form an integral part of Pakistan’s
long term energy security strategy. Thar resource has a very good po-
tential to be a viable option for providing dependable indigenous source
of energy. Development of Thar is envisioned to emerge through a part-
nership of government and the private sector, wherein the private sector
would assume investment risk subject to viable commercial market con-
ditions and the government would provide the enabling environment nec-
essary to facilitate such investments.
Thar Coal - Means to Energy Security in Pakistan
1
Thar lignite has a
stripping ratio of 6:1
and heating value of
5,000 to 5,500 Btu/lb
which is better than
many lignite re-
sources being suc-
cessfully used for
mining and power
generation:
• India’s Neyvelli lignite has a stripping ratio of 7:1 and heating value
of 5,200 Btu/lb. Total generation based on Neyvelli lignite is more
than 2,700 MWs.
• Hungary’s lignite has stripping ratio of 9:1 and heating value of 3035
Btu/Lb and power generation above 1800 MWs.
• Germany’s Rhineland lignite having stripping ratio of 4.9:1 and heat-
ing value of 3830 Btu/lb and is fueling power generation of more than
10,200 MW.
Quality of Coal at Thar
Deposit Stripping Ratio (m³ : t) Heating Value (MJ/kg)
Thar 6.6 : 1 11.6
Kosovo 1 : 1 7.8
Rhenish Area, Germany 4.9 : 1 8.9
Hambach, Germany 6.3 : 1 10.5
Hungary 9 : 1 7.1
Greece 10:1 5.02
Comparison of Thar with Other International Mines
2
GoS has developed 12 blocks so far covering around 1000 sq km out
of 9100 sq km. The status of on-going Projects is given below:
Status of Projects at Thar Coalfield
Thar Coal Blocks Status / Timelines
Investment Status in Thar Coal Field
3
Block-I
Global Mining Company of China
Open cast Mining of 10 mtpa 900 MW
Coal supply to local thermal plants and
cement industry after briquetting
Block-II
Sindh Engro Coal Mining Company
(JV: 40% GoS; 60% Engro)
Open cast mine of 6.5 mtpa & 1200MW
Block-V
UCG Project
Under Ground Coal Gasification Project
2X50 MW IGCC Power Plant Planned
Block-VI
Oracle Coalfields, PLC (UK)
Open cast mine of 5 mtpa
MoU signed with KESC for 300MW
Bankable Feasibility completed March, 2012
Mining Lease issued May, 2012
Coal Production to start by 2015
Power Generation by 2015-16
Bankable Feasibility completed 31st Aug. 2010
Mining Lease issued August, 2011
Project financing activity continued.
Chinese Funding through JEWG is
being solicited
36 bore holes have been drilled.
Test Burn done in Dec. 2011
Power Plant of 8-10 MW is being
established.
Detailed Feasibility Completed Oct. 2011
Mining Lease issued May 2012
Start of Mine development by mid-2013
The following set of in-
centives are available to
facilitate investors for
development of indige-
nous Coal resources of
Sindh for Mining and
Power Generation.
Special EconomicZone• Thar Coalfield is declared has been declared as Special Economic
Zone and all Development Project in Thar region (including coal min-
ing and power generation) have been declared as ‘Projects of Na-
tional Security’.
Guaranteed Rate of Return• 20% (dollar-based) IRR is guaranteed to firms which achieve Finan-
cial Close before 31st December, 2015 for Mining & Power Genera-
tion based on indigenous coal and additional 0.5% i.e. 20.5% IRR for
firms which achieve Financial Close by 31st December, 2014.
Exemptions/concessions• Zero percent customs duties on import of coal mining equipment and
machinery including vehicles for site use.
• Exemption on withholding tax to shareholders on dividend for initial
30 years.
• Exemption on withholding tax on procurement of goods and services
during project construction and operations.
• Exemption for 30 years on other levies including Special Excise Duty,
Federal Excise Duty, WPPF and WWF.
Fiscal Incentives for Developmentof Indigenous Coal Resources
4
Streams of Investment:
The investors may enter into Joint Venture with existing Project Devel-
opers or may opt for acquiring new Blocks for any of the following busi-
ness opportunities.
1. Coal Mining
2. Integrated Coal & Power Generation Project
3. Mine Mouth Power Project
4. Underground Coal Gasification
5. Coal to liquid Technologies
6. Briquetting- Dried lignite from Thar can be transported and utilized by
retrofitted Thermal Power Plants and industry
7. Any other utilization which may be proposed by project sponsors
Procedure for allocation of Blocks
Sindh Mining Concession Rules - 2002 spell out concession award pro-
cedure which is also available at our website www.sindhcoal.gos.pk. The
successful applicant will get Exploration License after signing an MOU
with Sindh Coal Authority. The Exploration license is generally granted for
bankable feasibility studies (BFS) for a period of one year extendable on
valid grounds. The license holder shall be required to submit reports on
quarterly basis. The exploration license granted can be cancelled if con-
ditions of MoU or Exploration License are not fulfilled. After successful
completion of feasibility report, the Exploration License shall be con-
verted into Mining Lease in accordance with the provisions of Sindh Min-
ing Concession Rules 2002.
Investors are expected to submit credible financing plans for the project
including debt/equity financing.
Sindh Coal Authority shall provide all available data of the exploratory
work conducted in a Block to the holder of Exploration License free of
charge.
The investors are also expected to provide firm timelines with three
monthly milestone plan. Preference will be given to those who offer nar-
row timelines leading to early completion of BFS and project execution
phase.
Investment Opportunities in Thar Coal include:
5
Environment and Social Studies
All environmental standards as enunciated in the Pakistan Environmen-
tal Protection Agency (PEPA) Act 1997, relating to environmental pro-
tection, environmental impact and social soundness assessment, shall
be ensured. The Government of Sindh is also conducting Environmen-
tal and Social Studies, Land Use Plan including Resettlement Frame-
work for Thar Coalfields.
Water Master Plan
The policy of the Government to attract foreign investments in Thar Coal
Sector for allocation of various Blocks has enhanced the foreign interest
in Thar Coalfield resulting increased activities of coal mining and power
generation companies, which necessitated the placement of an optimal
Water Master Plan. In view of peculiar hydrological and hydro-geological
conditions of Thar, the early formulation of Water Master Plan is essen-
tial for hydro-related activities, to regulate all project developers and also
to facilitate development of Thar Coalfield. Hence, the Coal and Energy
Development Department is preparing a comprehensive Water Master
Plan for Thar Coal fields including hydro geological, water supply and
Wastewater Management Studies.
6
7
Thar Coal Resources at a Glance
Block Area Sq. Total Moisture Ash Vol. Sulphur Heating Value Fixed Carbon
Km Reserves % % matter % % (As Received) %
bn ton Btu/lb
I 122 3.56 43.13 6.53 30.11 0.92 6398 20.11
II 79.6 2.24 47.89 7.37 25.15 1.12 5008 19.68
III-A 99.5 2.00 45.41 6.14 28.51 1.12 6268 19.56
III-B 76.8 1.45 47.72 9.30 25.49 1.15 4808 16.79
IV 82 2.47 43.24 6.56 29.04 1.20 5971 21.13
V 63.5 1.39 46.82 8.92 30.24 1.20 5682 13.26
VI 66.1 1.65 46.80 5.89 29.34 0.90 5727 16.6
VII 100 2.17 48.27 8.03 25.30 1.16 5440 25.30
VIII 100 3.03 49.57 7.78 24.32 1.44 5302 18.10
IX 100 2.86 48.60 5.92 29.03 0.96 5561 15.73
X 100 2.87 48.99 6.35 30.79 1.17 4840 13.54
XI 101 1.61 49.97 8.07 24.16 1.61 5228 17.26
XII 100 2.34 50.82 5.71 25.00 1.11 5459 17.26
Note: Blocks VII to XII are available for allocation to Project Developers.
In order to fast track the development of coal, especially the largest coal
resources of Thar, one stop decision taking body Thar Coal and Energy
Board (TCEB) was established under the Chief Executive of the Province
with representation from Provincial and Federal Governments. Besides
this, the present Government also established Coal and Energy Devel-
opment Department in April 2009 mainly to focus on the exploration and
development of coal resources of the Province. Thar Coal & Energy
Board acts as one stop organization on behalf of all Ministries, Depart-
ments and agencies of the Government of Pakistan/ Sindh in the matters
relating to approval of the Projects for Coal Mining in Thar and for Coal-
fired Power generation plants or for other uses of Thar Coal. The primary
role of the Board is to facilitate and coordinate with domestic, foreign and
international institutions for speedy development of Thar Coal.
All projects of coal mining, power generation and other uses, in Thar
Coalfield including infrastructure projects are being coordinated and mon-
itored directly by the TCEB. All relevant departments are being coordi-
nated for expeditious completion of the infrastructure projects.
Thar Coal and Energy Board
8
1. Chief Minister Sindh Chairman
2. Federal Minister for Water & Power Vice-Chairman
3. Federal Minister for Finance Member
4. Federal Minister for Law and Justice Member
5. Deputy Chairman, Planning Commission Member
6. Provincial Minister (Irrigation ) Member
7. Provincial Minister (Revenue) Member
8. Provincial Minister (Finance) Member
9. Woman MNA from Thar Region Member
10. Federal Secretary, Ministry of Water and Power Member
11. Chief Secretary, Govt. of Sindh Member
12. Secretary, Coal & Energy Development Dept. Member
13. One eminent Person Member
14. Managing Director, TCEB Member/Secretary
Composition of Thar Coal & Energy Board
9
ROAD NETWORK70 tonnes load carrying capacity metalled road is
available up to Coal field area.
COMMUNICATION Telephone & Internet communication through
Optic fiber cable is available up to Thar Coalfield
area.
DRINKING WATER Reverse Osmosis Plants in Thar are available for
provision of potable water to the inhabitants of
Thar as well as project staff free of cost.
RESCUE STATIONRescue Station in coal mining area at Thar coal-
field covering an area of 8,200 sq. ft. has been
constructed.
LIBRARY A Coal library containing documents having
relevent information on Coal is situated at office
of Sindh Coal Authority.
THAR LODGEThar Lodge at Islamkot with 20-bedded accom-
modation to facilitate foreign and local investors
has been constructed.
Infrastructure Available at Thar
11
TRANSMISSION LINEThe NTDC is executing two schemes for power evac-
uation from Thar:-
Phase – I: Transmission Line from Thar Coalfield to
Matiari
Phase – II: Transmission Line from Matiari to Rahim
Yar Khan
AIRPORTThe Civil Aviation Authority is executing the work of
construction of Thar Airport at a distance of 8-10 kms
from Thar Coalfield which is expected to be opera-
tional by December 2013.
PROVISION OF HEAVY DUTY ROADFor improvement of Road Network following 3
Schemes are in pipeline:
• From Seaport Karachi to Wango More via Thatta,
Badin (200 km)
• From Wango More to Thar Coalfield (135 km)
• From Hyderabad to Thar Coalfield via MPK, Digri,
Noukot, Mithi
(155 km)
PROVISION OF WATER The GoS is executing schemes of supply of 100
cusecs treated water from Left Bank Outfall Drain to
Thar Coalfield.
EFFLUENT DISPOSALThe GoS is executing a scheme of constructing 50
cusecs mine water drainage channel from Thar
Coalfield which will be completed by Dec, 2013.
RAILWAY LINKPRACS has prepared feasibility for broad gauge rail
link up to Islamkot.
Infrastructure Planned in Progress at Thar
12
Thar Coal – Investment Opportunities in Pakistan
By
Ajaz Ali Khan
Secretary Coal & Energy Development Department/
MDThar Coal & Energy Board
Government of Sindh, Pakistan
Key Energy Issues Facing Pakistan
• Rising energy demand
• Significant energy shortage
• Energy Mix out of step with world norms
• Continuing long term trend of rising oil prices
• Natural gas demand exceeding supply
• Very large untapped potential source of power
generation fuel in Thar Lignite Deposit
Hydel, 30.3%
Coal, 0.1%
Oil, 35.4%
Gas, 32.4%
Nuclear, 1.8%
Pakistan Power Generation Fuel Mix 2008-09 World Power Generation fuel Mix 2008-09
World Pakistan
A Comparison of Power Generation fuel Mix
Nuclear
Hydel
Gas
Oil
Coal
others
Nuclear 15%
Hydro 16%
Gas 20%
Oil 6%
Coal 41%
Others 2%
Widening Demand & Supply Gap Projection for Pakistan’s Power Sector
Current Installed
Capacity (MW)
Projected Demand Gap (MW)
Year MW
23,412
2015 36,217 12,805
2020 54,359 30,947
2025 80,566 57,154
2030 113,695 90,283
Future Energy Demand Supply Gap is Alarming!
Source: Pakistan Electric Power Company (PEPCO) 3
Thar Desert is one of the largest coal reserve estimated at 175 billion ton
Sindh 186 billion tons
Punjab 235 million tons
Balochistan 217 million tons
KP 90 million tons
Azad Kashmir 9 million tons
Pakistan’s Coal Reserves
Thar
Thar Coal Reserves Block Reserve
bn ton
Moisture
%
Ash % Vol.
Matter %
Sulphur % Fixed Carbon
%
I 3.56 43.13 6.53 30.11 0.92 20.11
II 2.00 48.89 5.21 26.55 1.05 19.68
III-A 2.00 45.41 6.14 28.51 1.12 19.56
III-B 1.45 47.72 9.30 25.49 1.15 16.79
IV 2.47 43.24 6.56 29.04 1.20 21.13
V 1.39 46.82 8.92 38.24 1.20 13.26
VI 1.65 48.32 7.62 36.22 1.52 16.6
VII 2.17 48.27 8.03 25.30 1.16 25.30
VIII 3.03 49.57 7.78 24.32 1.44 18.10
IX 2.86 48.60 5.92 29.03 0.96 15.73
X 2.94 48.99 6.35 30.79 1.17 13.54
XI 1.61 49.97 8.07 24.16 1.61 17.26
XII 2.34 50.82 5.71 25.00 1.11 17.26
Global Lignite Qualities
Country Moisture %
Ash %
Volatile
Matter %
Sulphur %
Australia 65.5 0.6 17.6 0.1
Bosnia 51 2.0 30.3 0.05
Germany 55 10 19.2 0.2
Greece 52 15.1 18.8 0.2
India 48 6.1 25.6 0.6
Kosovo 51 15 20.8 <1.0
Pakistan
(Thar)
46 7.0 28.0 0.7 - 1.1
Poland 52.8 9.8 20.0 0.6
Serbia 45.5 17.0 22.5 0.49
Thailand 30-35 10-28 32 0.8-1.5
Turkey 50 16 22.8 1.7
Deposit Stripping Ratio
(m³ : t)
Heating Value
(MJ/kg)
Thar 6.6 : 1 11.6 (5000 Btu/lb)
Kosovo 1 : 1 7.8 (3350 Btu/lb)
Rhenish Area,
Germany
4.9 : 1 8.9 (3830 Btu/lb)
Hambach, Germany 6.3 : 1 10.5 (4510 Btu/lb)
Hungary 9 : 1 7.1 (3050 Btu/lb)
Greece 10:1 5.02 (2159 Btu/lb)
Comparison of Thar Lignite with other Countries
Credibility of Reserves
Studies Conducted By:
United States Geological Survey RWE of Germany M/s Shenhua of China Sindh Engro Coal Mining Company(SECMC) Oracle Coalfields (UK) Geological Survey of Pakistan Sindh Coal Authority
All studies confirm presence of huge coal reserves
• Thar Coalfield is declared as Special Economic Zone, and projects of
development of Thar declared as ‘Projects of National Security’
• 20% ($ Based) IRR to firms which achieve Financial Close before Dec
2015 for Mine & Power Plants based on indigenous coal and 20.5% IRR
for firms which Financial Close by or before Dec 2014.
• Zero percent customs duties on import of coal mining equipment and
machinery including vehicles for site use.
• Exemption on withholding tax on dividend for initial 30 years.
• Exemption on withholding tax on procurement of goods and services
during project construction and operations.
• Exemption for 30 years on other levies including special excise duty,
federal excise duty, WPPF and WWF.
Fiscal Incentives for Coal Development
Infrastructure Available at Thar
ROAD NETWORK
• 70 tonnes load carrying capacity road is available up to Coalfield area.
COMMUNICATION
• Telephone & Internet communication through Optic fiber cable is available up
to Thar Coalfield area.
DRINKING WATER
• Reverse Osmosis Plants in Thar are available for provision of potable water
to the inhabitants of Thar as well as project staff free of cost.
THAR LODGE
• Thar Lodge at Islamkot with 20-bedded accommodation to facilitate foreign
and local investors has been constructed.
RESCUE STATION
• Rescue Station in coal mining area at Thar coalfield covering an area of
8,200 sq. ft. has been constructed.
LIBRARY
• A Coal library containing documents having relevant information on Thar
Coal, is situated at office of Sindh Coal Authority.
Infrastructure Planned at Thar
TRANSMISSION LINE
• NTDC is executing two schemes for power evacuation from Thar:- • Phase – I: Transmission Line from Thar Coalfield to Matiari
• Phase – II: Transmission Line from Matiari to Rahim Yar Khan
AIRPORT
• Civil Aviation Authority is executing the work of construction of Thar Airport at a distance
of 8-10 km from Thar Coalfield which is expected to be completed by Dec. 2013.
PROVISION OF HEAVY DUTY ROAD
• Govt. of Sindh is executing two schemes for improving roads which will be completed by
September, 2014: • From Seaport Karachi to Wango More via Thatta, Badin (200 km)
• From Wango More to Thar Coalfield (135 km)
RAILWAY LINK
• PRACS has prepared feasibility for broad gauge rail link up to Islamkot.
EFFLUENT DISPOSAL
• The GoS is executing a scheme of constructing 50 cusecs mine water drainage channel
from Thar Coalfield which will be completed by Dec. 2013
PROVISION OF WATER:
• The GoS is executing scheme of supply of 100 cusecs treated water from Left Bank
Outfall Drain to Thar Coalfield. These will be completed by Oct 2014
Ways of Collaboration by Turkish Institutions & Companies
I. Investment in Existing Open-pit Coal Mining/ UCG Projects
II. Investment on Developing Thar Coal-based Power Plant
III. Acquiring New/ Independent Blocks at Thar Coalfield
IV. Investment in Building & Operating Railway Link to Thar
Coalfield
V. Collaboration by Universities/ Training Institutes to upgrade
Polytechnic Institute at Mithi, Thar District.
Thar Coal Blocks Status/ Timelines
Block-I
Global Mining Company of China
Open cast Mining of 10 mtpa 900 MW
Coal supply to local thermal plants and
cement industry after briquetting
Bankable Feasibility completed March, 2012
Coal Production planned to start by 2016
Power Generation by 2016
Block-II
Sindh Engro Coal Mining Company
(JV: 40% GoS; 60% Engro)
Open cast mine of 6.5 mtpa & 1200MW
Bankable Feasibility completed August 2010
Project financing activity continued.
Chinese Funding is being solicited
Coal off-take agreement with GENCO is being finalized
Block-V
UCG Project
Under Ground Coal Gasification Project
& Power Plant Planned
36 bore holes have been drilled.
Test Burn done in Dec. 2011 and Syn gas being produced.
Power Plant of 8-10 MW is being established
Block-VI
Oracle Coalfields, PLC (UK)
Open cast mine of 5 mtpa
Detailed Feasibility Completed
Start of Mine development to begin in mid 2013
JDA signed with KESC for 300 MW
Investment in Existing Open-pit Coal Mining/ UCG Projects
Investment in Developing Thar Coal-based Power Plants
• Mine Mouth Power Plant at Thar Coalfield
• For 300 MW, required infrastructure like water (ground water) for Power
Plant and Transmission Line are available.
• For 600 MW or more, required infrastructure like water (surface water) for
Power Plant and Transmission Line are being provided.
• Power Plant at Jamshoro (280 km from Thar Coalfield) or Badin
(180 km from Thar Coalfield)
• For this option required infrastructure like road network for lignite
transportation, water for Power Plant and Transmission Line are already
available.
• Study conducted by RWE – Germany confirmed the viability of coal (lignite)
transportation from Thar to Jamshoro and Badin.
• Conversion of existing RFO-based Power Plants to Thar Coal
• RFO-based Power Plants at Jamshoro, Guddo, Muzzafargarh etc are
being converted to coal which provides an opportunity to investors
Available Blocks at Thar Coalfield for New
Independent Projects
Block Total
Reserves
(bn tons)
Area
(sq. km)
Moisture
(%)
Sulphur
(%)
Ash
(%)
Heating
Value
(Btu/lb)
Fixed
Carbon %
VII 2.175 100 48.27 1.16 8.03 5440 25.30
VIII 3.035 100 49.57 1.44 7.78 5302 18.10
IX 2.862 100 48.60 0.96 5.92 5561 15.73
X 2.947 100 48.99 1.17 6.35 4840 13.54
XI 1.61 101 49.97 1.61 8.07 5228 17.26
XII 2.34 100 50.82 1.11 5.71 5459 17.26
Building and operating Railway link to Thar coalfield
• Thar lignite can also be transported to other parts of the country
particularly to use in the New or existing Thermal Power Plants being
converted on coal.
• To make transportation of lignite more feasible, the Government had
conducted Feasibility Study through PRACS for providing rail link to
Thar coalfield with existing section of Pakistan Railway track.
• Laying of new track (120-150 km) and replacing narrow gauge to
broad gauge besides building stations, level-crossings & minor
bridges will be required
• The companies may develop the Railway Project from Thar coalfield
to existing track on BOO basis or other agreed structure by Pakistan
Railway.
Collaboration by Turkish Universities/ Training Institutes to
Upgrade Existing Polytechnic Institute at Mithi, District Thar
• It is anticipated that with the development of coal mining, power
generation and related projects there would be a great requirement of
skilled manpower in the area.
• The Government of Sindh plans to upgrade the Polytechnic Institute
Mithi by affiliating it with some international institute of repute which
shall confer its certification to the trainees.
• The existing building of Institute stands over 36,700 square feet, and
is equipped with furniture, fixture and necessary equipment.
• Up-gradation would include, but not limited to, following:-
• Identification of Courses in consultation with Mining & Power Companies
• Developing the Modules for Trainees
• Identifying improvement in existing facilities of the Institute
• Training of Master Trainers and Trainees
• Certification to Master Trainers and Trainees
Thar Block I Mining & Power Project
Company Profile Sino-Sindh Resources Ltd (SSRL).
SSRL is 100% owned by Global Mining (China) company formed for the
purposes of investing in Thar Coalfields by its shareholders.
The company has committed 6 million USD already to the project and has a
surplus 4 million USD in contingency to fund any other need during development
process.
Project Introduction 10 Million Tonnes per Annum coal mine and 900 MW Power Plant
Feasibility Study has completed
The mine will work for 2 different consumption models. Around 5 MTPA coal
will be used by the Power Plant of 900 MWs gross capacity. The remaining coal
will be sold to Government owned GENCOs for their coal conversion efforts and
upcoming IPPs in the country.
Viability GoP has declared Thar Coal fields as Special Economic Zone and Thar Coal Projects
are exempted for 30 years from all taxes and 20% USD based IRR is allowed for the
Projects.
Financial Details According to preliminary estimates, the total investment requirement to develop a 10
Million Tonnes per Annum (MTPA) mine is around US$ 1.5 billion and 900 MW
Power Plant is around US$ 1.7 bn.
Contact Details Mr. Athar Naseem, Director Sino-Sindh Resources (Pvt) Ltd.
Thar Block II Mining & Power Project
Company Profile Sindh Engro Coal Mining Company, a JV between Govt. of Sindh & Engro
Group of Pakistan.
Engro was founded in 1964 as Joint Venture between Esso and Government of
Pakistan to setup a first Urea plant in Pakistan.
Engro is one of the largest group in Pakistan, working in the fields of fertilizer,
chemical, PVC, foods, commodity trade etc
Project Introduction Coal Mining: 6.5 mtpa and Mine Mouth Power Generation: 2 x 600 MW
Bankable Feasibility Study for Coal Mining Project (6.5 mtpa coal mine) has
been completed by internationally renowned Consultants such as RWE-Germany,
SRK-UK, Sinocoal-China in compliance with International Standards.
Total Lignite reserve in Thar Block II - 2 B tons ; Exploitable Reserve - 1.57 B
tons which can support 5,000 MW for 50 years. Additionally, Thar lignite can
also replace imported oil for power generation.
Viability GoP has declared Thar Coal fields as Special Economic Zone and Thar Coal Projects
are exempted
for 30 years from all taxes and 20% USD based IRR is allowed for the Projects.
Financial Details Total Project Cost for Mining and Power Projects is ~ USD 3 Billion & resultant
electricity tariff is competitive with imported coal electricity tariff.
Contact Details Mr. Shamsuddin Shaikh, CEO Sindh Engro Coal Mining Company
Thar Block VI Mining & Power Project
Company Profile Oracle Coalfields incorporated in England and Wales in July 2006, Oracle listed
in the London Stock Exchange on the PLUS Markets, in August 2007. The
company successfully listed on the Alternative Investment Market (AIM) in the
UK, in April 2011.
Project Introduction Bankable Feasibility Study for Coal Mining Project (5 mtpa coal mine) has been
completed by SRK Consulting in compliance with International Standards.
JORC mineral resource of 529 million wet tonnes (Mwt) in a 20 km² area of
the license and 113 Mt JORC proven coal reserve in Phase I
Open-pit coal mine development expected in H1 2013 with initial production
expected H2 2014
JDA signed with KESC for 300 MW Power Plant
Viability GoP has declared Thar Coalfield as Special Economic Zone and Thar Coal Projects
are exempted for 30 years from all taxes and 20% $ based IRR is allowed for the
Projects.
Investment Option The investors can work out modalities of establishing 300 MW Power Plant based on
coal mined by Oracles.
Contact Details Mr. Shahrukh Khan, CEO Oracle Coalfields
Thar Block V UCG Project
Company Profile The Planning Commission, Government of Pakistan has approved this R&D
Project and engaged Pakistan’s renowned scientist Dr. Samar Mubarakmand to
develop a local technology and execute the Pilot Project.
Project Introduction The Project is for production of Syngas from Thar and establishment of UCG
based Power Plant of 100 MW and has following components:-
Creation of New Processing facilities (for handling and purification of coal gas
produced by underground coal gasification)
Creation of New Processing facilities(for production of coal gas by underground
coal gasification)
2X50 MW Power Plant (IGCC)
Test Burn was ignited on 11th December, 2011
Presently, Power Plant of 8-10 MW is being established.
Investment Option • Presently, Power Plant of 8-10 MW is being established, at the cost of PKR 1.8
bn.
• Government of Pakistan has already released PKR 900 for this scheme.
• Investors may collaborate with UCG Project in establishing Power Plant or Coal-
to-Liquid plant.
.