sindh coal [read-only] - world...

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HARNESSING OF COAL RESOURCESOF SINDH PROVINCE

December 12, 2003

Sindh Coal Authority(Government of Sindh)

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0.257PUNJAB

175.506BADINTHAR

0.1610.016

JHIMPIR-METTING DISTT. THATTA1.5EAST INDUST DISTT. THATTA

5.512SONDA-JHERRUK DISTT. THATTA1.328LAKHRA DISTT. DADU

COAL DEPOSITS IN SINDH2.

184.123184.658

SINDHTOTAL

0.082NWFP0.196BALUCHISTAN

BILLION TONNESPROVINCE-WISE1.

Coal Deposits of PakistanCoal Deposits of Pakistan

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LakhraKHI 193 km

SondaKHI 150 km

Metting JhimpirKHI 200 km

BadinKHI 192 km

TharKHI 380 km

COALFIELDS IN SINDH - MAPCOALFIELDS IN SINDH - MAP

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Institutional Arrangements to Develop Sindh Coal

Mines & Mineral Development Department, Sindh established on 22.08.2001

Sindh Coal Authority established under the Sindh Coal Authority Act, 1993 governs through a Board headed by Minister for Mines & Mineral Development, Sindh.

Task Force headed by the Prime Minister, Islamic Republic of Pakistan.

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Sindh Coal Authority(An exclusive agency to harness Sindh coal resources)

1. Functions:Exploration of Coal include:

Exploration DevelopmentMining ProcessingUtilization Research and Development.Coordination of Infrastructure Development

Conduct problem oriented research. Development of indigenous technology.Promotion of foreign investment.

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2. Objective:Exploitation of indigenous coal, which will lead to:

Self-relianceContain shifting of people from rural to urban centres.Poverty alleviationSustainable power generation programmeContain de-forestation Gasification, liquefaction, briquetting, pulverization of coal.

3. Strategy:Geological investigations and studiesInfrastructure developmentPromote private investmentAppropriate coordinationAssist the investors.

Sindh Coal Authority(An exclusive agency to harness Sindh coal resources)

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Lakhra coal-field: Highlights

1. Distance from Karachi 193 km.2. Area 1309 sq. km. 3. Coal Reserves 1.328 Bn. Tonnes.4. Chemical Analysis of Coal:

Moisture (AR) 28.9%Ash (AR) 18.0%Volatile Matter (AR) 27.9%Fixed Carbon (AR) 25.2%Sulphur (AR) 4.7% to 7.0%Heating Value (Av.) 4,622-7,554 Btu./Lb.

5. Exploration & Evaluation of North Lakhra Coalfield has been sponsored with an estimated cost of Rs.38.516 million. The study is at the stage of award.

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Thatta-Sonda-Jherruck coal-field: Highlights

1. Distance from Karachi. 150 km (approx.)

2. Identified area 1206 sq. km.

3. Shallowest Coal Bed 37.8 m.

4. Deepest Coal Bed 265.28 m.

5. Coal Reserves (Billion Tonnes) 7.112

6. Chemical Analysis

Moisture (AR) 31.23-34.72%Volatile Matter 27.9%Fixed Carbon 25.2%Ash (AR) 7.69-14.7%Sulphur (AR) 1.38-2.82%Heating Value (AR) Btu./Lb. 6,780 - 11,029

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Indus East Coalfield - Highlights

23.9%Fixed Carbon (AR)11.27.7%Volatile Matter (AR)10.

2.40 meters

2.6%

33.1%Moisture (AR)9.Thickest coal bed8.

6,300 to 8,000 Btu.Calorific Value (AR)7.Sulphur (AR)6.

15.2%Ash (AR)5.Lignite-B to Sub Bit.-BCoal Rank4.1.5 billion tonnesCoal reserves3.16 Drill Hole2.616 sq. km.Explored area 1.

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Highlights of Thar Coalfield

1. Thar Desert area (approx.) 22,000 Sq. km. 2. Coal-field area 9,100 sq. km. 3. Total Drill Holes 217 4. Coal Deposit 175.506 bn. tonnes. 5. Coal Reserves (Billion Tonnes):

Coal Quality Lignite A-BMoisture (AR) 46.77%Ash (AR) 6.24%Volatile Matter (AR) 23.42%Fixed Carbon (AR) 16.66%Sulphur (AR) 1.16%Heating Value (Av.) 5,774 Btu./Lb.

6. Thar Coal Analysis

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Investigated Blocks at Thar

Shenhua Block

Area = 50 sq.km.C

B

A

D

Investigated Blocks and Shenhua Group/RE Blocks at Thar coal-field

Rheinbraun Block

Area = 20 sq.km.

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Thar Coal-field (Investigated Blocks)Block-wise deposits

175,5062179,000Total165,791508,643.5Rest of coalfield

9,715167356.5Sub-total

2,5994280Block-IV

2,0064199.5Block-III

1,5844355Block-II

3,56641122Block-I

Reserves(Million Tonnes)

Drill HolesArea (sq. km.)

Block

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Thar Coal Findings – Chinese Report

5.30 upwards Stripping Ratio

4.

All the coals are the self combustion typesSelf combustion trial of coal

3.

Each coal bed possess explosive natural dust explosion.

Coal dust2.

Analysis not reveal availability of Methane gas.

Gas 1.

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228 samples from 28 drill holes. Benzene Extract5.

278 samples from 33 drill holes. Humic acid4.

193 samples from drill holesUranium3.357 samples from 32 drill holes. Gallium (Ga)2.338 samples from 32 drill holes. Germanium (Ge)1.

Other useful mineral and raw elements in Thar

The calorific value is 11.10-17.64 MJ/Kg averagely 13.22 MJ/Kg belonging to low-medium calorific value, easily grinded, poor thermal stability, strong reactivity to CO2, strong clunker, rich Tar and high humic acid. Other uses: gasification,liquefaction, power generation, and humic acid extraction.

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Lignite - Products

Electricity 860 kWhBriquettes 400 kgPulverized lignite 360 kgFluidized-bed lignite 380 kgCoke 250 kgSubstitute natural gas 190 m3

Fuels 160 lSynthesis gas 580 m3

1,000 kg

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Lignite Producing Countries in Europe

25Romania26Bulgaria37FR Yugoslavia51Czech Republic60Poland64Turkey 64Greece

168Germany

Production (In Million Tonnes)

Country

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Share of Lignite in Power Generation -2000

26%Germany28%Turkey30%Romania34%Slovenia34%Poland40%Bulgaria56%Bosnia-Herzegovina66%FR Yugoslavia 66%Czech Republic 69%Greece78%Macedonia

Power GenerationCountry

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COAL IN ELECTRICITY GENERATION

USA 52%UK 58%Australia 77%Germany 52.5%China 78%India 77%S. Africa 88%Poland 96%Czech Rep. 72%Greece 67%Denmark 47%Netherlands 28%World Average 39%

Source: World Coal Institute, London, December, 2002.Share of coal in Electric Power Generation in Pakistan is less than 1%.

Projects identified

For Development of Sindh Coal Resources

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Thar Coal Project - Main Features:

Development of an integrated coal mine and minemouth power plant.

Initial capacity of power plant = 2 x 300 MW

Project will be executed on BOT basis

50 sq. km. area delineated for the geological investigation

Detailed Coal Geological Investigation (DCGI) within six months by Shenhua Group Corporation.

Feasibility Study of Thar coal for 2 x 300 MW coalfired power station by Shenhua Group Corporation.

Shenhua Group Corporation of China

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Shenhua Group has completed a Geologic Report under DCGI and submitted to Govt. of Sindh, which is positive.

As a result of meeting of the President of Pakistan during his recent visit to China with Shenhua Group, they deputed a team of 170 members for conducting the hydrological survey.

20 members advance arrived on 11.12.2003 for hydro geological study remaining team of 150 members are expected in last week of December. They are in the field.

Hydrological studies would be conducted over an area of 650 sq. km. under a contract – provided by them.

Shenhua Group Corporation of China (Latest Progress)

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A consortium of Middle East Link Pty. Ltd. and PICT Energy of Australia will undertake underground coal gasification and power generation project at Thar.

An MOU in this regard has been signed on 26.09.2002 at Karachi.

The company will undertake the feasibility study within a period of 15 months, which has been lapsed.

The sponsors have requested for extension of the MOU, which is under consideration.

Underground Coal Gasification Project at Thar

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Use of coal by Cement Industry

Cement industry in Pakistan is in process of converting their fuel system to coal, because, it is cost effective.

Conversion of entire cement industry would require around 2.5 million tonnes of coal annually.

Coal requirements of cement industry have been reached more than 1.0 million tonnes.

At present, annual coal production of Sindh is around 2.0 million tonnes, which could be enhanced very conveniently.

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Presently, in Sindh, coal is being mined from Lakhra-Metting coalfield. Lakhra coal has high content sulphur and ash.

For cement use low ash, low sulphur coal is pre-requisite.

GOS has signed MoU with Shahzad International of Lahore for establishment of Coal Washing Plant at Lakhra.

The pre-feasibility study report submission period has been lapsed. The sponsors have requested for extension.

Continued

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Bankable Feasibility Study of Thar Coal Mining (BFS)

Terms of ReferencePreparation of Thar coal mining feasibility study to provide details to the potential investors to plan further for projects based on coal utilization.

Design, conduct, manage and interpret in exploration programme to a level of confidence for a bankable feasibility study for about a 1000 MW minemouth power station. Coal reserves for a minimum period of 30 years. Determine the most economic, efficient and reliable technology to operate the coal mine. Determine the minemouth cost per tone of Thar coal at a price lower or equal to prevailing international pit mouth price of lignite.Conduct all geo-technical studies, hydro geological & environmental impact analysis.

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Study awarded to M/s. Rheinbraun Engineering of Germany at a cost of Euro 2.930 million in February, 2003, is to be completed within 18 months.

Steering Committee headed by the Minister for Mineral Development, Sindh is monitoring the scheme. The study inception report has been submitted, which presents the design and specification of the exploration programme and the power plant, lignite pre-drying and water treatment plant, shows up the scope of work for the next period and gives the yearly lignite demand and the implementation schedule. The report concludes that water & lignite are available.

Drilling has been completed.

RE has also submitted interim report.

Continued - BFS

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The mine area outlined and located in block-I shows up about 520 million tons of lignite, which is quite sufficient to feed 1000 MW power plant for more than 50 years. The coal overburden 1:6 striping ratio.

RE suggests to operate with closed cooling circle process with covered coolers to minimize the water losses for the power plant operation.

Two water sources are available in the Thar desert area:

First the drying and recondensation/recovery of water from the raw lignite.

Second the water withdrawn from the different aquifers for a dry mine operation.

Continued - BFS

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Most of water for operation of 1000 MW will be derived from the lignite with the drying process.

The data, calculations and considerations give a clear picture that the 1000 MW power plant and the mine can be operated in the Thar desert area without any problem.

A delegation headed by the Minister for Mines & Mineral Development, Sindh visited Germany for demonstration of the technology for converting the excessive moisture from coal as a source of water for power plant by lignite drying technology already being experimented by the RWE Rheinbraun.

Continued - BFS

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WTA-Technology for TharRWE Power • has developed the WTA-Technology• continues to develop the WTA-

technology• will license the WTA-technology

=> Extraction of water from Thar lignite is feasible and viable

WTA= Method for drying lignite in fluidized bed with utilization of Thar vapour energy.

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Why Lignite Drying?

• Extract water for other utilisation• Nearly doubling calorific value• Raise efficiency of power stations

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• Energetically very efficient• Quasi-emission free drying• Largely self-sufficient in terms of steam• High safety standard (inert atmosphere)• High drying capacity (continuous process)• Release of the evaporated water as an

almost solids-free condensate

Benefits of WTA Technology

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Highlights of RWE – PresentationEstablished in 1898 – activities in power generationTurnover of 46 Bill. € per year (2002) worldwideAbout 13100 employees (2002) worldwide.

Key figures FY 2002 (rounded)*

Continental power generation based on lignite and hard coal, nuclear energy, gas, hydropower, wind, photovoltaics and biomass, lignite upgrading and production of energy resources, i.e. lignite and hard coal, mineral oil and gas

Sales € mill. 7,300

Operating result € mill. 1,330

Workforce FTE 20,000

Power generation TWh 190

Capacity MW 33,000

Business fields

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Visits to Coal Mines

Inden Coal Mines:The geological formations are more or less similar to Thar coalfield.

Annual production is 6 million tonnes of coal.

Lignite is used in power generation plants.

In comparison the coal is deeper than the Thar coal.

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Hambach Coal MinesOne of the biggest lignite mines operated by RWE since 1984.Annual production is 40 million tonnes of lignite Coal utilized at NeiderauBem plant (3900 MW); Neurath (2250 MW) and Frimmersdorf (2400 MW). Coal is being transported by railway system. Overburden 240 million tonnes

Stripping ratio – 6:1 (m3t)Depth 350 metersBucket Wheel Excavators –installed

Dewatering aspectDewatering before mining. Annual quantity of some 600 m3

of groundwater.Keeping safe from water inflow. Stabilise the slopes of mines.

Continued

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Self-reliance Reliable & less expensive fuelGeneration of massive economic activity.Direct and indirect employment and business avenues.A sustainable power generation programmePoverty alleviationMassive saving in foreign exchangeContain shifting of population from rural to urban areas.

Benefits of indigenous fuel/coal

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An amount of Rs.1.040 million has been released. Scheme is executed by Local Govt. Deptt. (Town Planning).

2.0802.352Town Planning at Islamkot

3.

Similar studies conducted by Chinese & German. This assessment will be based on the reports from them.

50.00070.000 Assessment of Water Resources of Thar Coalfield

2.

First phase has been completed. Second phase is in progress.

0.700198.000Bankable Feasibility Study of Thar Coal Mining (80:20)

1.

ProgressAllocation

2003-04

Cost (Rs.)

(Million)

Scheme/ProjectS. No.

Sindh Coal Authority(Development Programme 2003-04)

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Continued

This scheme to be funded by Federal Govt. PC-I being prepared by Works & Services Department as Executing Agency.

The scheme has been approved. Works & Services Department as Executing Agency. Administrative Approval issued.



SCA in consultation with Civil Aviation Authority has invited the Technical & Financial proposals through press. After evaluation of the proposals, the Technical Committee has submitted its report. A Steering Committee is being constituted for selection/award of the contract.

1.000130.000Improvement of road from Hyderabad to Kantio (185 kms.)

8.

45.000153.994Construction of road from Rohiro to Mithi (21.5 kms.)

7.

10.000144.553Construction of road from Modhar to Rohiro (21 kms.)

6.

45.000145.508Construction of road from Wango to Modhar (21 kms.)

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5.656120.000Construction of Airstrip at Islamkot (including feasibility study)

4.

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PC-I has been forwarded to Federal Government (M/O Finance) seeking their financial support as announced by the President of Pakistan during the presentation on 16.05.2003. A. A. has been issued.

20.000105.610Rehabilitation of Road from Naukot to Padrio (22.5 km.)

12.


20.000157.467Rehabilitation of Padrio to Mithi Road (25.74 km.)

11.



1.000149.999Improvement of road from Chachro to Islamkot (56.32 km)

10.

1.00096.709Improvement of road from Kantio to Chachro (30 km)

9.

Continued

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25.000140.041Up gradation of Mithi-Islamkot Road (40.23 km) New Scheme

13.

The scheme has been approved by PDWP and is reflected in ADP 2003-04. The PC-I has been forwarded to Federal Government (M/O Finance) for financial support. A. A,. issued.

100.00095.868Construction of road from Islamkot to Nagarparkar with link to Gurah

14.


1.000139.779Construction of road from Islamkot-Gurah road to Sanghario (20 km.)

15.

PC-I is being prepared by Works & Services Department.The scheme is not approved.

36.0036.00Construction of Bye-Pass for Naukot and Mithi (New Scheme)

16.

Continued

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PC-I is being prepared by L.G. Department.

13.0013.00 (un-appr.)

Water Supply Line from Naukot to Islamkot up-gradation.

21.

PC-I/PC-II is being prepared by Works & Services Department. The scheme is not approved.

25.00 (FFP)

50.000(Unappr.)

Construction of new road from Islamkot to Airport Road (New Scheme)

18.

The PDWP approved the scheme in principle on 31.03.2003.

15.17915.179Construction of Bye-Pass for Jhudo (New Scheme)

17.

Approval to award of the study to M/s. Northeast Coal Geological Bureau, China has been pursued. An amount of Rs.15.557 released on 30.10.203.

31.11438.516Exploration & Assessment of Coal Resources of Northern Lakhra Coalfield

22.

The scheme has been approved and is under tender process.

130.00113.675Pipeline water supply scheme Islamkot to Coal mines (Thario Halepota)

20.

The scheme is executed by Local Govt. through D.G. (Tech.) LGD Hyderabad. Work in progress.

158.212188.212Pipeline water supply scheme Mithi to Islamkot

19.

Continued

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