Sindh Engro Coal Mining Company

Development of Water Resources at Thar

21st November 2017

2

1. Thar Coal Mining and Power Projects

2. Thar Foundation & Community Development Initiatives at Thar

3. Water Resources at Thar and Projects

4. Way forward

Agenda

THAR LIGNITE COAL MINING & POWER

Engro, in partnership with Government of Sind, has commenced Thar coal

mining project – Sindh Engro Coal Mining Company Ltd. (SECMC)

SECMC is developing a 3.8 Mt/a Mine while Engro Powergen Thar Limited

is setting up 2x330 MW IPPs Mine Mouth IPP with Target COD in June

2019

At a combined project cost of USD 3 Billion, this is the largest private

investment under CPEC

Achieved 50% project completion milestone 4 months ahead of schedule

Expansion Project of Mine to 7.6 Mt/a and two additional 330 MW IPPs

by TEL and TNPTL expected to achieve Financial Close by Q1 2018

Plans finalized to expand the mine to 22 Mt/a and enhance power

generation from Block II to 3960 MW over the next 5 years

Key highlights of Thar Coal

Total Reserves 175 Bn Tons

TOE 50 Bn

More than Saudi Arabia & Iranian Oil Reserves

68 times higher than Pakistan’s total gas reserves

Entire Thar Coal Reserves can be used to generate

100,000 MW of electricity for over 200 years

Total lignite reserves in Block II = 2 Billion Ton= 540

Million Tons Crude Oil = 20 TCF Gas

Thar Coal Power/Mining Project

BRINGING INDIGENOUS FUEL TO THE POWER GENERATION FUEL MIX TO MEET THE POWER SHORTFALL IN PAKISTAN3

Promise of Thar

With expansion of the Mine, Thar will be the source of the cheapest Thermal Power in Pakistan4

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50U

SD/M

MB

TU

No. of Years from Start of Physical Work

Coal Price Forecast

Imported Coal at Port - Oct 2017 Thar Coal

CERA Imported Coal Price Forecast – Port

3.8 mtpa

7.6 mtpa

11.4 mtpa

19.0 mtpa

13.3 mtpa

Thar Foundation

5

Thar Foundation

Health EducationSkill Development & Livelihood Support

Infrastructure and Water Resource

DevelopmentCultural Preservation Disaster Management

Thar Foundation will partner with specialist organizations to undertake activities in each intervention area providing them with administrative and financial support

Our Vision

“Thar Foundation has been established by companies engaged in Thar coal projects together with the GoS for the betterment of the principal stakeholders of Thar Coal i.e. the people of Tharparkar though graduated and sustainable interventions in the fields of education, healthcare, livelihood, infrastructure and water resource development, cultural preservation and disaster

management”

Community Development Initiatives at Thar

6

• Construction of 250 bed Indus Hospital at Islamkot - Phase I consisting of 100 bed to be ready in 2018

• Marvi Mother and Child Clinic catering to over 2000 patients per month free of cost

• Medical camps and vaccination drives for various conditions

• Construction of 1000 student TCF Schools in each Taluka of Tharparkar

• Construction of primary schools in Block II and adjoining areas

• Take over of all government schools in Islamkot Taluka

• Over 1000 locals trained in project related skills such as dumper driving, scaffolding, masonry, steel fixing etc.

• Women Dumper driver initiative launched to provide equal opportunities for women

• Thar Trainee Engineers and Thar Associate Engineers launched for local youth

• Resettlement of ThariyoHalepoto and Senhri Dars in model villages with all amenities including healthcare, schools, transport system

• Cultural aspects and neighbour structures preserved

• Restoration and preservation of Naukot Fort

• Promotion of local arts and artisans

• Launch of Thar Coffee Table Book

Hydrology of Thar

7

80AMSL

0 AMSL

-50 AMSL

-115 AMSL

Dune Sand Aquifer (50 m)

Coal Seam Roof Aquifer

(120 m)

Coal Seam Floor Aquifer

(180 m)

There are three underground reservoirs present at Thar. To

ensure safe mining operations, the groundwater level has to

be lowered through continuous dewatering

An estimated volume of 30 Mm3/a has to be extracted

during the lifetime of the Mine

This Underground Water is mostly Saline, with Salinity

ranges between 4000-6500 TDS, however it contains no

heavy metals/ industrial constituents

Ground Water Projects in Thar Block II

8

SECMC and Thar Foundation realize that water is the most precious resource

at Thar

To utilize the abundant water present underground for the benefit of local

populace, Thar Foundation in collaboration with SECMC is working on

different projects such as:

Setting up Reverse Osmosis Plants for the provision of clean drinking

water to locals - 3 plants have been set up to-date serving 8000

people per day

Biosaline Agriculture pilot projects being carried out in collaboration

with renowned local and foreign universities

Establishment of Fish Hatchery for saline tolerant species in

collaboration with Fisheries Department - GoS

Bio Saline Agriculture Projects – Xingjian University, China

9

Tripartite Agreement signed between, SECMC, Xingjian University & Tando

Jam University for shared research in the field of Bio Saline Agriculture

02 Hector Land allocated to Xinjiang University-China to develop cash crops,

cereals, food & medicinal crops. Potential Crops are;

Oats

Date Palms

Water Melons

Ginseng

Maize

Poacease for Bio-Fuel

Successful completion of this project will contribute towards capacity building

in

Development of cash crops / Bio-fuels

High Focus – High Return Medicinal Plants

Bio Saline Agriculture Projects – Karachi University

10

Bilateral Agreement signed with Karachi University for research in growth of

food and fodder using saline water

Fodder specie (Panicum) is a perennial grass with excellent salt excluder

properties and has energy equivalent to “Maize”

Successful fodder growth on Saline water has been achieved at pilot plot of 02

acres , testing on local cattle is in progress

Growth Cycle is 25-30 Days in Summer while 35-40 Days in winter post

harvest

Bio Saline Agriculture Projects – Locals

11

Thar Foundation initiated a pilot project with an aim to grow vegetables &

cash crops on saline water using community past knowledge & wisdom of the

area

Vegetables successfully cultivated and harvested in the area are:

Pea

Carrot

Cotton

Sun Flower

Corn

Total area allocated for the project is 120 Acre

Locals are organizing the complete farming process starting from cultivation

till harvesting

Pilot Fisheries Project

12

Development of “Fish Hatchery” in the saline water reservoir of Gorano / Green Park based on research (Saline Tolerant

species)

Gibelion Catla Locally know as Thailli

Labeo Rohita Local known as Kurro

Cirrhinus Mirgala Locally known as Morakhi

Tilapia locally known as Dayya

Project initiated in collaboration with Fisheries Dept. (GoS) & aims at alternate income source through Fish Farming for

local community

Tilapia

Gibelion Catla

Labeo Rohita

Cirrhinus Mirgala

Way Forward

13

The objective of these pilot projects is to provide locals with sustainable livelihood opportunities while making droughts irrelevant in the region

Our Long Term Aim is to

Ensure fodder availability across the year & stop cattle migration during dry season

Provide access to/ Setup Solar wells to local community to establish biosaline farms

Educate local community in farming methods and suitable crops

Market Development / Access for local community (Meat & Fodder)

“As I’m seeing it now, it may cause kind of a reverse cycle; previously the people of Tharparkar migrated to other areas due to droughts, but

[with such biosaline projects in hand] people from other areas may need to migrate to Tharparkar for economic purposes”

Prof. Dr. Mujeeb Sehrai

Vice Chancellor, Sindh Agricultural Univerity, Tando Jam