KARACHI: Sindh Engro Coal Mining Company (SECMC) has signed an agreement with Lucky Electric Power Company Limited (LEPCL) to supply 3.6 million tonnes of coal per annum to the latter from its open pit coal mine in Thar Block II. LEPCL is a public unlisted company incorporated in 2014.
On behalf of SECMC, the agreement was signed by SECMC's Chief Operating Officer Syed Abul Fazal Rizvi, and CEO of Lucky Electric, Intesar Ul Haqqi was the other signatory, SECMC statement here on Saturday,
The coal will be supplied to LEPCL as part of Phase III of mine expansion by SECMC. Previously, SECMC had also signed coal supply agreements with Engro Powergen Thar Limited, Thar Energy Limited and Thal Nova Power Limited for cumulative supply of 7.6 million tonnes per annum which will generate 1320 MW power.
The first electron to be produced from Thar coal is expected by December 2018. SECMC's Block II mine at its optimum capacity will be the cheapest source of base load energy in Pakistan, producing 30 million tonnes per annum at dollars 32 per tonne.
It is approximately 6 US cents per kWh. The LEPCL project involves development, construction and operation of a super-critical coal fired power plant with a capacity of 660 MW.
The power plant will consist of a one coal-fired generating unit with a maximum gross capacity of approximately 660 MW. The entire equity has been injected by Lucky Cement Limited through its fully owned subsidiary LCL Holdings Limited.
The LEPCL project site is spread over 250 acres in Port Qasim, Karachi. For the first time, Thari coal will be transported from Thar to a power plant based outside of Thar by trucks.
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