Project Brief: Sindh Engro Coal Mining Company: Engro Corporation Ltd is one of Pakistan's largest conglomerates with stakes in the fertiliser, food, power generation, petrochemicals, automation and terminal storage industries. Since its establishment in 1957 as Esso/Mobil joint venture after the discovery of Mari Gas Field, Engro Corporation has a come a long way in success as well as diversification.
Today, Engro Corporation is not only one of the largest stake-holders of the agri industry in Pakistan but also one of the mainstream companies tackling Pakistan's energy crisis through Engro Power Gen Ltd's investment in the Thar coal mines.
The Thar coal field has total lignite reserves of 175 Billion tons which can be utilised to produce 100,000 MW for over 200 years and could also replace the imported coal currently being used by Cement industry and Brick Kilns. Sindh Engro Coal Mining Company (SECMC) was established in 2009 as a Joint Venture between the Government of Sindh (Gos) and Engro Powergen Limited (EPL) with equity split of 40%:60% between the two partners respectively. It aims to develop a Coal Mining Project in Thar Block II and utilise the large reserves of coal to spurr economic and social development in the region and bring energy security to the country.
Bankable Feasibility Study (BFS) for Thar Block II Coal Mining Project has been completed by internationally renowned Consultants such as RWE-Germany, SRK-UK, Sino Coal China in compliance with International Standards. BFS confirmed that total lignite reserve in Thar Block II are 2 B tons with exploitable reserve of 157 B tons which can support 5,000 MW for 50 years.
Moreover, it has also been confirmed that there are no significant or unmanageable environmental threats and social implications associated with the Coal Mining Project in Thar Block II. Basic infrastructure (roads, water, optic fiber etc) already exist in the Thar coal field area and development of transmission line, canal water supply, effluent disposal system, enhanced road network railway network and air strip is in progress by Government of Sindh (Gos)/Government of Pakistan (GoP). GoP has declared Thar Coal fields as Special Economic Zone and Thar Coal Projects are exempted for 30 years from all taxes and attractive USD based IRR is allowed for the Projects.
SECMC has already finalised firm, cost effective EPC proposals for the Projects with Leading Chinese EPC firm for development of above project. SECMC, in co-ordination with Chinese EPC Contractor & GoS/GoP has already presented Thar Block II Projects to leading Chinese Financial institutions which showed interest in financing the Projects.
The overall aim of the project is to ultimately generate electric power from the lignite resources in Thar. Our aim is to scale up mining operations to 22.8 Mt/a to fuel approximately 4 GW of electric power generation capacity and to meet the lignite production and e coal demand of local industry.
In the first phase, SECMC plans to develop an integrated Coal Mining & Power Project with a capacity of 6.5 Mt/a & 1200 MW respectively. The target for commencement of Project is 2013 & Lignite Production/Power Generation is expected by 2016. With the momentum of work achieved by SECMC and efforts by GoS/GoP to develop necessary infrastructure, one can hope indigenous resource of Thar which is buried under the sand for Millions of years will be untapped which will bring the energy security and prosperity to the country.
Engro Corporation Ltd is one of Pakistan's largest conglomerates with stakes in the fertiliser, food, power generation, petrochemicals, automation and terminal storage industries. Since its establishment in 1957 as Esso/Mobil joint venture after the discovery of Mari Gas Field, Engro Corporation has a come a long way in success as well as diversification. Today, Engro Corporation is not only one of the largest stake-holders of the agri industry in Pakistan but also one of the mainstream companies tackling Pakistan's energy crisis through, Engro Power Gen Ltd's investment in the Thar coal mines.
The Thar coal field has total lignite reserves of 175 Billion tons which can be utilised to produce 100,000 MW for over 200 years and could also replace the imported coal currently being used by Cement industry and Brick Kilns. Sindh Engro Coal Mining Company (SECMC) was established in 2009 as a Joint Venture between the Government of Sindh (Gos) and Engro Powergen Limited (EPL) with equity split of 40%:60% between the two partners respectively. It aims to develop a Coal Mining Project in Thar Block II and utilise the large reserves of coal to spurr economic and social development in the region and bring energy security to the country.
Bankable Feasibility Study (BFS) for Thar Block II Coal Mining Project has been completed by internationally renowned Consultants such as RWE-Germany, SRK-UK, Sino Coal China in compliance with International Standards. BFS confirmed that total lignite reserve in Thar Block II are 2 B tons with exploitable reserve of 1.57 B tons which can support 5,000 MW for 50 years.
Moreover, it has also been confirmed that there are no significant or unmanageable environmental threats and social implications associated with the Coal Mining Project in Thar Block II. Basic infrastructure (roads, water, optic fibre etc) already exist in the Thar coal field area and development of transmission line, canal water supply, effluent disposal system, enhanced road network railway network and air strip is in progress by Government of Sindh (GoS)/Government of Pakistan (GoP). GoP has declared Thar Coal fields as Special Economic Zone and Thar Coal Projects are exempted for 30 years from all taxes and attractive USD based IRR is allowed for the Projects.
SECMC has already finalised firm, cost effective EPC proposals for the Projects with Leading Chinese EPC firm for development of above project. SECMC, in co-ordination with Chinese EPC Contractor &. GoS/GoP has already presented Thar Block II Projects to leading Chinese Financial institutions which showed interest in financing the Projects.
The overall aim of the project is to ultimately generate electric power from the lignite resources in Thar. Our aim is to scale up mining operations to 22.8 Mt/a to fuel approximately 4 GW of electric power generation capacity and to meet the lignite production and e coal demand of local industry.
In the first phase, SECMC plans to develop an integrated Coal Mining & Power Project with a capacity of 6.5 Mt/a '& 1200 MW respectively. The target for commencement of Project is 2013 & Lignite Production/Power Generation is expected by 2016. With the momentum of work achieved by SECMC and efforts by GoS/GoP to develop necessary infrastructure, one can hope indigenous resource of Thar which is buried under the sand for Millions of years will be untapped which will bring the energy security and prosperity to the country.
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