SECMC set to increase coal production from Thar by 47% from Sept 2026
- Increase in coal production to enable mining firm to expand supply of lignite to Lucky Electric Power Company Limited in Karachi
SECMC is boosting Thar coal production by 47% to 11.2 million tons annually by September 2026, aiming to replace imported coal, save foreign exchange, and reduce electricity costs in Pakistan.
- Increased Thar coal production targets.
- Significant foreign exchange and electricity cost savings.
- Future expansion and export potential.
Sindh Engro Coal Mining Company (SECMC) is set to increase coal production in Thar by 47% to 11.2 million tonnes per annum from September 2026, as it has made a cumulative investment of $1.4 billion in the project since 2019.
“The SECMC is producing 7.6 million tonnes per annum at present, which will increase to 11.2 million tonnes per annum from September 2026,” Amir Iqbal, CEO, SECMC said while briefing media to announce a conference titled ‘Mining Technical Conference 2026’ scheduled to take place on Thursday, August 6, 2026.
“Additional investment will be made in the next phases of expansion of coal production from Thar block-II,” he said.
“The increase in coal production will enable the mining firm to increase supply of the lignite to Lucky Electric Power Company Limited (LEPCL) in Karachi, fulfilling its 100% requirement for 3.6 million tonnes per annum from September 2026,” he said.
The increased supply of coal would help Lucky’s power plant to completely shift from imported coal to local coal from the next month, saving the country’s precious foreign exchange reserves which were being spent on import of lignite from Indonesia at present, Iqbal said.
Despite inclusion of transportation cost from coal mine to power plants in Karachi, the Thar coal would cost 8-10% cheaper to power companies running on the lignite compared to imported coal, he claimed.
“The production of coal from Thar block-II by SECMC has saved $1.7 billion by cutting energy import since 2019.”
He said the coal output would further increase to 20 million tonnes per annum in Phase-IV which is targeted to be started by 2030.
The increased production of coal from Thar in future can further cut the production cost and enable the country to export it to other countries. At present, the coal stands cheaper for local usage compared to the imported coal, according to Iqbal.
He further said the Thar–Chhor railway line for coal transportation would be completed in the early part of next year. “Once completed, Thar coal will be transported by train to power plants.”
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