Thar Block II: Phase III to raise mine output to 11.2mn tonnes a year, says CM Murad

The Thar coal mine will increase annual production by 3.6 million tonnes to 11.2 million tonnes after the completion of Phase III of the Thar Coal Block II project, Sindh Chief Minister Murad Ali Shah said on Monday.

The Sindh government on Monday inaugurated Phase III of the project in Tharparkar, read a statement.

Thar coal is an indigenous lignite coal reserve located in Sindh, Pakistan, which is playing a crucial role in fulfilling the country’s power needs and aims to reduce reliance on imported fuels. It boasts an estimated 175 billion tonnes of lignite coal, making it one of the largest coal deposits globally.

The expansion will raise mine production capacity by 3.6 million tonnes a year, from 7.6 million tonnes a year to 11.2 million tonnes, Shah said, adding that the project was being completed through 100% self-financing.

The cost of power at the mine-mouth plant is expected to fall to $3.75 per million British thermal units (MMBtu) after Phase III, Shah said, adding that electricity generated from domestic coal would be about three times cheaper than power based on imported coal.

Phase III will enable Lucky Electric Power Company’s 660-megawatt plant to operate on Thar coal, taking total power generation from Thar to 1,980 MW, said the CM.

The expansion is expected to save about Rs15 billion, i.e. $54 million, annually in power generation costs and around $220 million in foreign exchange each year, he said.

The Thar project has already saved more than $1.7 billion in foreign exchange, according to Shah.

The government is also considering using Thar coal to produce urea and syngas for industrial and fuel use through coal gasification, Shah said, as Pakistan seeks to reduce its reliance on imported fuel.

“Use of local coal will further increase with Thar Phase III,” Shah said, adding that a proposed Thar Rail project would help make the coal accessible across the country.