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KARACHI: The Thar Coal Energy Board in its 25th meeting held under the chairmanship of Sindh Chief Minister Syed Murad Ali Shah approved a levelized tariff of $37.36 per ton for the financial close stage petition for 7.8 million tons per annum of Block-I and a levelized tariff of $30.40 per ton for Contract stage petition for 11.2 million tons per annum of Block-II.

The meeting was held at CM House and was attended by Federal Planning Minister Ahsan Iqbal (through video link), Sindh Energy Minister Imtiaz Sheikh, Sindh Minister for Mines & Mineral Shabbir Bijarani, Sindh Minister for Education Sardar Shah, Advisor Law Murtaza Wahab, Secretary Energy Abubakr Madani, MD Thar Coal Energy Board Khadim Hussain Channa and other officers concerned.

Energy Minister Imtiaz Shaikh, while briefing the meeting regarding the progress of SECMC and SSRL mines operating in Thar Coalfields, said that the mines were currently producing 15.4 million tons of coal per annum and were being primed to scale up to 19 million tons per annum over the next eighteen months if the Board approves the proposal. The board; however, approved the proposal.

The coal being produced from the mines is powering 2640-MW of electricity, energizing more than seven million households from Thar Coalfields. Moreover, power generated from the Thar Coalfields also has one of the lowest costs of power generation in the country.

It may also be noted here that power generated from Thar Coalfields is considerably cheaper than power generated from imported coal, whereas also providing greater energy security, and saving precious foreign exchange reserves for the country.

During the meeting, the management of Thar Coal Energy Board also briefed the Board regarding the Financial Close stage petition for extraction of 7.8 million tons per annum for Block-I of Thar Coalfields, as well as, the Contract stage petition for extraction of 11.2 million tons per annum for Block-II of Thar Coalfields. During the presentation, it was highlighted that as the mines continue to scale up, the overall cost of production continues to decline largely due to the mines attaining economies of scale. As mines extract greater economies of scale, the coal tariff is expected to reduce further, resulting in a reduction in electricity generation tariff from mine-mouth power plants located on Thar Coalfields.

The Board approved a levelized tariff of US$ 37.36 per ton for the Financial Close stage petition for 7.8 million tons per annum of Block-I of Thar Coalfields which is operated by Shanghai Electric, and a levelized tariff of $ 30.40 per ton for Contract stage petition for 11.2 million tons per annum of Block-II of Thar Coal Fields, which is operated by Sindh Engro Coal Mining Company.


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Tariq Qurashi Jul 26, 2023 01:23pm
We have huge coal reserves, that I suppose have to be used, although the rest of the world is moving towards renewable energy. Coal is one of the worst polluters, so any power generation or industry that uses coal must have the proper scrubbers and pollution control technology installed, and this should be a requirement for any new projects.
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Az_Iz Jul 26, 2023 05:59pm
Other countries including wealthy industrialized countries have and many still continue to generate large amounts of electricity from coal. Pakistan should do the same. Thar coal is generating the cheapest electricity, creating jobs, providing energy security and saving foreign exchange. All these are significant advantages.
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