THARPARKAR: Phase-III expansion of the Thar Block-II coal mine in Sindh’s Tharparkar district was inaugurated on Monday, increasing its annual production capacity from 7.6 million tonnes to 11.2 million tonnes and further enhancing the use of indigenous coal resources for affordable power generation.
Pakistan Peoples Party Chairman Bilawal Bhutto-Zardari inaugurated the expansion as well as the country’s first-ever coal drying unit, at a ceremony held at Thar Coal Block-II.
Sindh Engro Coal Mining Company (SECMC) began commercial operations in Thar Block-II in 2019 with an annual mining capacity of 3.8 million tonnes (MTPA).
READ MORE: Thar Block II: SECMC prepares for Phase III expansion
The second phase, which was completed in 2022, increased the capacity to 7.6 MTPA. With the third phase, annual production will increase by another 3.6 million tonnes, marking the mine’s third expansion in seven years.
He also felicitated SECMC on its achievement, saying the Thar mine is now ranked among the top four percent of mines globally.
Addressing a large gathering at Thar Coal Block-II, Sindh chief minister Syed Murad Ali Shah paid tribute to the people of Thar, workers, engineers and all stakeholders who contributed to transforming the project into a reality.
He thanked Bilawal Bhutto-Zardari for visiting Thar and continuing to support projects that have reshaped the economic future of the region.
The chief minister described the occasion as a historic continuation of a journey that started in 1996 when Shaheed Mohtarma Benazir Bhutto laid the foundation stone of a 2,640-megawatt coal-based power project in Thar.
He noted the significance of the moment, recalling that the foundation stone was laid during the tenure of former Sindh chief minister Syed Abdullah Shah, father of the incumbent chief minister. Today, the inauguration was being performed by Benazir Bhutto’s son, Bilawal Bhutto Zardari, with Murad Ali Shah serving as chief minister of Sindh.
“This project represents the fulfilment of a vision passed from one generation to another,” he said. “Benazir Bhutto dreamed of solving Pakistan’s energy crisis while uplifting the people of Thar. Today, that vision is becoming a reality.”
Murad Shah said the project suffered years of neglect after the dismissal of Benazir Bhutto’s government, delaying benefits that could have significantly strengthened Pakistan’s energy sector.
He added that when the PPP returned to power in 2008, President Asif Ali Zardari revived the project and pushed forward its implementation despite numerous challenges.
The chief minister recalled that there were times when the project faced uncertainty and lacked support at the federal level. However, through determination and a partnership between the government of Sindh and private investors, the project moved forward.
He said former President Asif Ali Zardari and then Prime Minister Nawaz Sharif jointly encouraged the development of the project during a critical phase in 2014.
“We always said that if Thar changes, Pakistan will change. Today we can proudly say that we have delivered on that promise,” he remarked.
Speaking at a ceremony marking the occasion, SECMC Chief Executive Officer Amir Iqbal said, “Thar’s story is a journey from the impossible to excellence, achieved through vision, collaboration and resilience.”
He said Thar was contributing not only to Pakistan’s energy security but also to the country’s economic growth.
“Thar stands as a testament to the power of public-private partnership and proof that we can achieve what once seemed impossible. As we continue to energize Pakistan, our ambition is to build SECMC into a world-class, sustainable mining company.”
Phase-III expansion
Officials briefing the ceremony said the Phase-III expansion would increase mine capacity from 7.6 MTPA to 11.2 MTPA, adding 3.6 million tonnes annually.
The expansion has been completed through 100 percent self-financing, reflecting investor confidence in the project.
The additional coal production will fuel Lucky Electric Power Company’s 660-megawatt power plant, raising total electricity generation supported by Thar Block-II coal from 1,320 MW to 1,980 MW, enough to supply electricity to approximately 4.5 million households daily.
Project officials said the mine-mouth power generation cost stood at approximately $3.75 per MMBtu, making it one of the cheapest energy sources available in the country and nearly three times cheaper than imported coal.
The expansion is expected to save around Rs15 billion annually in power generation costs and approximately $220 million in foreign exchange each year, while cumulative foreign exchange savings since operations began have already exceeded $1.7 billion.
Copyright Business Recorder, 2026