Thar coal mining project in Pakistan | Updates & Discussions.

Discussion in 'Economy & Development' started by Aeronaut, Nov 10, 2009.

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  1. Fulcrum15
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    Maybe it is coal excavated rather tan coal reserves currently held.
  2. Omar1984
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    Thar coal power project top priority, says Ibad

    KARACHI: Sindh Governor Dr Ishratul Ibad on Thursday said that Thar coal power project was top priority of the government as its commissioning would help making the country self-sufficient in its energy requirement and subsequently turn it into a stable economy.

    “The provincial government has approached the federal government seeking approval of the installation of the power transmission lines network from Thar coal field to the national grid at a cost of Rs21 billion,” said Dr Ibad, while presiding over a meeting held at the Governor`s House to review progress on the Thar coal power project.

    The power transmission lines network would be completed in two phases by June 2014, he added.At an initial stage, the project would start producing around 2,400 megawatts within three years. It was expected that the project would start generating 25,000 MWs by the year 2029, he said.

    Earlier, Sindh Coal and Energy Development Secretary Mohammad Yunus Dagha briefed participants in the meeting about the progress on the project.

    He said that there were 186 billion tonnes of coal reserves in Sindh alone and 175 billion tonnes of them were discovered in Thar which is said to have the seventh largest reserves of coal in the world.

    Giving details of the reserves discovered in other provinces, Mr Dagha said that there were 235 million tonnes of coal reserves in Punjab, 217 million tonnes in Balochistan, 90 million tonnes in Khyber-Pakhtunkhwa and in nine million tonnes in Azad Kashmir.

    Infrastructure

    About progress on the development of infrastructure in the project area, the participants were informed that a road network was being led at the project site at a cost of Rs9.6 billion which would be completed by December 2012. While work on a rescue station and three reverse osmosis plants had already been completed, effluent disposal system and the Thar Airport would be established soon.

    He added that work on a water project to clean the left bank outfall drain (LBOD) and laid its line up to the Thar coal was also under way at a cost of Rs3.5 billion.

    Recalling the incentives being given to investors in the Thar coal project area, he said that the government had declared Thar Coal Field as a special economic zone where profit rate was 20 per cent on dollars. He said the import of the machinery and other equipment required for coal mining as well as vehicles for the use on the site were exempt from customs duty.

    Besides, he said, withholding tax, excise duty and other levies would not be collected for a period of 30 years.



    Thar coal power project top priority, says Ibad | Sci-tech | DAWN.COM
  3. Omar1984
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    Call to start work on Thar coal for energy


    Khaksar Tehreek Quaid Dr Sahiha Al-Masharaqi has said that the government should start work on Dr Samar Mumbarakmand’s project of power generation from coal resources of Thar on a priority basis to overcome energy crisis.

    Addressing a protest rally at Ichhra here on Sunday, she said that through power generation by the coal, the country’s industry which was closed due to non-availability of gas and electricity would become operative again and create job opportunities for the unemployed people. She appealed to the Supreme Court to trial Gen (Retd) Pervez Musharraf on the charges of killing innocent citizen, violating the constitution and handing over hundreds of citizens to the US to earn dollars. She said Musharraf should be hanged on these counts.

    Sahiba further stated that those who were not implementing the Supreme Court’s decisions were committing contempt of court. She said 15 percent people occupied the country’s resources and soon people would snatch their rights from the ruling elite.


    Call to start work on Thar coal for energy
  4. Omar1984
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    Underground coal gasification off to promising start in Thar

    [​IMG]
    The complex network of pipelines is in fact the work of Pakistani scientists and engineers who are working on the Underground Coal Gasification project. PHOTO: FILE


    KARACHI: The red and blue interconnected pipeline network, with a state of the art infrastructure right in the heart of desert is not what one expects to see in the Thar desert. At first sight, it gives the impression that some multinational corporation is drilling oil in the sands of Thar.

    But this complex network of pipelines is in fact the work of Pakistani scientists and engineers who are working on the Underground Coal Gasification project, designed to generate cheap electricity. After the successful experiment of extracting gas in December 2011, the beaming team of scientists is confident that it will successfully produce 100 megawatts of electricity through a pilot project by the end of 2013.

    The project had been subjected to considerable scepticism, with many suggesting that the country simply did not have the expertise to run such a complex project. Others argued that Pakistani coal may not be suited for gasification. The scientific team at Thar, however, believes they have proven their critics wrong. In December 2011, they successfully light the first chimney using the coal, an achievement that took about a year’s worth of effort.

    Muhammad Shabbir, the head of the team in Thar, said that the project is running on the right track and will be able to produce 100 MW of electricity in the desired period.

    Shabbir, a nuclear scientist by training, says his team can produce over 2 billion cubic feet of gas by replicating its current model. That amount is equal to the current shortfall of gas in Pakistan. “If we get $1.1 billion in funds, we can end the present gas shortage in the country,” said Shabbir.

    His team is working on Block V in Thar, a 64-square kilometre area that is estimated to have about 1.4 billion tons in coal reserves. Shabbir estimates that his team can use those reserves to generate about 10,000 megawatts of electricity for about 30 years.

    The team claims that their costs will be some of the cheapest in the world because the underground coal gasification process does not require the coal to be mined. Meanwhile, the advent of a team of nuclear scientists working on solving the country’s energy crisis appears to have been good for the neighbourhood. The project team has set up a water pump that can supply up to 600 litres of water per minute to the neighbouring villages, saving them the trouble of giving to look for water for their own consumption and for their crops and animals.

    “We have lived in this land for centuries without any change in our living habits. Now that we have drinkable water at this site, we may not leave this place for years,” said an old man, whose home was around 50 metres away from the site.

    The availability of water, as well as doctors, has begun to make the project site something of a magnet for people in the region.

    “We welcome these outsiders since they have never interfered in their lives. Instead, they have helped them a lot because many have got jobs and most importantly water – the source of life in the vast Thar desert.”

    Published in The Express Tribune, January 17th, 2012


    Underground coal gasification off to promising start in Thar – The Express Tribune

    ---------- Post added at 10:17 PM ---------- Previous post was at 10:15 PM ----------

    Consortium claims $10b interest in Thar coal

    [​IMG]
    Representatives of the TharPak Consortium met with government officials at the Pakistani Embassy in Washington DC on January 5 to introduce their consortium and announce their intention to explore and invest in the coalfields in Thar. PHOTO: FILE

    ISLAMABAD:
    A group of firms based in the United States claims to have formed a consortium that will look to raise up to $10 billion to invest in coal mining, electricity generation, and fertiliser manufacturing in the Thar desert in Sindh.

    Representatives of the TharPak Consortium met with government officials at the Pakistani Embassy in Washington DC on January 5 to introduce their consortium and announce their intention to explore and invest in the coalfields in Thar.

    The consortium’s plans for Thar sound ambitious. TharPak wants to set up a “mega energy complex” in Sindh that would mine about 100 million tons of coal per day to feed a Direct Coal-to-Liquids plant that could replace up to 80,000 barrels per day of oil imports.

    In addition, the complex would include power generation capacity of up to 6,000 megawatts as well as a fertiliser manufacturing facility that would have an as yet unspecified capacity to produce urea. The consortium claims that these industrial processes will be supported by a carbon capture and storage program, and a liquefied carbon dioxide production and transportation system for sale to enhanced oil recovery projects.

    “With Pakistan’s energy deficit in mind, we believe that with the combination of our deep mining and engineering expertise and the use of commercially proven clean coal combustion technologies, TharPak will deliver a solution to what is holding Pakistan back from competing on a level playing field in the global economy; dependable, abundant and affordable energy,” said Steve Carpenter, business development director for the consortium. TharPak officials seem aware of the scale of their proposal. “When fully built out, the cumulative capital investment for the lignite mining operations alone will likely exceed $10 billion,” said Hans Naumann, TharPak’s chief engineer.

    Addressing some of the scepticism about the willingness of foreign investors to put up that much money in Pakistan, an official close to the development of the consortium – who asked not to be identified – said that TharPak had the credentials to make the investment.

    Published in The Express Tribune, January 15th, 2012


    Consortium claims $10b interest in Thar coal – The Express Tribune
  5. Omar1984
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    Expats offer support to Thar Coal project

    KARACHI: The overseas Pakistanis have offered their financial assistance of $115 million for the underground coal gasification project to produce 100 megawatts electricity in the country.

    Dr Mirza Ikhtiar Baig, Federal Advisor on Textile addressing a conference on ‘We need crisis or growth’ said the project was facing financial constraints. The financial support was conveyed to Dr Samar Mubarikmand, who informed Dr Baig that since it was a government financed project by the federal government and as such they cannot accept cash funds from overseas Pakistanis but requested to arrange machinery and equipments. staff report


    Daily Times - Leading News Resource of Pakistan
  6. Tauhaa
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    ""KARACHI: Sindh Governor Dr Ishratul Ibad on Thursday said that Thar coal power project was top priority of the government -----""


    Priority !! ?? -------- The Chinese company working for the thar coal project has backed off due to lack of interest by Government ----- another local company (Engro) in a similar venture is in no different situation.

    Even the developed countries like USA and China are producing more than 50% of their electricity requirement thru coal boilers instead of diesel or gas--- whereas despite the gross electricity deficit and circular debt due to payments of oil / diesel ---- and the availability of sufficient indigenous reserves of coal we are not producing a single unit thru coal boilers !! What a pity !!
  7. ziaulislam
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    ziaulislam SENIOR MEMBER

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    problem is the govt
    1.is not ready to invest a single passa
    2. its not ready to give grantees due to electricity stealing
    3.its not ready to put the transmission lines
  8. Omar1984
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    Thar Coal – Energy security for Pakistan

    [​IMG]
    The Thar Lignite Coal resources are equivalent to around 50 billion tons of oil, which is more than the combined oil resources of Saudi Arabia and Iran. PHOTO: FILE



    Discovered accidentally in the year 1989, during an exploration project of defunct SAZDA (Sindh Arid Zone Development Authority) to find drinkable water in the desert, Thar Coal has remained a matter of active national debate. The size and the quality of Thar Coal reserves were known to a great extent since 1993 after a study by John T Boyd Company, US Mining consultants, only to be reinforced in subsequent studies by other international experts. However, there have always been conflicting views which at times create confusion about technical viability and commercial feasibility of mining and power generation on Thar Coal.

    Thar Lignite Coal resource was initially estimated to be around 135 billion tons which was subsequently enhanced to 175 billion tons after review of data by USGS (United States Geological Survey) and GSP (Geological Survey of Pakistan). This estimate was based on distanced bore holes over an area of 9,000 sq kms which meant a source estimate of around 194 million tons of lignite per sq km. Subsequent explorations carried over an area of 1,200 sq have provided even higher figures of proven reserves of being around 200 to 350 million tons of lignite per sq km.

    According to the standard conversion rates, the Thar Lignite Coal resources are equivalent to around 50 billion tons of oil, which is more than the combined oil resources of Saudi Arabia and Iran. In terms of gas reserves, these are around 68 times the present resources of natural gas in Pakistan.

    Shenhua – an opportunity missed

    In 2002 China sent a team of 136 coal mining engineers, geologists, hydro-geologists and power plant specialists with M/s Shenhua Group, to open up Thar coal resources for commercial use. The company established a field camp in the desert and worked on Thar Coalfield for a period of two years. In 2004, they prepared a comprehensive feasibility report which found the Thar lignite resource suitable for commercial mining and proposed open cast mining with mine-mouth power generation of 600 MW in the first phase to be scaled upto 3,000 MWs based on the lignite reserves in Block II, with an area of 55 sq kms (0.6% of Thar coalfield area of 9,000 sq kms).

    Shenhua Group asked for a tariff of 5.6 US cents per KWH for the electricity generated by its proposed power project. They asked for just a transmission line to be provided by the government. At that time we were buying electricity from IPPs at 6.5 US cents per KWH. However, Wapda insisted on a tariff of 5.3 US cents per KWH and negotiations broke down. A subsequent feasibility report by Germany’s RWE Company funded by the Federal and Sindh Governments proved that the real commercial cost for power generation in first power project on Thar Coal, as per European standards could be upto 7.6 US cents per KWH.

    The revival in 2008

    In May 2008, the Government of Sindh through the Mines and Mineral Development Department (the predecessor of Coal and Energy Department) offered a joint venture, a public private partnership, to the private sector with a 60:40 (Private : GOS) equity participation and management control with the private partner. A joint venture company with the name of Sindh Engro Coal Mining Company was formed and it started working on the work left unfinished by the Chinese in Block II.

    The writer is Secretary Coal and Energy Development Department, Government of Sindh.

    Published in The Express Tribune, January 30th, 2012


    Thar Coal
  9. VCheng
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    ^^^ So this effort is in addition to the Coal Gasification Project being spearheaded by Dr. Mand, I assume?
  10. ziaulislam
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    ziaulislam SENIOR MEMBER

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    Thar coal project okayed by UK firm Oracle Coalfields

    KARACHI:

    UK-based Oracle Coalfields has said that the results of its feasibility study on the Thar Coalfields has underlined its “technical and economic viability”.

    According to the report, the required total capital expenditure for open-cast development is estimated at $610 million, which includes $224 million for mining equipment. This initial investment will allow the company to produce five million tons of lignite coal per year.

    However, starting in 2013, initial plans limit mining to around a million tons a year – the coal from which will be sold to Lucky Cement for use in heating in its kilns. Every wet ton of coal will cost $42.21, and the mine will have an operating life of 23 years.

    According to the feasibility study, there are reserves of 529 million wet tons of coal in the mining area, estimated by the guidelines in the Joint Ore Reserves Committee Code. Every wet kilogramme has a gross calorific value of 3,182 kilo calories, with ash content at 5.89 per cent and sulphur at 0.91 per cent. By these specifications, the coal has been qualified as suitable for power generation.

    “This is another important step for Oracle as we look to provide a sustainable source of energy to Pakistan and bring its first large scale open-pit coal mine into production. The feasibility study indicates technical and economic viability of the mining project. We are undertaking further work to refine overall project economics, specifically in respect of off-take agreements with respect to power plant and mining contractor opportunities, prior to making any definitive announcements,” said chief executive of Oracle Coalfields Shahrukh Khan.

    The company is currently working on a bankable feasibility study as it seeks funding required for project. Citigroup Global Markets has been brought on board to find a “comprehensive funding solution” for the project.

    Published in The Express Tribune, February 7th, 2012.
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  11. Omar1984
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    Chinese, British firms to invest in Thar coal project

    [​IMG]

    KARACHI - The 14th meeting of Thar Coal and Energy Board was held at Chief Minister House on Saturday under the chairmanship of Sindh Chief Minister Syed Qaim Ali Shah.

    The meeting was also attended by Syed Naveed Qamar, Federal Minister for Water & Power, Syed Murad Ali Shah, Sindh Minister for Finance, M Zubair Motiwala, Chairman Sindh Board of Investment, Imtiaz Hussain Qazi, Secretary Water & Power, Raja Muhammad Abbas, Chief Secretary Sindh, MNA Mrs Rubina Saadat Qaimkhani, Mohammad Younus Dagha, Secretary Coal and Energy Development Department, GoS/Managing Director Thar Coal and Energy Board, Secretary to CM Sindh Agha Jan Akhtar and others.
    Chief Minister Sindh welcomed the participants of the meeting and said the government is fully committed to the development of Thar coal project which has the potential of turning the country’s economy around. Thar coal resources, he said, can be used for power generation, chemical production and other uses and has the potential of providing energy security to the country. He added that basic infrastructure and facilities are being ensured at the project site.

    Mohammad Younus Dagha, Secretary Coal and Energy Development Department, briefed the forum that Government of Sindh is financing and executing development of infrastructure projects like roads, water supply, waste water disposal, airport and Reverse Osmosis Plants for potable water for local people and project developers on fast track basis. He also informed that for laying of transmission line from Thar to Matiari, NTDC has completed the PC-I at the cost of Rs 20b with detailed technical designs and submitted it to the Planning Commission. “Federal Government is urged to arrange funding for this critical project either from PSDP or from international lenders like Asian Development Bank, China Development Bank or Japan International Cooperation Agency,” he said.

    Syed Naveed Qamar assured the forum that the project of transmission line will be expedited. Imtiaz Qazi gave update on the project financing through Pak-China Joint Energy Working Group and informed that the next meeting will be held in March. The Working Group is likely to finalize financial assistance for Thar Block II Coal Mining & Power Project of Sindh Engro Coal Mining Company during its upcoming meeting.

    Zubair Motiwala briefed the Board about the process of third International Competitive Bidding and said that four companies China Three Gorges Corporation, Thar Coal & Power Consortia, Tae Ryun Co Ltd and Australasian Continental Energy Pvt Ltd had submitted proposals for coal mining & power generation projects in Thar. Besides these companies, a US-based consortium Thar Pak also submitted proposal to develop coal-based projects in Thar. He further briefed the forum about proposed projects of all companies and their technical/financial strength. On the recommendations of the Evaluation Committee, the Thar Coal and Energy Board approved the allocation of Block IV of Thar Coalfield to China Three Gorges Corporation, which will develop open pit mine of 20 million tons per year and mine mouth power plant of 3000MW in two phases. In the first phase by 2016, they will develop open pit mine of 10 million tons per year and power plant of 1500MW.

    Shahrukh Khan, Chief Executive Officer of Oracle Coalfields, UK presented its detailed Feasibility Study for Coal Mining and Power Generation Project at Block VI of Thar Coalfield. Oracle Coalfields, UK is investing $610 million for a coal mine of 5 million ton per year capacity. Oracle has also signed a MoU with KESC to develop initially a 300MW mine-mouth power plant with plan to develop up to 1100 MW at the Block VI site. Initial coal production is expected in 2014. The Board appreciated the work of Oracle Coalfields and assured them of government’s support.


    Chinese, British firms to invest in Thar coal project | The Nation
  12. AZADPAKISTAN2009
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    Just 23 years? I thought it was good for 500 years ? This british company is crap get rid of them and bring local companies

    The UK company is just trying to Under value the coal reserves , so it can get a 100 year contract to gain profits form coal mine

    If its just 100 million to mine this thing get Local Company to do it
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  13. ziaulislam
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    ziaulislam SENIOR MEMBER

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    ^^^^
    they are talking about the respective block.
    each block covers an area of about 0.5% of total mine area having 30-40 years of coal.


    govt should stop wasting time on negotiation and allow them to invest regardless of priceBECAUSE NO MATTER WHAT PRICE THEY SHOW, IT WILL STILL BE 3 TIMES CHEAPER THAN OIL,and 2 times cheaper than imported gas..
  14. Highway_Cop
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  15. Omar1984
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    UK firm to invest $610m in Thar coal

    KARACHI: The UK firm Oracle Coalfields is set to invest $610 million to develop an open pit coal mine in Thar, according to its CEO Shah Rukh Khan. The project is expected to produce five million tons of coal, which will fuel a planned 300 megawatt (MW) power plant for the Karachi Electric Supply Company (KESC), he said. He was addressing a press conference along with the secretary of the Sindh Board of Investment and the Coal and Energy Development Department, Mohammad Younus Dagha, on Monday.

    Khan said that the equity portion of financing for the project is ready, while the debts will be financed from outside. A lot of lenders had shown keen interest and were amenable to loaning money for the project because the KESC, which will buy all output from the mine, is a trustworthy company, he added. Referring to a feasibility study Oracle recently concluded, Khan remarked that the report had underlined the technical and economical viability of the project itself as well.

    He said that Oracle had signed a memorandum of understanding with the KESC to develop a 300 MW mine-mouth power plant at the site. Khan said that the company was also undertaking a comprehensive environment and social impact assessment in compliance with both local and international regulatory requirements.

    Speaking on the occasion, Dagha said that the mine has been leased for 30 years, extendable for more if needed. Responding to a question, he said that the first project cycle for the installation of a transmission line between Thar and Matiari has been completed and will cost Rs20 billion. To another question, he said that electricity from coal will cost 10 to 11 cents per unit, compared to oil-fired power plants that produce at 22 to 25 cents per unit.

    Khan expects initial development work to be initiated by late 2012 and the mine to be in production by 2014.

    UK firm to invest $610m in Thar coal Pakistan Business
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