Thar coal mining project in Pakistan | Updates & Discussions.

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

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  1. Aether
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    Aether PDF THINK TANK: ANALYST

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    oh well thats not a latest news........... Coal was discovered decades ago...... Gold reserves were there from at least 4 decades and other resources that has been mentioned were also discovered ages ago

    All we need is the good infrastructure......... none of the governments ever invested to utilize these resources...... every leader says "WE WILL" invest in thar deserts to utilize coal but a part from routine surveys no progress has ever been done......
  2. Absar
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    Absar FULL MEMBER

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    I believe if we really get honest in utilizing the mineral resources in Pakistan, we would never be in the need to get dependent or relying on countries like US or organizations like World Bank for emergency loans or emergency aids. Our country is so rich in mineral resources. But unfortunately we don't utilize those resources :(

    For instance, read this report. Though it's of last year, but worth reading:

    Thar coal turning into another Kalabagh Dam

    ISLAMABAD: Another controversy like the Kalabagh Dam is in the making as mistrust between the federal government and Sindh grows with every passing day on the development of Thar coal, the greatest national wealth and energy resource worth US$6 trillion.

    At a time when the Federal Ministry of Petroleum and Natural Resources is seeking expression of interest from international companies for the development of a test-pit of 1/2km x 1/2km for preparation of a bankable feasibility document for coalmine development, based on the Thar Coalfield Block-II, the Sindh government finds it as a federal government's move to take over the provincial resources.

    The petroleum ministry requested for expression of interest on June 3 through advertisements in national newspapers but Sindh authorities decided to resist this move. Sources in the petroleum ministry strongly deny that the federal government has any intention to take over the provincial resources, insisting that Islamabad is helping the province to develop the Thar coal as the province could not do it because of financial constraints.

    Referring to the Question-Hour in the National Assembly on Wednesday, a senior Sindh government official told this correspondent that the minister in-charge for Petroleum and Natural Resources, while admitting that the coal resources belonged to the province, kept on pressing that the Thar Coal Mining Company was functioning with the consent of Sindh. "This is contrary to what the Government of Sindh had been telling the petroleum ministry," the official said.

    The Ministry of Petroleum and Natural Resources had issued a National Mineral Policy in 1995 in which the mineral resources had been termed as a provincial subject. The idea of the Thar Coal Company by the federal government was conceived in 2007, in which Sindh government was 20% partner as compared to 80% of the federal government. The fact, however, remains that the company never got acceptance in the province. The Arbab government kept on opposing it and no work could be done on ground due to opposition by the provincial government.

    The present Sindh government also actively opposed what Sindh believes attempts to take over the control of the Thar coal resources by the federal government in the name of the Thar Coal Mining Company (TCMC). In a meeting of the federal cabinet last month, the federal ministers belonging to Sindh also opposed this "federal takeover" and were able to unanimously decide that the Sindh government would be handling the development of coalmines by inviting investors while the federal ministries would not interfere, the source said, adding that the proposal by the Planning Commission to form the Pakistan Coal Board was rejected too.

    "The decision by the prime minister in the cabinet meeting not to interfere in this provincial subject went well and the Government of Sindh started actively working on Thar project," the Sindh government source said, adding, "Advertisements appeared last month, calling for proposals from international mining companies but all of a sudden the Petroleum ministry came up with its own advertisement."

    "It would create a new row between the province and the federation," the source said, warning that the people of Pakistan might see another energy dream being frustrated due to mishandling by bureaucracy.

    The Sindh authorities shift all the blame on the federal government for the non-development of the Thar Coalfield. Last time, it is argued, it was Wapda and Nepra that had scared away the Shenhua Group of China. The government of Sindh and the Chinese company, sources said, spent two years and billions of rupees and were ready to start work when the Chinese were turned back on the issue of tariff.

    Federal government sources, however, insist that Islamabad is only assisting Sindh to develop the Thar Coalfield, which could not be developed in the past on account of the financial constraints faced by the provincial government. A petroleum ministry official said that out of 9,000 square kilometers of Thar coal reserves, hardly six blocks, each of 50 square kilometers, had been developed for coal production. This was done by the Geological Survey of Pakistan, a federal entity.

    In 2002 a bankable feasibility of Thar coal mining was conducted by Rehien Brauan Engineering of Germany at the cost of Rs 198 million, financed by the federal government. However, this feasibility report was sold to an American company by the Sindh Coal Authority for US$50,000 instead of developing the mines. "We are only helping them out and have no intention to take over the deposits," a source said, adding that all the federal government entities were working in the provinces for their benefit.

    Reference: Thar coal turning into another Kalabagh Dam
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  3. pak-marine
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    pak-marine SENIOR MEMBER

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    Old news ! GOP and the estabilisment has been sitting on it since ages with a kashkol in their hands asking for more bheek , they have been imagining to use this coal in their seekh kabab party
  4. Absar
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    Absar FULL MEMBER

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    Another not-very-old report on DAWN

    THE public-private partnership inked by the Sindh government to exploit Thar’s coal resources for power generation could be a watershed event in Pakistan’s painful history of power-sector woes. Poor planning over the decades has meant that whenever the country has experienced a spurt in economic growth, the power sector’s deficiencies have invariably crimped that growth. To forestall another boom-and-bust cycle now is the time to plan for the future, and Thar’s coal could hold the key to energy security in the years and decades ahead.


    It is by no means a sure bet; a feasibility study will be concluded in early 2011 and depending on a positive result, the first megawatt of power from the project will flow somewhere in early 2016, if all goes according to plan. There are several technical hurdles to overcome. Thar’s coal is believed to be high in moisture content, which makes it unsuitable for transport or easy use in power generation. Then there is the issue of acquiring adequate water to run a power plant, and overcoming the inter- and intra-provincial water disputes that will inevitably ensue. And finally, any new power plant in Thar will have to be connected to the national grid at great cost and effort.


    Perhaps more than the technical problems though, politics and funding hang heavy on the Thar power project. For one, disputes between the centre and Sindh over who has the ultimate say on Thar’s coal and its use for power generation could yet scuttle the project. Additionally, there is the question about how exactly power projects in Thar will be financed. Domestic banks are wary of additional exposure to the power sector given its recent troubles, while Pakistan’s poor standing in the international financial market could render the project prohibitively expensive to finance. Clearly, we must do more to put our overall economy in order to make credit cheaper. And from an environmental and local point of view, it must be ensured that clean-coal technology is employed and that the people of the area benefit directly and fairly from the exploitation of Thar’s coal resources.

    Reference: DAWN.COM | Pakistan | Thar coal
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  5. Horus
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    Horus ADMINISTRATOR

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    With due respect sir you have not even botherd Looking at the Dates of the Articles , please have a Glance , this is the Final feasibility report which has come up with ammounts of kept resources and their cost.

    Regards::cheers:
  6. Horus
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    Horus ADMINISTRATOR

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    Members In Addition to the Topic Please dicsuss our Massive Iron resource as well which is considered not worthwile of making steel out of it.
  7. Insane
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    Insane FULL MEMBER

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    That is Gr8 News for Pakistan. Wait a min.. That is a Gigantic News....

    This Will put Pakistan at No.2 in Coal Reserves behind only USA and above Russia... Congratualtions :tup:
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  8. ajpirzada
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    i have seen the official report on this subject. this coal is enough to last us for 200 yrs to fulfil our energy needs. there is a plan of doin gasification of these coal reserves, instead of mining it, and then using the gas for electricity generation etc. reason being there is water for i dont know how many feet on top of these coal reserves and mining will create and environmental mess. wat world bank suggested was use the dredgers to dig through the sand but lik i mentioned it will create a mess and so gov is not really considerin it.

    another things. there are coal reserves under khewra salt mines as well.
    Last edited: Nov 11, 2009
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  9. FlyingEagle
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    FlyingEagle FULL MEMBER

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    Allah Alimighty has alot of blessings on Pakistan. We lack good leadership. We can say "Pakistan: A rich country without a leadership.":pakistan:
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  10. Horus
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    Horus ADMINISTRATOR

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    Yes Indeed and still more exploration is going on in 3 more districts as i said earlier.

    May Allah help us and let not our IDIOTIC rulers waste this Huge resource:lol:
  11. Absar
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    Absar FULL MEMBER

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    Thanks, friend. But sadly Pakistan is awfully stuck in Provincialism thing. I wish we get out of this Provincialism factor so that the projects like Kalabagh Dam and Thar Coal fare in a smooth and beneficial way :pakistan:
  12. Seadog1
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    Have you ever considered the difficulty of starting a major company in Pakistan and why it is seldom done...

    Israel is normally has more Hi Tech start up investments then India and China combined, though India and China has overtaken Israel.

    All the warnings about the threat to Israeli high-tech from China and India were apparently not crying wolf: A report released over the weekend by the research department of Dow Jones VentureSource says the two giant emerging economies combined have now passed Israel in the amount of venture capital invested in high-tech startups in the first quarter of 2008.

    The two Asian nations together also had the same number of such deals in the quarter as Israel, according to Dow Jones. Some $818 million was invested in Chinese and Indian startups combined, compared to only $572 million in Israeli firms.

    The number of deals for the quarter was 55 for Israel, totaling the same as India, with 16, and China, 39, together.
    Advertisement

    The U.S. still leads by far in all parameters concerning high-tech venture capital investments: $6.835 billion and 603 deals in the first quarter of the year.

    European numbers were $1.53 billion and 180 deals. While it is easier to start a business in Pakistan then India for example,,,its extrmely difficult to do business.

    What is of great consequence is the relative ranking on another score – enforcement of contracts. For this indicator, Pakistan has the worse score among the ten used by the bank for the purpose of evaluation. Contract enforcement has three elements – number of procedures that have to be followed, the time it takes to enforce a contract, and the cost of enforcement. The three are assigned the same weight in the rating for this indicator.

    In Pakistan’s case, 47 procedures have to be followed for the enforcement of contracts compared to 21 in the case of Singapore that has the top ranking in terms of ease of doing business. In Pakistan it takes an average of 976 days to reach a settlement on a contract dispute compared to 150 in Singapore. The cost of settlement of a contract in Pakistan is 23.8 per cent of the total value, a bit lower than Singapore’s 25.8 per cent.The cost of doing business -DAWN - Business; February 23, 2009

    Then you have to add the cost and diffculty of doing business in Pakistan with foreign investors, stories about kidnappings, demands for ransom, and killing of some hostages pose serious issues in their decisions to bring capital to Pakistan.

    Security concerns must also weigh heavily with domestic investors particularly in troubled areas in Balochistan and the North-West Frontier Province"
  13. Absar
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    Absar FULL MEMBER

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    A
    n average of 976 days to reach a settlement if compare to 150 days of Singapore -- it's a huge difference.

    It's a nice article to learn the stats and other useful and collective data. It's relevant to the topic but not relevant to my post per se.

    I was talking about something else, Provincialism that is. Every Province, by and large, accuses other province of embezzlement day to day and keep on creating brouhaha inside the nation. The same is the case with Thar Coal and Kala Bagh Dam too. One should understand that these resources and projects benefit the people of the nation, and not a single province. No province has the right to seize any such mineral resource and lay claim in order to utilize the resources for its province alone. It belongs to federal; it belongs to the people of Pakistan, not only people of any particular province. And last but not the least, every province should be treated fairly in every regards -- with Justice.
  14. Aether
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    Aether PDF THINK TANK: ANALYST

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    I have seen those coal reserves under Khewra Salt mines but they are not even 0.5% of the total reserves of Pakistan..... 95%+ are only in Thar and remaining spread in Punjab and other provinces

    If i am not wrong there were 175 billion tons of Coal reserves in Thar and 10 billion tons of coal reserves in other parts of Pakistan including Khewra coal reserves
  15. Wingman
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    Pakistan Coal reserves enough for 200 years