Pakistan rejects $2 billion investment in Thar coal

[Rig Vedic]

Pakistan rejects $2 billion investment in Thar coal

Pakistan rejects Lakshmi Mittal's investment proposal: Report - The Economic Times

ISLAMABAD: Pakistani authorities have turned down a proposal by India-origin steel magnate Lakshmi Mittal's company ArcelorMittal to invest in a coal project in the Thar desert of Sindh province, a media report said today.

The offer by Mittal's company to invest in the Thar coal project was brokered through a consultancy firm in Dubai, a senior unnamed official of the Sindh government told 'The Express Tribune'.

"The reason for rejecting the offer, according to the official, was sensitive relations between the two countries," The Express Tribune's website said.

It further said that "the investment offer was reportedly above $2 billion".

"In the offer, it was said that the coal obtained from Thar would be used by the company ArcelorMittal's steel plants situated in India and other countries," the website added.

The official of the Sindh government, which is associated with the Thar coal project, said the reason why ArcelorMittal had expressed an interest in the venture was low cost of Pakistani coal.

"Indian demand for coal is increasing rapidly and Thar coal can be a cheap source of energy for Indian industries," the official was quoted as saying.

The official further said India had vast experience in the coal sector and this could lead to a "win-win situation" for both countries.

The official contended Pakistan could attract a "lot of investment" from India if it could hold an investment conference in the neighbouring country.

Cross-border investment is one issue that is expected to be addressed as the two sides take steps to normalise trade relations.

 

[Omar1984]

Well yea because it came from India.

India, we don't need anything from you.

 

[Patriot]

It could be used as leverage against Pakistan but i think this is too much bs.Trade should be not effected but we have idiots in our and equally idiotic population who will support such moves.Businessmen don;'t care about countries relation..they only care about the $.

 

[Safriz]

good decision.....after CIA and USA sitting in our country...we cant afford india / RAW controlling our finances.

 

[W.11]

pakistan's owe government should invest in such projects not even china, let alone india

our reserves are for pakistanis not foreign people

 

[Evil Flare]

Bad move by Pakistan i say ..

 

[punisher]

Pakistan rejects $2 billion investment in Thar coal

Pakistan rejects Lakshmi Mittal's investment proposal: Report - The Economic Times

ISLAMABAD: Pakistani authorities have turned down a proposal by India-origin steel magnate Lakshmi Mittal's company ArcelorMittal to invest in a coal project in the Thar desert of Sindh province, a media report said today.

The offer by Mittal's company to invest in the Thar coal project was brokered through a consultancy firm in Dubai, a senior unnamed official of the Sindh government told 'The Express Tribune'.

"The reason for rejecting the offer, according to the official, was sensitive relations between the two countries," The Express Tribune's website said.

It further said that "the investment offer was reportedly above $2 billion".

"In the offer, it was said that the coal obtained from Thar would be used by the company ArcelorMittal's steel plants situated in India and other countries," the website added.

The official of the Sindh government, which is associated with the Thar coal project, said the reason why ArcelorMittal had expressed an interest in the venture was low cost of Pakistani coal.

"Indian demand for coal is increasing rapidly and Thar coal can be a cheap source of energy for Indian industries," the official was quoted as saying.

The official further said India had vast experience in the coal sector and this could lead to a "win-win situation" for both countries.

The official contended Pakistan could attract a "lot of investment" from India if it could hold an investment conference in the neighbouring country.

Cross-border investment is one issue that is expected to be addressed as the two sides take steps to normalise trade relations.

But it can generate lots of job's, and Pakistan can got lot taxes on shipping .....

 

[Omar1984]

Sindh inks energy deals with Chinese companies

Thar project covers coal mining and 4,000 megawatts of power generation with an estimated investment of around $8 billion. PHOTO: FILE


KARACHI: Sindh Coal and Energy Department has been able to attract attention of two large Chinese energy companies – China Three Gorges Corporation and Orient Group, and has signed memoranda of understanding (MoUs) with them in Beijing, says a Sindh government official.

These MoUs were signed during visit of a Sindh investment delegation to China, led by Sindh Assembly speaker.

Wang Shaofeng, Vice Chairman of China Three Gorges Corp and Mohammad Younus Dagha, Secretary Coal and Energy Board signed the MoU on Tuesday. Under the agreement, the Chinese company will participate in international bidding for Thar coalfield’s blocks VIII, IX and X as well as for Sonda coalfield.

The Thar project covers coal mining and 4,000 megawatts of power generation with an estimated investment of around $8 billion.

Apart from participating in future projects in Thar, the company has already purchased a ready project in Sonda coalfield at Thatta, which was earlier developed by CMC of China for coal mining and power generation.

Another MoU was signed on Wednesday by Hongwei Zhang, Chairman of Orient Group and United Energy Group (UEG) and Mohammad Younus Dagha, Secretary Coal and Energy Board.

The MoU covers both coal power and wind energy projects in Sindh. The group has shown interest in developing coal-based power plants in Thar and Badin coalfields.

It has also acquired letter of intent for a 150-megawatt wind power project in the first two years, which the company intends to scale up to 500 megawatts in four years.

UEG has already invested in oilfields of Badin by acquiring British Petroleum’s concessions in the district. The new endeavours of UEG will bring another investment of around $1.2-$2.5 billion.

Published in The Express Tribune, November 17th, 2011


Sindh inks energy deals with Chinese companies – The Express Tribune

 

[anonymus]

Well yea because it came from India.

India, we don't need anything from you.

Arcelor-Mittal is a british company

 

[Hyde]

well if the deal was profitable I find no reason of rejection. See what benefits we could get after the investment is made?

Tax + Employment + cheaper energy + door for other investors to jump in.

Bad decision if it was solely made on considering British Indian's money coming to Pakistan rather than the benefits of this deal

 

[Safriz]

its better to wait for chinese investment than to give it over to .india

 

[WAQAS119]

Pakistan rejects $2 billion investment in Thar coal

Pakistan rejects Lakshmi Mittal's investment proposal: Report - The Economic Times

Just $2 Billion for coal of worth more $ 100 billion? Not enough.

 

[Banana]

Arcelor-Mittal is a british company

Luxembourg Company

 

[WAQAS119]

well if the deal was profitable I find no reason of rejection. See what benefits we could get after the investment is made?
Tax + Employment + cheaper energy + door for other investors to jump in.
Bad decision if it was solely made on considering British Indian's money coming to Pakistan rather than the benefits of this deal

"Coal obtained from Thar would be used by the company ArcelorMittal's steel plants situated in India and other countries," the website added."
Reconsider your post. Strategy is not made keeping just obvious factors in mind but their may be many factors beyond our knowledge.

 

[Hyde]

"Coal obtained from Thar would be used by the company ArcelorMittal's steel plants situated in India and other countries," the website added."
Reconsider your post. Strategy is not made keeping just obvious factors in mind but their may be many factors beyond our knowledge.

Well what they do with the coal is not my concern. We are in no position to curtail India's growing economy anyway. What we must focus is to increase our growth rate which will ultimately lead to decrease in unemployment rate and higher tax collection. By this investment if we can achieve these goals I don't care if the coal is exported to India or any other nation.

PS: India already has abundance of coalfields and its not like they will die if they don't get this project in Pakistan... and if Lakshmi Mittal is interested to invest in Pakistan and if it is in the favour of Pakistan, why not go for it?