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Russians keen on investing in Thar coal

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MOSCOW - Pakistan and Russia Wednesday agreed to promote and enhance the bilateral relations in diverse fields including trade and energy. The Russian investors have shown keen interest to invest in Thar coal energy project and Pakistan Steel Mills.

Addressing a joint press conference along with her Russian counterpart, Foreign Minister Hina Rabbani Khar said there has been a scope for cooperation between the two countries in different areas and all the aspects for improving cooperation have been discussed during the meeting of two foreign ministers. Khar is on four-day visit to Russia at the invitation of her Russian counterpart Sergey Viktorovich Lavrov.

She held in-depth talks with Lavrov on expanding and diversifying Pakistan-Russia relations. The two foreign ministers exchanged views on regional and global issues of mutual interests, besides increasing cooperation in energy, infrastructure development, agriculture, science and technology. Replying to a question on Afghanistan, Khar said Pakistan has a clear policy on that and it would extend full help and cooperation to any Afghan-led, Afghan-owned and Afghan-driven peace initiative as it is the only long lasting solution to the problem.

She said Pakistan has repeatedly said there should be political solution to Afghan problem for durable peace in the region. The foreign minister said TAPI and KASA 1000 energy projects were also discussed during the meeting. She said Pakistan also got very encouraging response from Russia for more investment in the most important project of Pakistan Steel Mills.

She said both countries also agreed to enhance parliamentary interaction, besides increasing cooperation at the level of foreign ministries of two countries. Khar said it has also been agreed that there would be more interaction between the chambers of commerce and industries of two countries to improve trade activities. She said the Russian investors have also shown interest to invest in different energy projects like Thar coal. Regarding cooperation in energy sector, she said: “We are looking forward for the energy group to be meeting within the first half of this year”.

Talking about the regional level of cooperation, Khar said Shanghai Cooperation Organisation (SCO), is exceptionally important forum within the region to face and counter the regional challenges.

She said Pakistan has been actively participating in the deliberations of SCO and seeking its permanent membership and thanked the Russian Federation for extending its support on the issue.

The foreign minister said next quadrilateral summit to be held in Pakistan was also discussed during the meeting with her Russian counterpart and added “Pakistan is looking forward to host this summit”. She said she has extended invitation to the Russian leadership on behalf of President Asif Ali Zardari for this quadrilateral summit.

She said the visit of President Zardari and Prime Minister Yousuf Raza Gilani to Russia and their meetings with the Russian leaders have also improved the bilateral ties and it also indicated that Pakistan gives importance to its relations with Russia. Addressing the press conference, Russian Foreign Minister Lavrov said both the countries also agreed to cooperate in fighting terrorism and drug crimes.

He said: “We have a good future in implementation of major transnational energy projects at the border between the Central Asian and South Asian regions.”

He said: “In our international cooperation we pay special attention to the issues of terrorism and drug crimes.”

He said soon, federal service representative of Russia on control of drug substances will start working in Islamabad.

On the issue of promotion of trade relations, Lavrov said the Pakistani side received Russia’s draft of a joint action plan in trade and investments.

“We discussed cooperation in the framework of the SCO, the Dushanbe quartet and the UN Security Council, as Pakistan is the Security Council’s permanent member for 2012-2013,” Lavrov said.

He said: “We share approaches to major international problems, principles, on the basis of which it is necessary to settle emerging problems.”


Russians keen on investing in Thar coal | The Nation
 
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russians really want to invest and increase their presence in pakistan but govt is idiot..end of story
 
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Punjab backs Sindh on Thar coal project

Karachi As the Sindh government was reportedly facing problems in getting approval and funds from the Centre for some of the vital infrastructure projects to make Thar attractive for investors to utilize coal reserves, the Punjab government has also joined Sindh to stress on the federal institutions to make “every possible effort” in completing the vital national project, it was learnt by The News on Sunday.

Sindh complained that the federal government’s concerned institutions were not “cooperating” in initiating infrastructure projects specially pertaining to power and water supply in Thar.

The development of roads was taken up by the provincial government out of its own resources, and the ministry of railways was shouldering the responsibility of railway lines, said the chief minister of Sindh at the 19th meeting of the Council of Common Interests (CCI) held in Islamabad recently.

Syed Qaim Ali Shah informed the council that the responsibility of laying of transmission lines for power evacuation and arrangement for water supply rested with the federal government. He said that the Sindh government had been facing hardships in arranging funds for these projects from the planning and development division and the economic affairs division, according to minutes of the meeting of the CCI obtained by The News.

Shah also said that the investors had been waiting for completion of infrastructure, and China had also shown interest in providing soft loans. The chief minister of Punjab fully supported the chief minister of Sindh and emphasized on the importance of the Thar coal project. The secretary of economic affairs division said that a JICA mission had visited the site of the Thar coal project recently, and a breakthrough in this connection was on the cards.

Punjab backs Sindh on Thar coal project
 
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Local, foreign companies keen to invest billions in Thar coal project​


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ISLAMABAD: The initiatives to generate electricity from reservoirs of Thar Coal are bearing fruits as some local as well as foreign companies have shown their interest to invest billions of rupees in the mega project.

According to details regarding status of projects at Thar Coalfield, a mining company of China has shown its intention to invest US$ 1.5 billion in key infrastructure projects including mining of 5 MTPA and 900 MW - Phase-I GMC in Block-I.

In Block-II - Sindh Engro Coal Mining Company, (joint venture : 40% Sindh government and 60% Engro with two 600 Power Plant) plans to invest for Open Pit Mining.

In Block-III-A - Cougar Energy (United Kingdom) plans to invest for 400 MW Under Ground Coal Gasification Project while in Block-IV - Gorges Corp of China plans to invest for mining and to generate 1500 MW.

Similarly, in Block-V - UCG Project, Under Ground Coal Gasification Project two plants of 50 MW IGCC are planned. In Block-VI - Oracle Coalfields, PLC (UK), would invest for strip mining and in this regard it signed an MoU with Karachi Electricity Supply Corporation (KESC) for 300 MW.

An official source told APP on Thursday that PC-I for Thar-Matiari-Rahim Yar Khan Transmission has been submitted to the Planning Commission for its placement in its upcoming CDWP meeting.

He said Thar Coal and Energy Board is pursuing to develop infrastructure like laying of a transmission line, water supply schemes, laying of rail lines, construction of roads, development of coal field etc. for early completion of Thar Coal project.

The official said some incentives, concessions and protection for development of indigenous resources have also been announced which are: zero percent customs duties on import of coal mining equipment and machinery including vehicles for site use, exemption on withholding tax to shareholders on dividend for initial 30 years, exemption on withholding tax on procurement of goods and services during project construction and operations, exemption for 30 years on other levies including special excise duly, federal excise duty, WPPF and WWF.

He said in addition to the aforesaid incentives, Coal Based Power Projects and Coal Mining Projects in Sindh would also have the same incentives, concessions, protection and security package.

According to an estimate, the total reserves of coal in Pakistan are 184,656 billion tonnes. Out of these, the resources of Thar coal field alone are 175 billion tonnes.

Thar coal is low in sulphur with high calorific values, suitable to power generation and industry, he added.
 
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Credibility gap: Engro may pull out of $3b coal mining project

By Zafar Bhutta
Published: April 3, 2012

The govt has failed to clear the energy sector’s circular debt and provide 100mcf of gas per day to Engro’s fertiliser plant in Daharki. PHOTO: FILE
ISLAMABAD:
Having been bitten once by the government’s failure to keep its promises, Engro Corporation seems unwilling to let itself be sucked in once again.
The company’s subsidiary Engro Powergen is considering pulling out of its joint venture with the Sindh government for a $3 billion coal mining and power generation project after the government has failed to clear the energy sector’s circular debt and also failed to honour the sovereign guarantee to provide 100 million cubic feet of gas per day to Engro’s $1.1 billion fertiliser plant in Daharki.
Engro has gone about as far as it can on its own in this partnership. It has conducted a bankable feasibility study for a 6.5-ton per day coal mining and 1,200-megawatt power generation project. Were the project to go ahead on time, it would cost about $3 billion and be completed by 2016.
“It is now close to getting into the project execution stage and being able to attract financing and investors,” sources told The Express Tribune.
However, the sources added that Engro’s management is hesitant to pull the trigger on the project for a variety of reasons. The primary reason appears to be the government’s failure to provide the promised gas to Engro’s plant at Daharki, for which the company raised $1.1 billion mostly in debt. While the company is not facing immediate financial difficulty, its ability to continue expansion depends on the success of its previous projects.
“The government also appears non-serious. They have not developed the infrastructure that they promised they would. There is a lack of incentives, and there is low coordination between the provincial and federal governments. And they have not even resolved the issue of tariffs and coal pricing,” said one source familiar with the matter.
In addition, the company appears reluctant to trust the government’s ability to pay the promised tariffs, even once they are agree upon, given the fact that many other independent power producers have been forced to invoke their sovereign guarantees several times in order to get paid.
“No investor wants to their outstanding receivables and payment stuck. However, the government is not keen on solving circular debt,” sources close to the company said.
Engro Corporation officials were unavailable to comment on the record.
Some sources also alleged – without naming any names – something more sinister afoot. “Some interest groups are also causing hindrance in the work on the Thar Coal project and these groups are working to disrupt relations between the government and those parties interested in Thar’s coal,” sources said.
The Thar desert in Sindh is estimated to have as much as 175 billion tons of lignite, a variety of coal that is often used in power generation. Thar’s reserves can generate up to 100,000 megawatts of electricity for several decades and are likely to be an important factor in helping reduce the country’s energy import bill.
The Pakistan Business Council estimates that the country will spend $120 billion by 2020 in oil imports to meet its needs, much of which stem from the power sector. The country can currently generate about 14,000 megawatts of electricity but will need to produce about 26,000 megawatts by 2020.
While there are some hydroelectric and oil-fired thermal power plants coming online over the next few years, the bulk of the 12,000 megawatt gap in electricity production will have to come from Thar’s coal fields. Experts estimate that the country needs to generate up to 7,000 megawatts of electricity from Thar. Yet the government’s inability to live up to its contractual obligations appears to be a severe impediment in raising any investment in Pakistan’s power sector.
Published in The Express Tribune, April 3rd, 2012.
 
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Punjab to assist Sindh in Thar coal project: Shahbaz

LAHORE: Punjab Chief Minister Mian Shahbaz Sharif has said that the prevailing power crisis has hit trade and industries in Punjab, and extended the provincial government's support to center and Sindh in Thar coal energy project.

He was addressing two-day second National Energy Conference presided over by Prime Minister Syed Yusuf Raza Gilani in Lahore to find out ways to resolve the power shortage issue.

According to the government the conference is amid at finding sustainable remedy with the help of stakeholders and technocrats.

The moot was attended by stake-holders from all provinces including Gilgit- Baltistsan (GB) and Azad Kashmir and chief ministers. Representatives from all federal and provincial organizations related to the energy sector also joined the conference.

Addressing on the occasion, Shahbaz emphasized the need of utilizing all available resources for producing energy realizing 'gravity' of the issue. "Pakistan is full of natural resources but dictators have harmed the country in past. We must undo their steps," said Shahbaz Sharif.

He urged the federal government to take steps in order to convince wealthy countries of the world, including China and Korea, to invest in Pakistan's power sector.

"China and Korea can help us meet our energy demands. Immediate steps are needed to be taken to steer the country out of electricity crises. We should not wait and waste the time."

He said Punjab government was ready to assist federal and Sindh government in the Thar coal energy project, also suggesting that sugarcane could be utilized to produce 200 Mega Watt electricity.

Shahbaz was of the view that construction of Bhasha dam would surely help end the energy shortage problem. "The whole country is facing energy crisis today, including Punjab."

Punjab to assist Sindh in Thar coal project: Shahbaz - PakTribune
 
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Thar: UK-based firm to develop first coal mine

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Sindh government granted the long-awaited lease for a block on the Thar coalfield and extends for 30 years with an option be renew it for a further three decades. PHOTO: FILE


KARACHI: UK-based Oracle Coalfields bid to develop the country’s first major coal mine was boosted on Thursday as it was issued a mining lease.

Sindh government granted the long-awaited lease for a block on the Thar coalfield and extends for 30 years with an option be renew it for a further three decades.

This meeting held at Chief Minister’s House also disclosed that the company has entered a memorandum of understanding with Karachi Electric Supply Company to develop initially a 300MW mine – mouth power plant by 2015 to be scaled up to 1,100MW.

The company plans to invest up to $610 million for development of the open pit coal mine with $224 million allocated just for the mining equipment.

Oracle Coalfield CEO Shahrukh Khan on the occasion said work is expected to commence in early 2013 and full scale production of five million tons per annum coal in 2015.

Total cash costs were put at $42.21 per ton, and life of the mine at an estimated 23 years, according to multi-media news organisation proactive investors.

Thar Coal resources can be used for power generation and provide the much-needed energy security to the country, he said.
Pre-development groundwork will commence from next month which will include a four kilometre access road to their block, site office and ancillary buildings for initial management team.

Work on Corporate Social Responsibility (CSR) is also planned to commence form May 2012 which will be part of a long-term sustainable development for local communities including job creation and training of local workforce. Establishing a medical centre, provision of clean water and electricity to local communities and veterinary services for livestock of the community is also part of the plan.

Khan added that “the company remains committed to achieving its objective of earliest possible production and contribution to the energy sector”. Sindh Chief Minister said that power production will benefit the people of the province.

Published in The Express Tribune, April 13th, 2012


Thar: UK-based firm to develop first coal mine – The Express Tribune
 
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Did somebody see the TV programs on Thar coal project last few days, on AAJ and Dawn news, Dr. Samar also came on Dawn, and what he said looked promising. No pollution, clean flame, and then the b-products could be used for fertilizers and all.

But just one question. On AAJ program Bolta Pakistan, the host said that the BTU for thar gas is around 150 TU, while in the Sui gas and all the gas reaching our stoves is around 1000 BTU. But I saw some documents http://fossil.energy.gov/international/Publications/cwg_april06_ucg_reliance.pdf, on the link, Page 5. The flowchart indicates that the BTU of around 150 is used all over the world. I am don't have much knowledge in this area, can anybody shed some light on this?

Electrical generation on the flowchart is 100-180 BTU, for fields all over the world (Australia, Ukraine, Poland, South Africa etc etc)

So, did the program host make a mistake? And also by saying that nowhere in the world is electricity produced like this, while it is being produced in countries mentioned above, and total output in the world is around 80,000 MW.

So, reporter got it wrong just to score some points?
 
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Dr. Mubarakmand befooling nation on Thar Coal: Dr. Qadir
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Islamabad: Reiterating his opinion about ineligibility of Dr. Samar Mubarakmand in operating Thar Coal Project, Pakistan national hero Dr. Abdul Qadir Khan says Dr. Mubarmand is only befooling the nation.

“You see, as I am a Doctor in Metallurgy and this is my field of expertise so naturally I could work efficiently in my field only,” he said in an interview.

“Similarly, he (Dr. Mubarakmand) is an expert in Nuclear Physics and not in mineral sciences to work on projects like Thar Coal,” he added.

The leader of founding team of Pakistan’s nuclear program, Dr. Qadir is a strong critic of Dr. Mubarakmand over his stance on producing power from Thar Coal and digging out gold from Recodec in Balochistan.

“Billions have been spent on producing energy from coal but this is not the way to work,” he says in sarcastic tune.

“A Chinese firm Shen Hua had been working on generating electricity from Thar coal which was ready to invest billion of dollars on the direction of Chinese government.”

“But then prime minister Shaukat Aziz had made this willing company to run away from Pakistan with delaying tactics.”

When he was asked about Dr. Mubarakmand’s opinion that he has not been provided funds to produce electricity, Dr. Qadir reaffirmed his opinion that Dr. Mubarak has failed in generating coal power and now he was only leveling claims.

“Producing gas flame doesn’t mean that you actually are in the position to generate electricity,” the national scientist added.
 
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The CHinese company story is a very interesting one. Showing the typical behaviour of our power industry.

The Chinese got the contract and were going to produce electricity for X amount of dollars. But the Pakistani authorities were hell bent on Y amount of dollars, and there was only a marginal difference in X and Y.

See the link that I posted, there Dr. Samar is very optimistic it seems. And says that the worlds leading companies are amazed that how did we do this with no ToT.

But at the same time, objections are being raised.
 
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