Thar coal mining project in Pakistan | Updates & Discussions.

[Kompromat]

 

[King Ahmed]

In my opinion,building new and advanced nuclear power plants will be a much reliable source of energy for the country.As coal has a lot of carbon emmision and hence, will be destructive to the enviorment of the country.Take China as an example.(With no offence of any sort to my Chinese brothers)
Exploitation of coal reserves will pave way to even more corruption and mismanagement.I don't asy that we shouldn't use them, i am just saying that we should not rely on them for powering our whole provinces and cities.
Take an example of France.It has put extensive research into the Nuke energy field.And because of that, France is much more reliable for producing centrifuges.

 

[TopCat]

In my opinion,building new and advanced nuclear power plants will be a much reliable source of energy for the country.As coal has a lot of carbon emmision and hence, will be destructive to the enviorment of the country.Take China as an example.(With no offence of any sort to my Chinese brothers)
Exploitation of coal reserves will pave way to even more corruption and mismanagement.I don't asy that we shouldn't use them, i am just saying that we should not rely on them for powering our whole provinces and cities.
Take an example of France.It has put extensive research into the Nuke energy field.And because of that, France is much more reliable for producing centrifuges.

At the very early stage of development you need coal based plant instead of high tech goodies. Once the country is affluently rich then you invest on high tech green energy and eventually move out of coal based plant. All the country did that and which PK should follow instead of trying this and that. And dont worry about the environment as PK's contribution to the carbon emission is minimal and let US and China to take all the headache.

 

[Omar1984]

Thar coal seen as only solution to power crisis
​

Coal is still the cheapest fuel in the world and affordable to the poor. — File Photo



KARACHI: Renowned scientist and member of the Planning Commission Dr Samar Mubarakmand has asked the government to declare coal a matter of national security and of national importance to encourage companies to invest in this sector.

Speaking at the concluding session of the Dawn Power Generation and Alternative Energy Sources Conference held at the Expo Centre on Tuesday, he said that Thar coal could play a pivotal role in overcoming the current energy crisis, both in long and short term.

Dr Mubarakmand, who is the head of the Thar coal gasification project, said that the current energy crisis was causing losses of Rs230 billion and 400,000 jobs every year. Current dependable power supply hovers around 14,000MW in summer though it drops in the winter. On the other hand power demand in 2030 would be more than 100,000MW, he added.

He claimed that the Thar Lignite Coal reserves, spread over 9,600 square-kilometres, were 175 billion tonnes and the generation potential was 100,000MW consuming 536 million tonnes a year.

He insisted that the development of the Thar coal was the only viable long-term solution for meeting energy demands of the country. “Only Thar Coal can provide guaranteed long-term energy security to Pakistan.”

While dealing with the installed capacity and dismal generation by many power plants in the country, he suggested that a way out of the present dismal scenario was to convert the existing power generation units from furnace oil to coal gas, which is produced from surface coal gasification plants.

He said indigenous or imported coal might be used, and added that these coal gas power plants based on integrated gasification combined cycle (IGCC) plants would generate electricity at a cost of about Rs5 per KWH.

A project had been envisaged in the Planning Commission for the conversion of underground coal in Tharparkar into coal gas without bringing coal out of the ground, he said, adding that capital investment at the Underground Coal Gasification (UCG) based power generation system was be about $1 per KWH for small plants of less than 100 MW and about $0.8 per KWH for larger plants of 500MW capacity.

He said that several thousand megawatts energy was being derived in Russia, Central Asian States, Europe, the United Kingdom, Canada, Australia, China and South Africa from UCG.

A presentation by Shahrukh Khan, the chief executive officer of the UK-based Oracle Coal Fields, was encouraging from investment point of view as it also dispelled some perceptions about the quality of Thar coal and the potential of this natural resource that could significantly help the country in cutting down import bill for oil.

Oracle has got concessions for open pit mining in Block VI of Thar Coalfield (66.1 square km). Mr Khan said that there was 1.4 billion tonne Lignite Measured Resource with 371Mt net attributable proven reserves in the open pit area. It has signed a memorandum of understanding with the Karachi Electric Supply Company and mine construction was expected to commence in 2012.

He said that the electricity demand in Pakistan was projected to outstrip supply for next 20 years and coal is to become increasingly important as an energy resource management.

Allaying doubts about the veracity of Tahr reserves, he said that in 2006 China NE Geological Survey Bureau (CNGB) drilled 35 boreholes, a total of 9,852 metres, of which 5,986 metres are cored, validated by independent consultants to take it to JORC resource. A further drilling programme is planned to provide design information for the final feasibility study.

In common with most lignite mines, Thar will need to be dewatered, he said, adding that boreholes will be drilled in advance of mining to lower the water table. A hydro-geological programme is planned to confirm water flow rates and provide base data for the design of the dewatering system. The water abstracted may be used for the planned power station, after suitable treatment.

Oracle’s proposal for the development of the power plant, which has been accepted by the KESC, is to commence with the installation of 300MW and for installation increases to be carried out in 300MW increments, he said, adding that this gives Oracle and KESC greater flexibility and simplifies the project from a project finance perspective.

Sindh Coal and Energy Development Board Secretary Aijaz Ali Khan said that in view of the power generation and energy demand, rich coal reserves of Thar not only promise energy independence for Pakistan but also offer lots of opportunities for prospective investors.

He said that the government’s vision was to generate at least 10,000 MW by 2020, which will save $79 billion of foreign exchange on account of expensive imported furnace oil substitution; benefit Rs8 trillion to economy due to reduction in power generation cost.

He said that investors may install lignite drying systems appropriate for inclusion in future pulverised coal or IGCC systems developed at the Thar coal field.

Chairman Sindh Board of Investment Zubair Motiwala said there was no escape from exploring alternative source of energy.

He also emphasised the need for energy conservation and importance of Thar Coal reserves in Pakistan’s future energy paradigm.

 

[Omar1984]

Thar coal project to resolve energy crisis, says Qaim
​

* 20.5% IRR for firms achieving financial closure by December 2014

By Masroor Afzal Pasha

KARACHI: The Sindh government Tuesday furnished the details of the ‘fiscal incentive package’ for Thar coal mining project, which was recently approved by the Economic Coordination Committee (ECC).

While addressing a press briefing at the Chief Minster’s House, Chief Minster Qaim Ali Shah highlighted the findings of the bankable feasibility study successfully completed by Sindh Engro Coal Mining Company (SEMC).

He said the SECMC has confirmed the technical, environmental and social viability of the Thar coal-mining project. “Thar coal reserve will play a vital role in resolving the persisting energy crisis in the country and ensure much needed energy security for the country and provide sufficient and affordable energy,” he added.

He informed that on October 15, the ECC took a landmark decision by approving the fiscal incentive package for attracting foreign direct investment (FDI) in Thar. The package includes attractive incentives for fast track development of Thar coal and was approved to declare Thar as area of strategic importance, a Special Economic Zone (SEZ) and of national security, he added.

The incentives provide 20 percent (dollar-based) internal rate of return (IRR) to firms that achieve financial closure before December 2015 for mining and power projects based on indigenous coal and an additional half a percentage IRR ie 20.5 percent for firms that close by or before December 31, 2014, he added.

Zero percent Customs duty has been announced on import of coal mining equipments and machineries, including vehicle for site purpose, he said, adding that withholding tax on dividends for the initial 30 years was exempted.

The incentive also offers exemption on withholding tax on procurement of goods and services during project construction and operations, including exemption for 30 years on other levies, including special excise duty, federal excise duty, WPPF and WWF, Qaim informed

He said that in addition to the above incentives, coal-based power and coal-mining projects in Sindh would have the same incentives, concessions, projections and security packages, as available to independent power producers (IPPs). The Thar Coal Energy Board (TCEB) would also function as coal-pricing agency, he stated.

 

[Omar1984]

Reserves from one block enough to generate 5,000MW for 50 years
​

* The government would not charge levies including federal excise duty for the first 30 years.


KARACHI: A feasibility study of Thar coal reserves has been completed, confirming that two billion tons of coal reserves are available in Block II alone – a quantity enough to generate 5,000 megawatts of electricity over the next 50 years.

This was disclosed by Chief Minister Sindh Syed Qaim Ali Shah during a press briefing at the CM House on Tuesday.

“The Economic Coordination Committee has granted an incentive package to attract foreign investors to Thar, ” said the chief minister. “The declaration of the region as a special economic zone and area of strategic importance has also been approved.”

Giving details about the incentives, he explained that the government would guarantee an internal rate of return of 20 per cent to firms which will achieve financial close by 2015 and investors will be exempt from paying customs duties on the import of coal mining and construction machinery for a period of 30 years.

“Under the federal government’s incentive package, Thar coalfields would be declared a project of national security.”

As part of the package, the government would not charge levies, including federal excise duty and withholding tax, for the first 30 years in a bid to attract investors.

Shah said that the government would have to provide infrastructure at the field and assured that the federal and provincial governments, both, would provide funds for the provision of water. He added that efforts were underway to connect the fields with the network of roads.

“The generation of power using indigenous reserves will conserve precious foreign exchange spent on the import of oil while creating numerous employment opportunities,” said Asad Umar, president of Engro Corporation at the ceremony held to mark the completion of the feasibility study.

He estimated that the development of Block II alone is expected to bring an investment of billions into the country.

Sindh’s finance minister Murad Ali Shah, minister for revenue Jam Mehtab Dahar and adviser to CM on planning Kaiser Bengali were also present on the occasion.

Published in The Express Tribune, October 2010.

 

[ViXuyen]

Looks like coal is not really a rare resource at all. At the Red river delta of Vietnam, we also have a reserve of at least 200 billion tons. We're in the process of negotiating with the Japanese to develope the technology to exploit it.

 

[mughaljee]

we all know this, QAIM, blah blah,
what is his government doing ?
did they produce any single unit of electricity till yet ?

 

[khuramonline]

may this govt successfuly take the results.

It will be better for govt and rulers both!

 

[Omar1984]

Thar coal project: lenders’ criteria met, CM told
​

Chief Minister Sindh Syed Qaim Ali Shah on Saturday presided over a meeting regarding the Thar Coal infrastructure development.

The President, Engro Mr Asad Umar, along with the CEO, Engro Power, Khalid Mansoor informed the meeting that detailed bankable feasibility study had been completed by the internationality renowned consultants as per target date of August 31, 2010. He briefed the participants that technical, environmental, and social viability of the project had been confirmed to have met all international lender’s standards (IFC/World Bank, ADB etc)

The Engro CEO emphasised that early closure of infrastructure activities was critical to the Thar Coal project timelines.

Sindh Secretary, Coal & Energy Development Department, Mr Ajaz Ali Khan briefed the meeting on the status of various initiatives taken by the Government of Sindh to meet the timetables. He said that the PC-I for 300 cusecs water supply schemes had been approved by PDWP in July 2010. Consultants have been mobilised for preparing feasibilities for effluent disposal and broad gauge railway link and PC-I for upgradation of roads bas been prepared by the Works & Services Department. Mr Aijaz Ali Khan presented a revised strategy for addressing infrastructure milestones.

The Chief Minister, Sindh, appreciated the Sindh Engro Coal Mining Company (SECMC) for completing the detailed feasibility within a record eight months. The Chief Minister, after detailed discussions, decided to constitute a ministerial committee to expedite infrastructure schemes pertaining to Thar coal. The committee will approach key federal ministers and expedite approvals required for infrastructure schemes on a priority basis. The committee shall comprise Syed Ali Nawaz Shah, Minister for Agriculture, Syed Murad Ali Shah, Minister for Finance, Jam Saifullah Dharejo, Minister for Irrigation & Power, Dr Kaiser Bengali, Advisor to Chief Minister, Sindh, for Planning & Development, Mr Aijaz Ali Khan, Secretary, C&EDD to act as Secretary of the committee. It was informed that the Government of Sindh would allocate Rs10 Billion every year for next five years to Thar coal infrastructure schemes.

It was decided that Federal Government would be approached and requested to provide matching grant of Rs10 Billion each year as being committed by Government of Sindh (GoS) to stress unwavering commitment to Thar Coal development. It was decided that the allocation of Rs8.0 Billion in ADP 2010-11 earmarked for that coal development will be distributed to critical infrastructures schemes required for the Coal development, viz., Rs4 billion to I&P for Makhi-Farsh water supply scheme; Rs2.0 billion to SIDA/I&P for effluent drainage scheme; and Rs. 2.0 billion to NIDC for initiating laying of Transmission lines.

This allocation and transfer of funds would initiate development activities. It was further decided that Rs2 billion allocated in 2010-11 for Coal fund and shall be transferred to Fund Management House so that it can later on the secured and transferred as share of quit to Mining project.

The Chief Minister, Sindh, approved that coal-related projects and ADP schemes would be exempt from the policy of the 50 percent proposed cut. It was also decided that a campaign will be launched to seek international financing for infrastructure Development. As part of strategy to expedite infrastructure development related to Thar Coal it was decided that an international EOI would be floated to seek proposals from international companies interested in the Thar coal Infrastructure project.

 

[Omar1984]

Thar coal mining and power generation projects
​

Sindh govt assures foreign investors of full facilitation

* United Arab Emirates and Turkey show keen interest in projects

By Masroor Afzal Pasha

KARACHI: The Sindh government has assured all foreign investors interested in Thar coal mining and power generation projects of full facilitation. Sindh Chief Minister Syed Qaim Ali Shah extended all out support and assistance to foreign investors in a joint meeting with delegations of UAE’s Bilal Transport and Turkey’s Demir Mining on Friday.

The Sindh CM was impressed by the views of the delegations on Thar and the interest shown by them. The delegations were assured that the Sindh government would extend all out support and assistance to them. He also encouraged them to invest in infrastructure projects in the Thar region and in other flood-affected areas of the province.

The delegations apprised the Sindh CM that there are joint ventures in both companies and they had shown interest in Thar coal as well as infrastructure development. They said they had visited Thar along with Thar Engro coal mining, and they were quite impressed with the work done by Sindh Engro.

The delegation also informed the Sindh CM that they have been operating a similar mine in Turkey since 1988, producing 6.5 million tonnes of coal annually, and they have all required machinery for mining, which they can transfer to Pakistan for this project. They said negotiations with Sindh Engro coal mining were underway and hoped to reach an agreement soon.

The meeting was also attended by Sindh Agriculture Minister Ali Nawaz Shah, Thar Coal Energy Board Secretary Aijaz Ali Khan, Ali Raz Altaf, Mirza Zafar Hussain, Sher Afghan, UAE’s Abdullah Hakeem and Aykan Daskir, and Turkey’s Kaya Kocal and Oguz Atil Karawercan.

 

[Omar1984]

Thar Coal to energize Pakistan
​

* 20.5% IRR for firms achieving financial closure by December 2014

KARACHI: The Sindh government Tuesday furnished the details of the ‘fiscal incentive package’ for Thar coal mining project, which was recently approved by the Economic Coordination Committee (ECC).

While addressing a press briefing at the Chief Minster’s House, Chief Minster Qaim Ali Shah highlighted the findings of the bankable feasibility study successfully completed by Sindh Engro Coal Mining Company (SEMC).

He said the SECMC has confirmed the technical, environmental and social viability of the Thar coal-mining project. “Thar coal reserve will play a vital role in resolving the persisting energy crisis in the country and ensure much needed energy security for the country and provide sufficient and affordable energy,” he added.

He informed that on October 15, the ECC took a landmark decision by approving the fiscal incentive package for attracting foreign direct investment (FDI) in Thar. The package includes attractive incentives for fast track development of Thar coal and was approved to declare Thar as area of strategic importance, a Special Economic Zone (SEZ) and of national security, he added.

The incentives provide 20 percent (dollar-based) internal rate of return (IRR) to firms that achieve financial closure before December 2015 for mining and power projects based on indigenous coal and an additional half a percentage IRR ie 20.5 percent for firms that close by or before December 31, 2014, he added.

Zero percent Customs duty has been announced on import of coal mining equipments and machineries, including vehicle for site purpose, he said, adding that withholding tax on dividends for the initial 30 years was exempted.

The incentive also offers exemption on withholding tax on procurement of goods and services during project construction and operations, including exemption for 30 years on other levies, including special excise duty, federal excise duty, WPPF and WWF, Qaim informed

He said that in addition to the above incentives, coal-based power and coal-mining projects in Sindh would have the same incentives, concessions, projections and security packages, as available to independent power producers (IPPs). The Thar Coal Energy Board (TCEB) would also function as coal-pricing agency, he stated.Thar coal project to resolve energy crisis, says Qaim By Masroor Afzal Pasha

 

[flameboard]

This better not be sold off...

 

[Omar1984]

Thar coal field declared SEZ
​

ISLAMABAD (October 21, 2010) : The Economic Co-ordination Committee (ECC) of the Cabinet has approved incentives for development of local coal which include declaration of Thar coal field 'Special Economic Zone' (SEZ), official sources told Business Recorder. The ECC in its meeting on October 15, 2010, was informed that Thar coal field in Sindh is spread over more than 9000 sq km and is bestowed with 175 billion tons of lignite coal, which can fuel power generation of over 100,000 MW for more than two centuries.

In order to expedite development of Thar coal field and attract investments, the federal government and provincial government of Sindh have joined hands by constituting 'Thar Coal & Energy Board' (TCEB), headed by Sindh Chief Minister, which is empowered as a one-stop decision-making body.

The federal government is represented on the TCEB through Minister for Water and Power as its Vice Chairman, Minister for Finance, Law Minister and Deputy Chairman of Planning Commission. Sources said that all relevant stakeholders thoroughly deliberated and drafted a comprehensive incentive package. A committee, headed by Deputy Chairman of Planning Commission, also recommended that Thar coal field be declared SEZ, and the project of development of Thar should be declared as 'project of national security'.

The National Electric Power Regulatory Authority (Nepra) should allow 20.5 percent and 20 percent internal rate of return to companies which achieve financial close before 31st December, 2014 and 31st December, 2015, respectively. To meet infrastructure requirements (water, mine construction/operator, effluent disposal system, roads network transmission line, resettlement, health and safety infrastructure, railway line and clear titles of land) an amount of $300 million per year may be committed for the next 5-6 years for timely completion of these projects. TCEB will function as 'Coal Pricing Agency'.

During discussions it was stressed that in order to sustain economic growth, Pakistan needs to develop its indigenous energy resources rapidly. Proposed investment in development of Thar coal mines will provide benefits like strategic energy resource, import substitution of expensive raw furnace oil (RFO), lower power tariff for coal-fired power plants, and improve socio economic development in Thar region. It will also lead to skilled job creation and transfer of technology.

To achieve these benefits, extension of incentives is essential to attract investors, failing which, the project will remain unimplemented for another long period. It was however, observed that, while considering the project, environmental issues should be addressed and actual cost be determined by Nepra.

 

[Omar1984]

Coal-fired power plants to get incentives available to IPPs
​

ISLAMABAD (October 24, 2010) : The government has decided to extend all incentives to coal-fired power plants that are enjoyed by the Independent Power Producers (IPPs), sources close to Secretary, Board of Investment (BoI) told Business Recorder. Other incentives which have been approved by the Economic Co-ordination Committee (ECC) of the Cabinet for coal based projects are as follows:

(i) Thar coalfield be declared as Special Economic Zone (SEZ) and the projects of development of Thar (also including coal mining and power generation) be declared as " projects of national security;

(ii) 20 percent (dollar based) Internal Rate of Return (IRR) to firms which achieve financial close before December 31, 2015 for mining and power projects based on indigenous coal and additional half a percentage IRR ie 20.5 percent IRR for firms which achieve financial close by or before December 31, 2014;

(iii) zero percent customs duty on import of coal mining equipment and machinery including vehicles for site use;

(iv) exemption on withholding tax to shareholders on dividend for initial 30 years;

(v) exemption on withholding tax on procurement for goods and services during project construction and operations; and;

(vi) exemption for 30 years on other levies including special excise duty, federal excise duty, WPPF and WWF.

In addition to these incentives, coal based power projects and coal mining projects in Sindh will have the same incentives, concessions, protections and security package as that available to IPPs developed pursuant to Power Generation Policy 2002 (as amended from time to time). Thar Coal and Energy Board Sindh will also function as the coal pricing agency, sources said.