With its gas reserves nearly depleted, Pakistan generates 37% of its electricity using oil which is the most expensive source of power generation while there is negligible reliance on its available coal reserves. Thar, with 175 billion tons of coal, is home to the 7th largest coal reserves in the world and is foreseeably the only viable and sustainable solution to Pakistan’s energy shortfall which currently exceeds 5000 MW. The abundance of these reserves can be equated in energy terms to the combined oil reserves of Iran and Saudi Arabia and are capable of producing 100,000 MW of electricity for the next 200 years.
SECMC’s involvement and interaction with its local community during its mining, land acquisition and resettlement related activities will increase as it will work towards alleviating the ongoing energy crisis by producing electricity through world class mining activities in Block II, Tharparkar. While doing so it will also ensure benefits for its community by building and developing sustainable and independent livelihoods, providing education and health care, housing, improved water and sanitation conditions, while empowering men and women with employment and other indirect entrepreneurship opportunities.
In 2010, Sindh Engro Coal Mining Company completed the Bankable Feasibility Study (BFS) for Thar Block II Coal Mining Project by engaging internationally renowned Consultants such as RWE-Germany, Sinocoal-China, SRK-UK and HBP Pakistan, meeting all national / international standards. The Feasibility has confirmed the technical and commercial viability of the Project and also that there are no significant or unmanageable environmental threats and social implications associated with the Coal Mining Project in Thar Block II.
SECMC has undertaken the execution of mining operations for coal extraction in the Thar coalfield, Block II, as a means of tackling energy deficiency across Pakistan. In so doing, SECMC has made several investments which include, but not limited to, the acquisition of land for the resettlement of communities, mining facilities and services, and power plants.
Thar has 175 billion tons of coal and is home to the 7th largest coal reserves in the world
SECMC’s Thar Block II can produce 5,000MW for the next 50 years.
SECMC will execute the project in three phases. The first phase of the Project is underway, in which, two 330 MW sub critical plants will be established with majority share of Engro Powergen and is expected to be completed by 2017. In the second phase the mine will be further expanded to 7.6 MTPA and additional 2 x 330 MW will be added. Subsequently in phase three the mine will be taken to its potential of 33 MTPA capable of generating 3,960 MW.