The Chinese company Global Mining, which was allocated Block I of the Thar coalfield, initially intends to mine five million tonnes of coal a year and produce power up to 900MW that would be scaled up to 2,100MW.
Sindh Board of Investment Chairman Zubair Motiwala while giving a briefing on the process of international competitive bidding during the 13th meeting of the Thar Coal and Energy Board (TCEB) presided over by Chief Minister Qaim Ali Shah at the Chief Minister’s House, also said that Chinese firm is willing to invest $1.5 billion in key infrastructure projects. The chairman of the company, Lizhi Zhao, is expected to sign the memorandum of understanding with government of Sindh on August 26.
Besides, an Australian company Australasian Continental Energy has also submitted a proposal to initially mine six million tonnes of coal a year that would be scaled up to 18 million tonnes. It initially intends to generate 1,100MW in five years that would reach 2,000MW in 10 years and 3,000MW in 15 years.
The evaluation committee recommended to the board that in view of the track record of fundraising for similar projects by its sponsors, the Australasian Continental Energy could be offered Block IV, subject to condition that they would provide the Sindh government a credible financing plan for the project including debt and equity financing, their audited financial statements and other required documents within two months. The TCEB approved the recommendation of the evaluation committee.
Coal and Energy Secretary and TCEB Managing Director Muhammad Younus Dhaga briefed the participants of the meeting about status of the development of various blocks of the Thar coalfield.
He said that dried coal (lignite) from Thar, after the briquetting process, can be transported and utilised by retrofitted thermal power plants.
It is estimated that up to $8 billion could be saved every year if the existing thermal power plants can be converted from furnace oil to coal.
He further explained that there is a capacity of 2,976MW in generation companies and 2,150MW in independent power producers that can be converted to coal at a cost of up to $1.8 billion.
This will reduce the tariff by 8-10 cents/KWH. However, these plants can initially use imported coal.
Underground Coal Gasification Project Chairman Dr Samar Mubarakmand briefed the TCEB about the project for the generation of 100MW of electricity through the process of underground coal gasification at Block V of the coalfield. The project has been started and funds were released for this purpose on April 28.
Up till now, $9.22 million have been released and the allocation for the project during the PSDP 2011-2012 is $2.4 million. Due to the earthquake and tsunami in Japan, Hitachi has delayed the supply of compressors for five months and they will arrive here in September.
The first of the gasifiers has been completed with over 36,000 feet of drilling and 18,000 feet of steel-casing.
The first test burn is expected in September. The total gas produced will be connected to power turbines to generate electricity. The electricity generation of 100MW will start by December 2013.
Irshad Arain of the National Transmission and Despatch Company informed the board that his company is working for provision of 1200MW from Thar to upcountry by constructing 500KV transmission lines from the power plant to Matiari along with the extension of the 500KV grid station in Mitiari by June 2014.
This project is being financed by the China Development Bank with an estimated cost of Rs 20 billion.
The chief minister assured the board that Sindh government is giving high priority to the provision of infrastructure to the coalfield. “Federal Water and Power Minister Naveed Qamar has assured the Sindh government that the Centre would provide assistance for all Thar projects,” he added.
