Bilawal Bhutto inaugurates Thar Coal Phase-III expansion and Pakistan’s first coal drying unit

Add ARY News on GoogleFollow on Google DiscoverImage Social MediaAAResizePakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari has inaugurated Phase-III expansion of the Thar Block-II Coal Mine and Pakistan’s first-ever Coal Drying Unit in Sindh, as authorities seek to increase domestic energy production and reduce reliance on imported fuel.

Officials briefing the ceremony said the Phase-III expansion will increase the mine’s annual production capacity from 7.6 million tonnes to 11.2 million tonnes per annum (MTPA).

The additional coal will supply a 660-megawatt power plant operated by Lucky Electric Power Company, increasing from 1,320 MW to 1,980 MW, enough to supply electricity to approximately 4.5 million households every day.

Project officials said the mine-mouth power generation cost stands at approximately $3.75 per MMBtu, making it one of the cheapest energy sources available in the country and nearly three times cheaper than imported coal.

The expansion is expected to save around Rs15 billion annually in power generation costs and approximately $220 million in foreign exchange every year, while cumulative foreign exchange savings since operations began have already exceeded $1.7 billion.

Addressing an event, Sindh Chief Minister Syed Murad Ali Shah described the expansion as the latest stage of a project whose origins date back to 1996, when then Prime Minister Benazir Bhutto laid the foundation stone for a proposed 2,640-megawatt coal-based power project in Thar.

Murad Ali Shah said the project was delayed for years following the dismissal of Benazir Bhutto’s government, before being revived after the PPP returned to power in 2008.

The Chief Minister recalled that there were times when the project faced uncertainty and even a lack of support at the federal level. However, through determination and partnership between the Government of Sindh and private investors, the project moved forward.

“This project represents the fulfilment of a vision passed from one generation to another,” Shah said.

The Thar coal project has been promoted by the Sindh government as a way of using the region’s large coal reserves to improve Pakistan’s energy security while creating jobs and economic opportunities in one of the country’s historically underdeveloped areas.

CM Sindh said development around the coal project had brought roads, schools, hospitals, an airport and clean-water schemes to parts of Tharparkar.

According to figures presented at the ceremony, 94 percent of employees and service providers working with the project are from Sindh, while 60 percent are residents of Tharparkar.

He also said more than 500,000 people had received free medical treatment through community initiatives, while more than 12 million litres of clean drinking water were being supplied each month.

Over 5,000 students are enrolled in educational institutions established through community development programs.

The chairman of PPP was informed that approximately 1.2 million trees have been planted under environmental conservation programs, while thousands of households have benefited from solarization, sanitation and livelihood schemes.

The Sindh government said a 50-bed mother and child hospital in Islamkot was expected to be completed within a year.

Concluding his address, Chief Minister Murad Ali Shah thanked the people of Thar for contributing their natural resources to strengthen Pakistan’s energy security.

“The people of Thar have given Pakistan a priceless asset. Today Thar is changing, Pakistan is progressing, and our journey of development continues with renewed speed and determination,” he said.

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