Karachi: Sindh Engro Coal Mining Company (SECMC) Board on Monday (November 01) has approved the expansion of Thar coal Block II mine to an operational capacity of 12.2 million tonnes per annum, news sources reported. The USD 93 million worth project will be completed by June 2023.
According to the Engro Energy Spokesperson, the mine output now stands at 3.8 million tonnes per year, which is primarily used in the production of the country’s 660-megawatt coal-fired power plants. With the growth of mining capacity, coal costs will fall to USD 27 per tonne from the current price of USD 60 per tonne of coal. Furthermore, it was stated that the completion of the Block II extension project will save the government USD 450 million in imports as well as PKR 74 billion in circular debt.
It is important to note that Pakistan now produces 32% of its electricity from coal-fired power facilities built under the China Pakistan Economic Corridor (CPEC). However, as the price of coal on the international market rises, power plants are operating at less than full capacity. According to the press release, after the expansion project is completed, Pakistan would have a sustainable and steady supply of coal for its domestic requirements until 2030.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
