Thar Block II: Phase III to raise mine output to 11.2mn tonnes a year, says CM Murad

Business Recorder reported that Sindh Chief Minister Murad Ali Shah expects annual output at the Thar coal mine to rise by 3.6 million tonnes, from 7.6 million to 11.2 million, once Phase III of the Thar Coal Block II project is complete. The provincial government inaugurated the phase in Tharparkar on Monday, according to an official statement. Shah added that the project is being funded entirely from its own resources.

Shah put the mine-mouth power cost at $3.75 per MMBtu after the phase, saying domestic coal electricity would be roughly a third of the cost of power made from imported coal. Phase III will let the 660-megawatt plant of Lucky Electric Power Company run on Thar coal, lifting total Thar power generation to 1,980 MW. He estimated annual savings of about Rs15 billion in generation costs, equal to $54 million, and roughly $220 million in foreign currency each year.

Shah also said the government is weighing coal gasification to turn Thar coal into urea and syngas, a step that would cut reliance on imported fuel. Foreign exchange savings from the project have already exceeded $1.7 billion, and a proposed Thar Rail line would make the coal available nationwide.