Thar coalmine begins third expansion

Expansion work has started on a third phase at the Thar Block-II mine in Tharparkar, Sindh, according to The Express Tribune. Once complete, yearly output would reach 11.2 million tonnes, up from 7.6 million. The added coal is intended to feed cheaper electricity generation using domestic fuel.

Sindh Engro Coal Mining Company (SECMC) started commercial activity at the site in 2019, giving it room for 3.8 million tons each year. A second stage finished in 2022 lifted that figure to 7.6 million tons. The new stage adds another 3.6 million tonnes, making it the third widening in seven years.

Lucky Electric Power Company Limited will receive the extra coal for its 660-megawatt plant. Once that happens, SECMC will supply plants with combined capacity of 1,980 MW, including Engro Powergen Thar, Thar Energy and ThalNova Power Thar. The levelised coal tariff is projected to drop, from $36.72 per tonne to $32.01. Those changes are projected to lower generation costs by around Rs15 billion a year and reduce fuel imports by about $220 million.