Pakistan inaugurates Phase-III expansion of Thar Block-II coal mine, boosting capacity 47% to 11.2 million tonnes

Profit by Pakistan Today reported that a third-phase enlargement of the Thar Block-II mine was inaugurated on Monday, lifting annual capacity by 47% to 11.2 million tonnes from 7.6 million. The 3.6 million tonne addition was financed entirely from internal resources, project officials said, and was carried out without outside borrowing. Pakistan Peoples Party chairman Bilawal Bhutto-Zardari performed the ceremony, which also marked the start of what officials called the country's first coal drying unit.

The extra coal will feed Lucky Electric Power Company's 660-megawatt plant, lifting the coal-backed generation capacity of Thar Block-II from 1,320MW to 1,980MW. Officials said the expanded mine could supply electricity to about 4.5 million households daily and cut generation costs by roughly Rs15 billion a year. They added that replacing imported fuel would save around $220 million in foreign exchange each year.

Cumulative foreign exchange savings from the mine have passed $1.7 billion since commercial operations started, according to officials. SECMC chief executive Amir Iqbal said the project supports energy security and growth, while Sindh Chief Minister Syed Murad Ali Shah recalled that coal-based power plans for Thar were first pursued in the 1990s. Officials put mine-mouth generation cost at about $3.75 per MMBtu, which they said is close to three times lower than imported coal.