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Thar coal: MoU to set up 6,000MW power plants

A Memorandum of Understanding (MoU) was signed between Sindh Engro Coal Mining Company Ltd (SECMC), China Power International Holding Ltd (CPIH), and Sino Sindh Resources (Pvt) Ltd (SSR) to develop Thar coal based power plants in Sindh with a generation capacity of 6,000 megawatts (MW).

According to the MoU, the parties have agreed to jointly develop coal-fired power projects with a total installed net capacity of 6,000 MW in Sindh, Pakistan, , within the next 10 years, which will be expected to use lignite coal mined from Block-I and Block-II in Thar Coalfields.

CPIH will be the majority shareholder and will be responsible for the implementation and execution of the power projects subject to the signing of the formal agreement and the approval of Pakistan Government.

The power projects will be developed in five phases of 1,200 MW each. Coal mining will be independently developed by SSR and SECMC for Block-II and Block-II, respectively, who will supply coal based on the coal demand created by the power projects developed by CPIH.

CPIH is a wholly-owned core enterprise of China Power Investment Corporation, one of five State Power Corporations in the People’s Republic of China. The principal business of CPIH is to develop, construct, own, operate and manage large power plants. Currently the company is managing power plants with a generation capacity of more than 23,000 MW.

SSR and SECMC are the developers of Thar Coal Mining Blocks-I and Block-II, respectively.

The Thar coalfields contain the world’s seventh largest coal reserves estimated at 175 billion tonnes, capable of generating 100,000 MW over the next 200 years, according to the government of Sindh.

Thar coal also has the advantage of economies of scale, which will result in a progressively lower coal price and predictable electricity price as the mining operation scales up and more power plants are added. Utilisation of Thar coal for power generation will result in huge forex savings.

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