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Thar coal mining project in Pakistan | Updates & Discussions.

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After the discovery of the Thar Coal Field in Sindh, Pakistan has the 2nd largest coal reserves in the world. U.S.A. has the largest coal reserves in the world.

Can you give me any link about the discovery of coal reserve in thar.

i am unable to find any authentic link
 
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Can you give me any link about the discovery of coal reserve in thar.

i am unable to find any authentic link

Browse through the pages of this thread and read the articles provided. Theres more than enough information in this thread with links provided.
 
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According to Pakistan Economy Watch the coal deposits in Thar can change the fate of the country if utilized in a proper way. It can save oil import bill, reduce unemployment and help strengthen economy, rupee and FOREX stocks.

Dr Murtaza Mughal president of Pakistan Economy Watch in a statement said that 185 billion tonnes of coal worth USD 25 trillion can not only cater the electricity requirements of the country for next 100 years but also save almost four billion dollars in staggering oil import bill.

He said that "The project which is in limbo since a decade can help thousands of households by providing employment and help save oil import bill by USD 4-4.50 billion and help FOREX reserves to swell. It will also stabilize sliding rupee. He added that this project has already become bone of contention between the centre and Sindh province and uncertainty looms, adding that the statements of MQM Chief Mr Altaf Hussain regarding the arrival of Taliban in Karachi could pose a serious threat to this project.

Mr Murtaza said the coal power generation would cost Pakistan PKR 5.67 per unit while power generated by Independent Power Projects cost PKR 9.27. He said that "There is a remarkable difference that will certainly life economy of the country and will provide a break to poor. He said that the German, Chinese and other companies had not only carried out surveys and feasibilities of this project but also offered 100 percent investment in last 7 to 8 years but the petroleum barons always discouraged them in a very systematic way.

He demanded a probe into the matter as some elements deprived people of Pakistan from cheap source of energy for too long in their own interest. He said that petroleum lobby is very strong in Pakistan and they are against any other means of power generation except for the imported oil. This lobby is major beneficiary of the increasing oil bill that is estimated above 15 billion dollar this year.
 
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This new govt. comprise of anti state elements and criminals from jail... pardoned under executive orders and than promoted to become interior minister... who wish to control ISI and hand over Shuja Pasha to India for interrogation and trial for Mumbai terror drama... i remember Zardari and Rehman Malik promised India to punish Pakistan army over Mumbai incident.
 
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I have on question ?
which kind of technology we will use ?
you know old technology for production electricity causes environmental issues ?
(Carbon gas) and if we utilized this reserve in full swing it would be bad effect in our area regarding pollution.
 
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self delete
 
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Pakistan is marred by an energy crisis that has no precedent in its 63-year history. Although, blessed by natural resources, the country has failed to utilise its reserves for the enhancement of its industry and economy. Since the past three years, due to improper planning, lack of long-term strategies, and an increasing circular debt, our energy generation capacity has decreased to dangerously low levels, while the demand is only increasing. As a result, over a billion rupees are lost each year in the frequent power outages (load-shedding) that occur every day throughout the country.

Professor Mrs. Shamim Humayun, a renowned academic says, “Pakistan has fallen into a vicious circle of crisis upon crisis, and not because it lacks the means. Geographically speaking, our country has been blessed by countless natural resources. The rivers that come down from the North make the building of dams perfectly feasible, and the amount of coal present in the country along with alternative energy can make Pakistan an exporter of energy if properly utilised. For that, our policies need to be more focused, and energies channeled in the right direction, rather in politicising every aspect of developmental projects.”

We are engulfed in this crisis not due to the reason that the country has no ability to generate its power, or the excuse that it lacks natural resources for the said purpose. In fact, according to PEPCO, the current installed capacity for electricity is over 17,000 MW while electricity generation hovers at around 12,000 MW only. The myopia in policy planning is seen at all fronts, whether it is conventional energy or alternative.

For the past seven years, due to various reasons, Pakistan’s economy witnessed a consistent growth. As a result, energy requirements of the country increased drastically. While the power generation capacity was still more than the requirement in 2007, the power plants were generating at a sub-optimal level. Even now, the total capacity of electricity generation is more than the demand, but due to line losses, circular debt forcing power plants to produce at less than half of their capacity, and fluctuating oil prices, the output is considerably less than the installed capacity, and even less than the demand. As a result, frequent power outages become an obstacle for economic activity in the country, commercial centers are shut down and people lose their jobs, leading to a vicious circle of unemployment, hunger, and poverty.

Solution lies within Pakistan

If we analyse the energy mix in Pakistan we find it extremely imbalanced due to exceedingly high dependence on gas and imported oil, which costs a substantial amount of foreign exchange to the national exchequer. Fluctuations in oil prices have a considerable impact on the power generation capacity of Pakistan. The question that comes to the mind of an average citizen is, after three years of promises, why has the government been unable to guarantee electricity, and what needs to be done?

The answer lies within Pakistan. If we exploit the natural reserves of coal available in the Thar region of Sindh, it will generate employment, save valuable foreign exchange, and become a sustainable, reliable and less expensive indigenous fuel. The contribution to economy, which is projected to be in billions of dollars, the generation of energy to an unprecedented scale, up to 100,000 MW per year for the next 200 years, and the creation of over 200,000 jobs in the arid region of Thar, are the major outcomes of this deserted desert, and yet we crave for rental power plants.

However, drowned in the worst flood in recent memory, ripped apart by a sectarian violence of reprehensible degree, and societal mob crimes of heart-wrenching proportions, Pakistan has been left in a fix. The government, as well as the nation has been politicised, and so is every project that fails to see the light of day because of political concerns of one party or another. Whether it is Kalabagh or Thar Coal reserves, we have latent opportunities piling up each day.

“Deepening economic woes and instability in the economy not only hinder ongoing developmental strategies, but put a halt on future prospects of developing or initiating any major project. Plans to start work on Thar Coal reserves have been in the pipeline since decades in the past, but various economical and political reasons have managed to make it a secondary concern,” said Dr. Younus Jafri, Advisor, Economic Planning Commission.

Even though, various feasibility studies have been conducted for the extraction of Thar coal reserves, which are the fifth largest in the world, actual ground work has not yet started. And now, with the recent devastation caused by the flood in Pakistan, it seems the go-ahead of coal extraction in Thar will have to wait even further.
It was decided by the government, in a workshop organised by the Geological Survey of Pakistan in 2005, to enhance the share of coal in the energy mix to five per cent, to 18 per cent by 2018, and further to 25 per cent by 2020. Perhaps, a realisation did occur, but there are many a slip between the cup and lip, and so as it happened, nothing materialsed when transferring work from paper to ground.

Currently, Pakistan is losing over a billion dollars each year due to no electricity. Power-outages have crippled the economy and the everyday life of urban residents and even more so of the rural areas of Pakistan, where electricity provision has been as low as four hours per day. According to PEPCO, the projected demand in the next 20 years would increase tenfold, at 113,695 MW; the supply and demand gap will increase drastically if proper measures are not taken in time.

The current power crisis came to the forefront in late 2007, and since then it has turned to be a great challenge, not only for the developing economy of Pakistan, but the whole nation itself. While the government is looking towards rental power plants as a short-term solution, it has only a vague idea of securing the energy requirements of Pakistan in the long run. There have been negotiations with foreign countries to provide assistance; as a result, China has planned to build two more nuclear reactors in the country, while Turkey funded a wind farm next to the 700 kilometer coastal belt of Pakistan. Although, nuclear and wind energy is being harnessed, its contribution is almost negligible in the energy sector of Pakistan.

Moreover, there has been government backing to a single solar energy project, which is planned for domestic usage, but has a considerably higher cost than the other alternatives available. Even though these alternatives, including solar power, are not a part of the energy mix of Pakistan currently, they can be utilised to a greater degree in the future.

In the process of deciphering this crisis, one has to look at the policies that serve as the foundations of the country’s modus operandi. Lack of proper planning and inept policies are the reason for the extreme imbalance prevalent in our energy mix – not to forget that we are actually importing 2.5 million tons of coal per annum for our needs.
 
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ISLAMABAD (October 28, 2010) : The Sindh Engro Coal Mining Company (SECMC) has reportedly completed the detailed feasibility study of coal mining project with the capacity to produce 6.5 million tons per annum coal from Block-II of Thar coalfield, as per schedule.

"The project is technically viable. However, to ensure its economic viability it is essential to have in place the required fiscal incentives and infrastructure related to Thar coal development which has to match the timelines of the project," official sources told Business Recorder.

The Sindh government is of the view that no investor can achieve financial close for a project of this level without required incentives and provision of robust infrastructure. Provision of infrastructure is the responsibility of the government; hence, it requires appropriate commitment on the part of the government to attract, and retain, investment.

Sindh-Engro Joint Venture is a pioneering project, which is progressing on fast track, which explains why the first phase of the detailed feasibility has been completed in a record time of eight months. SECMC further stated that to sustain this momentum of the project it is essential that enabling environment should be provided so as to meet the project timelines. The SECMC is now planning to approach the lenders for project financing, for which approved fiscal incentives and approval of infrastructure projects, with financing arrangements, is required.

These include provision of water, effluent disposal system, transmission lines, road and railway network, etc. The Chief Executive Officer has requested the Sindh government to expeditiously act with regard to infrastructure and other allied matters.

Furthermore, the Council of Common Interests (CCI) in its meeting on July 18, 2010, had decided that the Ministry of Water and Power should develop a scheme, with foreign funding, for development of infrastructure to support early completion of Thar coal project.

Similarly, during his visit to Karachi on July 22 and 23, 2010, President Asif Ali Zardarim, in a special meeting on Thar coal had emphasised on the federal and provincial governments to expedite the work on infrastructure development projects relating to Thar coalfield to facilitate the upcoming coal-based power projects.

The infrastructure schemes, which are necessary for Thar coal project, are as follows: (i) construction of canal water carrier with capacity of 300 cusecs (Makhi Farash Link Canal Project, Chotiari Phase-II); (ii) construction of 50 cusecs drainage and wastewater effluent channel from mining area of Thar coalfield Block No.II; (iii) improvement and widening of road network from seaport Karachi to Thar coalfields (360 km); (iv) laying of transmission network up to Thar coalfields; and (v) establishment of broad gauge railway link up to Thar coalfields.

Details of the proposed schemes include construction of canal water carrier with capacity of 300 cusecs (Makhi Farash Link Canal Project, Chotiari Phase-II). The scope of Thar coal mining and power generation projects is to meet initial demand of 300 cusecs fresh canal water.

In this regard, Irrigation and Power Department has prepared a project for supply of canal water from Nara canal system. The project envisages construction of a water carrier. Thar coal water carrier will be constructed in two phases.

The first phase includes CC lining of Makhi Farash Link Canal from RD 0+000 to 304+000, construction of 100 cusecs CC linked channel from Farash regulator to Nabisar through Dhoro escape natural water way about 40 miles in length and further by providing two pumping pipelines of 4ft dia each with suitable pumps and intermediate reservoirs from Nabisar to Vajihar, about 31 miles in length, with carrying capacity of 100 cusecs discharge each, in order to support system with auxiliary arrangement.

As the natural contour limits the gravity flow with very mild gradient, it has been proposed to provide velocity booster (Persian wheels) at appropriate intervals in CC lined channel. The main reservoir at Nabisar Thar, which is a historical depression lake, having surface of about 202 acres, will be converted for retention. Further, the silt-free water will be pumped through proposed spiral steel pipelines.

It has also been proposed to construct a metalled road along the proposed CC lined channel, which will provide additional supporting strength to the embankment of CC channel in Dhoro Escape, and bifurcate the natural waterway and leave sufficient waterway to Dhoro ecology. In addition, this will also provide communication link to the adjoining settlements, and facilitate the monitoring/operational activities.

In second phase after completion of Makhi Farash Link canal project, the 200 cusecs CC lined channel will be constructed with same methodology of additional pumping pipelines arrangements. The project is planned to be completed in two years' time. The total cost of the project (PC-1) has been prepared only for construction of Phase-I, amounting to Rs 27.00 billion and is based on preliminary survey, design and cost estimated on market rates.

II) Effluent disposal from Thar coalfields: In order to initiate mining activity in Thar, there is need of appropriate sized effluent disposal system. It has been assessed by RWE that bottom aquifer will involve disposal and pumping of about 25-30 cusecs from a mine of size 6.5 mtpa. In addition, 5-7 cusecs of effluent shall also be generated by power plant of the size of 1000 mw. Thus, it is expected that Thar coalfields require a robust effluent disposal system for disposal of at least 50 cusecs of effluent.

For the purpose of construction of 50 cusecs drainage and wastewater effluent channel from mining area of Thar coalfields, the Irrigation and Power Department, Government of Sindh, has prepared a PC-II for feasibility study for construction of 50 cusecs drainage and wastewater effluent channel from mining area of Thar coalfields. The PC-II has been approved by the PDWP on 16th September, 2010. The proposed feasibility study under this PC-II would identify and confirm source of disposal for wastewater and effluent drainage to fulfill the requirements and the mechanics to dispose of the same to three sources/options available ie LBOD (Creek), Shakoor Dhandh and Rann of Katchh or any other possible source for Thar Coal power plants as well as to make a proposal if the maximum quantity of wastewater may be reused for irrigation purposes at Vajihar.

Sindh Irrigation & Drainage Authority (SIDA) has been engaged as consultants to prepare feasibility study and planning documents such as PC-I. The PC-I would be developed after completion of feasibility study ie within three months' time. It is anticipated that the project entails cost of Rs 12.75 billion. The PC-II is costing Rs 20.100 million.

III) Improvement and widening of road network from seaport Karachi to Thar coalfields (360 km): Thar coal mining will involve huge machinery. This huge machinery will have to be moved from seaport to coal mine sites. It is expected that the huge machinery such as shovels, trucks, loaders and dozers as huge as 13 metres, will be used in open pit mining process.

For transportation of huge mining machinery, the existing road network up to Thar coalfields requires upgradation and widening. In order to improve and widen the existing road network, the existing road will have to bear 70-ton bridges carrying capacity with a height clearance of minimum 3.2 metres and width of 7 metres.

The Government of Sindh, through Works and Services Department, has prepared a PC-I for improvement and widening of existing road network from seaport to Islamkot through Thatta-Sujawal, Badin-Nindo, Wango-Mithi, Islamkot-Thario Haelpota, having total distance of 360 km. The cost of this scheme is Rs 5 billion.

IV) Laying of transmission line up to Thar coalfieldsz: Keeping in view the possible evacuation of 10000 MW from Thar coalfield within next 5-10 years, NTDC with the support ADB funding has initiated a feasibility study for laying of transmission line up to Thar coalfields.

NTDC has hired consultant for the feasibility study for construction of about 1300 km transmission line, initially for dispersal of 2500-3000 MW power from the coal projects to upcountry load centres. The selection process has been completed and the report had been sent to ADB on October 3, 2009 for concurrence.

The present scope of the study, costing about $3.5 million, funded by ADB, originally covered imported coal plant. This is intended to be enhanced to also cover the dispersal of power from the proposed 1000 MW Thar coal plant. The process/configuration of transmission system (including line/grid/switching station) will actually cater for the evacuation of at least 10,000MW of power--it can also be replicated for an additional 10,000 MW.

The required transmission network along with the voltage level (HV DC or AC) would be decided, based on the outcome of the feasibility study, and the revised PC-1 will be prepared accordingly.

The timeline for completion of feasibility report is fixed as 12 months from the date of issuance of LoA. Ministry of Water and Power through NTDC has awarded preparation of feasibility work for laying of transmission lines to SNC Lavlin. During recent meetings with NTDC, the latter had communicated that SNC Lavlin is going to complete feasibility during November-December 2010. NTDC plans to submit PC-I based on feasibility by end of 2010. Total estimated funding required for laying of transmission line is approx $1.0 billion. Keeping in view the huge scale of funding required, Ministry of Water and Power has to expedite early preparation and approval of PC-I so that funds can be tapped from international funding agencies.

(V) Establishment of broad-gauge railway link up to Thar coalfield areas: Construction of rail link for the coalfields is essential. The Government of Sindh has approved PC-II for feasibility study for providing broad gauge railway link up to coalfield areas of Sindh at a cost of Rs 21.900 million. The feasibility study has been assigned to Pakistan Railway Advisory Consultancy Services (Pvt) Ltd (PRACS).
 
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Originally posted by Omar1984
After the discovery of the Thar Coal Field in Sindh, Pakistan has the 2nd largest coal reserves in the world. U.S.A. has the largest coal reserves in the world.
Well Russia given their huge size are also amongst the top countries in coal reserves...

This article i found in Geological Survey of Pakistan's website
Geological Survey of Pakistan

India does not have world's largest reserves(4th largest)...but we do have world's largest miner i.e. Coal India...

BTW Thar Desert has huge Gas reserves....Cairn India has a huge plant in Bikaner in Rajasthan......
 
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Please let us not be jumping with joy. At least members of this august column should try to keep every thing in proper perspective. Thar coal resrves are good but no "panacea" for our energy needs.

I found a good article in todays Jang written by Dr Abdul Qadir Khan.

Jang Group Online
 
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coalpowerplant608.jpg

The energy mix in of Pakistan shows only 9 per cent utilisation of coal out of which only 0.1 per cent is used for power generation. - AP Photo (File Photo)


As we talk of the energy crisis and the possible solutions to it, we need to understand the policies that govern the energy currently being used in Pakistan. The energy mix of Pakistan is no enigma. Primarily based on oil and gas to generate electricity, we simply do not utilise coal or focus on any other form of energy for power generation; and so, we have an alarming situation. There is over 40 per cent dependence on gas, while 30 per cent of all our power is acquired through oil. Majority of which, over 72 per cent is imported oil. This forces Pakistan to import over 300,000 bbl/day of oil.

Muhammad Saleem Sethi, Additional Secretary, Ministry of Finance, explaining the dependence on oil to the students of Public Policy at National Defence University, said that, “When oil prices peaked in at $147 a barrel, Pakistan’s finance ministry had kept funds for imports of oil in accordance with $80 a barrel. As a result, not only it had to re-allocate budget, but pay an increased price to keep the power plants running.”

In 2005, an energy plan was devised by the Government of Pakistan, which showed a heavy reliance on gas, an outcome of which is the Iran-Pakistan gas pipeline agreement. Due to increased dependence on gas and imported oil, the debt in the energy sector increased to $3.6 billion dollars in the period of 2005-2008, and no new power generation plant was initiated.

Furthermore, the energy mix in of Pakistan shows only 9 per cent utilisation of coal out of which only 0.1 per cent is used for power generation. In a comparison with other countries, Pakistan lags behind to a considerable degree. It is seen that coal is responsible for 72 per cent of China’s power needs, 56 per cent of Indian needs, where as the US utilises more than 50 per cent of coal in its power generation.

Globally, the share of coal in power generation is 38 per cent, compared to 0.1 per cent in Pakistan. Although, developed nations discourage power generation through coal, it should be noted that no developed nation which has this resource, had abandoned it as yet. In the past, industrialisation was started in England due to its coal reserves, and a number of English statesmen have termed it the ‘lifeline’ of the United Kingdom. Pakistan has been blessed by huge lignite coal reserves, and it is of imminent importance that the same be included in the energy mix of Pakistan. However, such an inclusion faces severe criticism from the eco-friendly post-Kyoto protocol world.

If we only take the cumulative savings into account, due to devaluation of the Pakistani currency and fluctuations in oil prices, the fuel replacement from oil to coal will save Pakistan $87 billion from one block of the Thar Coal fields alone till 2070. Cambridge Energy Research Associates estimates the Net Present Value of savings at Rs. 3.2 trillion over a period of 60 years. With these savings in view, the trade-off between environment and economy seems to be a viable option.

Pakistan is not among the great polluters of the world nor is it utilising its given resource that can easily make its energy secure in the long run. The trade-off is clearly feasible and in our favour. With newer methods of gasification of coal under-ground, even the said pollution can be lowered drastically, and the benefits of these huge reserves reaped for present and future security of our country. A chemical analysis of the given coal reserves shows that not only it is a moderate-good quality lignite coal deposit, but has a lot of moisture in it, further benefiting the gasification process. Being a non-renewable energy reserve, we also have to consider the amount of coal present in these deposits. Studies show that the deposits are enough to meet the energy requirements of Pakistan for at least the next 200 years.

Whether or not we will start the extraction in 200 years is a different debate altogether. Until and unless our policymakers realise the importance of stability, the suffering of the poor, and the merits of austerity, new projects will perhaps never see the light of day. Thar Coal reserves have been left untouched until recently, when a presidential order was given to start yet another committee on it – a committee, which too has not yielded any significant result due to the raging deluge that came down on our nation, drowning everything in its path.

Ajaz Ali Khan, Secretary to Sindh government, briefing about the amount of coal present in Pakistan said, “Total reserve is equivalent to 50 billion tones of oil (more than Iran and Saudi Arabia combined oil reserves) or over 2000 TCF of Gas (42 times greater than total gas reserves discovered in Pakistan so far).”

The outcomes and advantages of Thar Coal project are sustainable, is a relatively less expensive fuel, massive benefit to the economy, savings on foreign exchange, and employment generation. In May, 2007 the Asian Development Bank released a report which said; “Thar lignite once mined, is a useable fuel or carbon resource”.

On February 8, 2008, the President of Pakistan gave a green signal to once again study and initiate the Thar Coal Project for power generation. For the said purpose, Thar Coal Mining Company was initiated to provide coal for the Independent Power Plants (IPPs). This positive step has received a green signal a number of times in the past, now only if we can take the first step.

According to the research conducted by EMR in collaboration with he Petroleum Institute of Pakistan, the contribution to GDP in plants, products, services, employment, etc. would be in the range of $200 - $300 billion, which clearly exceeds the total GDP of Pakistan. Not only that but in July 2009, the World Bank team comprising Ekaterina N. Mikhaylova, Senior Project Officer Oil, Gas, Mining and Chemicals Department, Robert Murphy, a consultant of Oil, Gas, Mining Policy Division visited Thar Coal fields, it was estimated by further studies conducted that the coal deposits of the area have a very large content of water, around 40 per cent, as a result of which it will also help the local population.

Thar coal project will generate positive externalities such as creating hundreds of jobs, along with cumulative net savings, savings on valuable foreign exchange, and most importantly, energy generation and a balance in the future energy mix of Pakistan.

Policy level issues that are directly related to this project also include displacement and community issues of the local people, because there is no clear community welfare policy. Local government and people of Thar region would like to be in charge of this project and have a say in the final decision making so they not feel left out. Concerns of local people should be kept in mind; a detailed description of the project which outlines the benefits to the local community and people by creating infrastructure and jobs will help gather support for the project, and it can as a result be successfully initiated without much opposition.

Finally, one has to figure out that whether Thar coal reserves offer a positive long term solution for the energy crisis that has crippled the economy of Pakistan, or if other alternatives pose a better solution. There are a number of alternatives available to meet the increasing energy requirements of Pakistan. Besides the indigenous fuel of Thar coal, there are somewhat promising capabilities of Hydel, Wind and Solar Energy. Although, Pakistan has a considerable portion devoted to Hydel Power Generation, Wind and Solar Energy is almost entirely neglected.

It is not difficult to comprehend however, that developing Thar coal fields offer not only higher feasibility and political acceptance than many alternatives available, but it offers far higher and beneficial outcomes, advantages, and positive externalities. Through this project, the imbalance in the energy mix of Pakistan can be addressed, and so can the issue of energy security for the future, and a self-reliant economy that we so impatiently dream about.

Perhaps the crises that Pakistan is encircled in today will not allow any ground work to start in the near future, but there is a serious requirement for consideration of developing the neglected Thar coal fields. Today, all the great nations that stand tall have foundations that were once set on coal. It is about time that Pakistan realises its potential and builds for itself the same foundations, so that tomorrow it too can be a great nation through the gifts of its own land, rather than the crutches of international aid.
 
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The energy mix in of Pakistan shows only 9 per cent utilization of coal out of which only 0.1 per cent is used for power generation.

Im guessing the rest is sold
can somebody fill me in about that ?
 
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