Work on Thar coal project likely to start within nine months

The Shinuha Group of China has pledged to try its best to start the coal mine work under $ 1 billion Thar coal project within 9 months after getting approval from the Chinese government, most likely in September 2005, but not later than November 2005.
The Unit-I of the power plant would be put into commercial operation in 46 months and Unit-II, six months later.
This was stated by Sindh Minister for Mines and Mineral Development Irfanullah Khan Marwat on his return here from China on Saturday.
He said the Shinuha Group requested a concession period of 25 years instead of 30 years.
Marwat said the company was to hand over the operation of power plant after 25 years "but we have requested" that they should continue it for 30 years.
Meanwhile, he said, the Pakistani side would provide a whole package of standard agreements documentation to be signed in this project by the end of this year.
The Shinuha Group will do its best to complete the feasibility study report by February 2005 and submitted to Pakistani side as soon as the project will be approved by the Chinese government.
Marwat said that of the total cost of $ 1 billion, $ 455 million will be spent on mining side and rest on the power side.
He said that under the agreement, Wapda would lay the 500kv line from power station to the national grid, Jamshoro.
He said Pakistan will only pay power rates for 30 years. However, the rates will be decided by the Thar Task Force headed by the Prime Minister.
The minister told a questioner that the infrastructure for the mining side will be raised by Pakistani side for which the federal government has provided one billion rupees and a matching amount by the provincial government. He said the road from Jamshoro to project site via Thatta has been upgraded and widened to facilitate the movement of several thousand tons of machinery from China.
He said that the German company which has prepared the bankable study of Thar Coal, will give a presentation during the current month.
He said that most labour will be recruited from the locals while their training will be carried out by Chinese.