Government is formulating National Coal Policy to make Pakistan competitively attractive for investment in coal mining. Sources of Ministry of Petroleum and Natural Resources stated that under this Policy government would offer an attractive package to foreign investors and yield close coordination between federal and provincial governments as well as concerned institutions.
According to official sources the feasibility study is being undertaken by Ministry of Petroleum and Natural Resources to ascertain techno-economic viability of Thar Coal gasification and extraction of chemicals is expected to be completed. It is expected that work to develop a mine of 6 million tons per annum will also be started.
Production of coal during 2006-07 is 5.1 million tons per annum as compared to target of 5.2 million tons per annum showing 98 percent achievement. In addition, the feasibility study is also being undertaken by Sui Northern Gas Pipeline Limited (SNGPL) for setting up a pilot coal gasification plant at Bhakkar.
The project "Feasibility Study on Gasification of Thar Coal District Tharparkar, Sindh" is under execution to ascertain viability of gasification of Thar Coal. The report of Phase I-A has been completed. The laboratory study has shown that Thar Coal is feasible for gasification. The next phase 1-B is expected to be completed in the first quarter of 2007-08.
The current coal mining techniques in the country are rudimentary; not even a single coalmine is mechanised. To enhance the share of coal in primary energy mix, Thar Coal Mining Company (TCMC) has been established.
The prime objective of the company is to develop 5-6 million tons per annum coalmine at Thar Coal Field with the help of international well reputed firms/consultants.
Thar coalfield in the Sindh province has coal resources estimated at 175 billion tons. Due to high cost of imported energy government has decided to enhance the share of coal in the over all energy mix from 5 percent to 19 percent by 2030.
Energy Security Action Plan has set a target of generating 20,000 MW power from coal by 2030 and 50 percent by 2050. The total national coal production from operational coalmines increased by 6.5 percent from 4.6 millions ton in 2005-06 to 4.9 million ton in 2006-07. Over 80 percent of coal was consumed by the brick kiln industry thus reducing the supply available for power generation.
Approximately 80 percent of cement industry has also switched over to indigenous coal from furnace oil that has saved considerable foreign exchange being spent on the import of furnace oil. The conversion of cement industry from furnace oil to coal has generated a demand for 2.5 - 3.0 million tons coal per annum.
To ascertain commercial viability of mining coal from Thar, German consultant M/s Rheinbraun Engineering has completed a mining feasibility on a specific block in Thar coalfield. The same block has been assigned to an international firm for commissioning of integrated coal mining and 1,000 MW power generation project.
Moreover, a local group has been assigned a block in Thar coalfield for conducting feasibility study for integrated coal mining and commissioning two 250 MW coal fired power-generating plants. Government has also decided to establish a coal mining company for harnessing Thar coal resource.
As a part of promotional activities to increase share of coal, the Government of Sindh has leased out a coal block to M/s Fatteh Group of Hyderabad to commission a coal-based power plant of 250 MW in Lakhra coalfield.
Government has signed an agreement with Chinese company M/s China National Chemical Engineering Group Corporation (CNCEC) to conduct feasibility study on a coal block in Sonda Jerrick coalfields in Sindh province for integrated mining project of one million ton and a 250 MW coal based power plant.
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