www.sindhcoal.gos.pk
Vision
To position Sindh as the power house of the region
MissionTo develop Thar Coal as a major source of power generation for En-
ergy & Economic Security of the country and as a Hub of Petro Chemi-
cal Industry
GoalTo generate at least 10,000 MW by 2020
We offer
• Huge proven reserves with authentic data
• Higher returns for investors
• Business friendly policies & environment
• Excellent incentives, concessions & protections
ii
Thar Coal – The Most Attractive Investment Opportunity 01
Quality of Coal at Thar 02
Investment Status in Thar Coalfield 03
Fiscal Incentives for Development of Indigenous Coal Resources 04
Investment Opportunities in Thar 05
Procedure for Allocation of Blocks 05
Environment & Social Studies 06
Water Master Plan 06
Thar Coal Resources at a Glance 07
Thar Coal & Energy Board - its role & functions 08
Composition of Thar Coal & Energy Board 09
Thar Coalfield Blocks Layout 10
Infrastructure available at Thar 11
Infrastructure planned at Thar 12
Table of Contents
iii
Thar Coal – the most attractive Investment Opportunity
1. World’s biggest lignite reserves
Pakistan’s coal resource potential is estimated to be around 186 billion
tonnes out of which 175 billion tonnes are found in Thar — the largest lig-
nite deposit in the world. Thar Coalfield is located 360 km from Karachi
port in the south eastern arid zone region of Pakistan which is one of the
most peaceful & harmonious area of the country. Thar Coal resources
have an estimated potential of generating 100,000 MW of electricity for
a period of 300 years; thus, providing an opportunity for large scale min-
ing & power generation over a long period of time.
2. Central part of future Energy Mix in Pakistan
To address the persistent energy gap, the large indigenous coal (lignite)
resources at Thar in Sindh Province form an integral part of Pakistan’s
long term energy security strategy. Thar resource has a very good po-
tential to be a viable option for providing dependable indigenous source
of energy. Development of Thar is envisioned to emerge through a part-
nership of government and the private sector, wherein the private sector
would assume investment risk subject to viable commercial market con-
ditions and the government would provide the enabling environment nec-
essary to facilitate such investments.
Thar Coal - Means to Energy Security in Pakistan
1
Thar lignite has a
stripping ratio of 6:1
and heating value of
5,000 to 5,500 Btu/lb
which is better than
many lignite re-
sources being suc-
cessfully used for
mining and power
generation:
• India’s Neyvelli lignite has a stripping ratio of 7:1 and heating value
of 5,200 Btu/lb. Total generation based on Neyvelli lignite is more
than 2,700 MWs.
• Hungary’s lignite has stripping ratio of 9:1 and heating value of 3035
Btu/Lb and power generation above 1800 MWs.
• Germany’s Rhineland lignite having stripping ratio of 4.9:1 and heat-
ing value of 3830 Btu/lb and is fueling power generation of more than
10,200 MW.
Quality of Coal at Thar
Deposit Stripping Ratio (m³ : t) Heating Value (MJ/kg)
Thar 6.6 : 1 11.6
Kosovo 1 : 1 7.8
Rhenish Area, Germany 4.9 : 1 8.9
Hambach, Germany 6.3 : 1 10.5
Hungary 9 : 1 7.1
Greece 10:1 5.02
Comparison of Thar with Other International Mines
2
GoS has developed 12 blocks so far covering around 1000 sq km out
of 9100 sq km. The status of on-going Projects is given below:
Status of Projects at Thar Coalfield
Thar Coal Blocks Status / Timelines
Investment Status in Thar Coal Field
3
Block-I
Global Mining Company of China
Open cast Mining of 10 mtpa 900 MW
Coal supply to local thermal plants and
cement industry after briquetting
Block-II
Sindh Engro Coal Mining Company
(JV: 40% GoS; 60% Engro)
Open cast mine of 6.5 mtpa & 1200MW
Block-V
UCG Project
Under Ground Coal Gasification Project
2X50 MW IGCC Power Plant Planned
Block-VI
Oracle Coalfields, PLC (UK)
Open cast mine of 5 mtpa
MoU signed with KESC for 300MW
Bankable Feasibility completed March, 2012
Mining Lease issued May, 2012
Coal Production to start by 2015
Power Generation by 2015-16
Bankable Feasibility completed 31st Aug. 2010
Mining Lease issued August, 2011
Project financing activity continued.
Chinese Funding through JEWG is
being solicited
36 bore holes have been drilled.
Test Burn done in Dec. 2011
Power Plant of 8-10 MW is being
established.
Detailed Feasibility Completed Oct. 2011
Mining Lease issued May 2012
Start of Mine development by mid-2013
The following set of in-
centives are available to
facilitate investors for
development of indige-
nous Coal resources of
Sindh for Mining and
Power Generation.
Special EconomicZone• Thar Coalfield is declared has been declared as Special Economic
Zone and all Development Project in Thar region (including coal min-
ing and power generation) have been declared as ‘Projects of Na-
tional Security’.
Guaranteed Rate of Return• 20% (dollar-based) IRR is guaranteed to firms which achieve Finan-
cial Close before 31st December, 2015 for Mining & Power Genera-
tion based on indigenous coal and additional 0.5% i.e. 20.5% IRR for
firms which achieve Financial Close by 31st December, 2014.
Exemptions/concessions• Zero percent customs duties on import of coal mining equipment and
machinery including vehicles for site use.
• Exemption on withholding tax to shareholders on dividend for initial
30 years.
• Exemption on withholding tax on procurement of goods and services
during project construction and operations.
• Exemption for 30 years on other levies including Special Excise Duty,
Federal Excise Duty, WPPF and WWF.
Fiscal Incentives for Developmentof Indigenous Coal Resources
4
Streams of Investment:
The investors may enter into Joint Venture with existing Project Devel-
opers or may opt for acquiring new Blocks for any of the following busi-
ness opportunities.
1. Coal Mining
2. Integrated Coal & Power Generation Project
3. Mine Mouth Power Project
4. Underground Coal Gasification
5. Coal to liquid Technologies
6. Briquetting- Dried lignite from Thar can be transported and utilized by
retrofitted Thermal Power Plants and industry
7. Any other utilization which may be proposed by project sponsors
Procedure for allocation of Blocks
Sindh Mining Concession Rules - 2002 spell out concession award pro-
cedure which is also available at our website www.sindhcoal.gos.pk. The
successful applicant will get Exploration License after signing an MOU
with Sindh Coal Authority. The Exploration license is generally granted for
bankable feasibility studies (BFS) for a period of one year extendable on
valid grounds. The license holder shall be required to submit reports on
quarterly basis. The exploration license granted can be cancelled if con-
ditions of MoU or Exploration License are not fulfilled. After successful
completion of feasibility report, the Exploration License shall be con-
verted into Mining Lease in accordance with the provisions of Sindh Min-
ing Concession Rules 2002.
Investors are expected to submit credible financing plans for the project
including debt/equity financing.
Sindh Coal Authority shall provide all available data of the exploratory
work conducted in a Block to the holder of Exploration License free of
charge.
The investors are also expected to provide firm timelines with three
monthly milestone plan. Preference will be given to those who offer nar-
row timelines leading to early completion of BFS and project execution
phase.
Investment Opportunities in Thar Coal include:
5
Environment and Social Studies
All environmental standards as enunciated in the Pakistan Environmen-
tal Protection Agency (PEPA) Act 1997, relating to environmental pro-
tection, environmental impact and social soundness assessment, shall
be ensured. The Government of Sindh is also conducting Environmen-
tal and Social Studies, Land Use Plan including Resettlement Frame-
work for Thar Coalfields.
Water Master Plan
The policy of the Government to attract foreign investments in Thar Coal
Sector for allocation of various Blocks has enhanced the foreign interest
in Thar Coalfield resulting increased activities of coal mining and power
generation companies, which necessitated the placement of an optimal
Water Master Plan. In view of peculiar hydrological and hydro-geological
conditions of Thar, the early formulation of Water Master Plan is essen-
tial for hydro-related activities, to regulate all project developers and also
to facilitate development of Thar Coalfield. Hence, the Coal and Energy
Development Department is preparing a comprehensive Water Master
Plan for Thar Coal fields including hydro geological, water supply and
Wastewater Management Studies.
6
7
Thar Coal Resources at a Glance
Block Area Sq. Total Moisture Ash Vol. Sulphur Heating Value Fixed Carbon
Km Reserves % % matter % % (As Received) %
bn ton Btu/lb
I 122 3.56 43.13 6.53 30.11 0.92 6398 20.11
II 79.6 2.24 47.89 7.37 25.15 1.12 5008 19.68
III-A 99.5 2.00 45.41 6.14 28.51 1.12 6268 19.56
III-B 76.8 1.45 47.72 9.30 25.49 1.15 4808 16.79
IV 82 2.47 43.24 6.56 29.04 1.20 5971 21.13
V 63.5 1.39 46.82 8.92 30.24 1.20 5682 13.26
VI 66.1 1.65 46.80 5.89 29.34 0.90 5727 16.6
VII 100 2.17 48.27 8.03 25.30 1.16 5440 25.30
VIII 100 3.03 49.57 7.78 24.32 1.44 5302 18.10
IX 100 2.86 48.60 5.92 29.03 0.96 5561 15.73
X 100 2.87 48.99 6.35 30.79 1.17 4840 13.54
XI 101 1.61 49.97 8.07 24.16 1.61 5228 17.26
XII 100 2.34 50.82 5.71 25.00 1.11 5459 17.26
Note: Blocks VII to XII are available for allocation to Project Developers.
In order to fast track the development of coal, especially the largest coal
resources of Thar, one stop decision taking body Thar Coal and Energy
Board (TCEB) was established under the Chief Executive of the Province
with representation from Provincial and Federal Governments. Besides
this, the present Government also established Coal and Energy Devel-
opment Department in April 2009 mainly to focus on the exploration and
development of coal resources of the Province. Thar Coal & Energy
Board acts as one stop organization on behalf of all Ministries, Depart-
ments and agencies of the Government of Pakistan/ Sindh in the matters
relating to approval of the Projects for Coal Mining in Thar and for Coal-
fired Power generation plants or for other uses of Thar Coal. The primary
role of the Board is to facilitate and coordinate with domestic, foreign and
international institutions for speedy development of Thar Coal.
All projects of coal mining, power generation and other uses, in Thar
Coalfield including infrastructure projects are being coordinated and mon-
itored directly by the TCEB. All relevant departments are being coordi-
nated for expeditious completion of the infrastructure projects.
Thar Coal and Energy Board
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1. Chief Minister Sindh Chairman
2. Federal Minister for Water & Power Vice-Chairman
3. Federal Minister for Finance Member
4. Federal Minister for Law and Justice Member
5. Deputy Chairman, Planning Commission Member
6. Provincial Minister (Irrigation ) Member
7. Provincial Minister (Revenue) Member
8. Provincial Minister (Finance) Member
9. Woman MNA from Thar Region Member
10. Federal Secretary, Ministry of Water and Power Member
11. Chief Secretary, Govt. of Sindh Member
12. Secretary, Coal & Energy Development Dept. Member
13. One eminent Person Member
14. Managing Director, TCEB Member/Secretary
Composition of Thar Coal & Energy Board
9
ROAD NETWORK70 tonnes load carrying capacity metalled road is
available up to Coal field area.
COMMUNICATION Telephone & Internet communication through
Optic fiber cable is available up to Thar Coalfield
area.
DRINKING WATER Reverse Osmosis Plants in Thar are available for
provision of potable water to the inhabitants of
Thar as well as project staff free of cost.
RESCUE STATIONRescue Station in coal mining area at Thar coal-
field covering an area of 8,200 sq. ft. has been
constructed.
LIBRARY A Coal library containing documents having
relevent information on Coal is situated at office
of Sindh Coal Authority.
THAR LODGEThar Lodge at Islamkot with 20-bedded accom-
modation to facilitate foreign and local investors
has been constructed.
Infrastructure Available at Thar
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TRANSMISSION LINEThe NTDC is executing two schemes for power evac-
uation from Thar:-
Phase – I: Transmission Line from Thar Coalfield to
Matiari
Phase – II: Transmission Line from Matiari to Rahim
Yar Khan
AIRPORTThe Civil Aviation Authority is executing the work of
construction of Thar Airport at a distance of 8-10 kms
from Thar Coalfield which is expected to be opera-
tional by December 2013.
PROVISION OF HEAVY DUTY ROADFor improvement of Road Network following 3
Schemes are in pipeline:
• From Seaport Karachi to Wango More via Thatta,
Badin (200 km)
• From Wango More to Thar Coalfield (135 km)
• From Hyderabad to Thar Coalfield via MPK, Digri,
Noukot, Mithi
(155 km)
PROVISION OF WATER The GoS is executing schemes of supply of 100
cusecs treated water from Left Bank Outfall Drain to
Thar Coalfield.
EFFLUENT DISPOSALThe GoS is executing a scheme of constructing 50
cusecs mine water drainage channel from Thar
Coalfield which will be completed by Dec, 2013.
RAILWAY LINKPRACS has prepared feasibility for broad gauge rail
link up to Islamkot.
Infrastructure Planned in Progress at Thar
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