The Phase III expansion of the Thar Block II coal mine in Sindh has increased annual production capacity from 7.6 million tons to 11.2 million tons, adding more locally produced coal for power generation.
Pakistan Peoples Party Chairman Bilawal Bhutto Zardari inaugurated the expansion on Monday, along with the country’s first coal drying unit, at a ceremony held at Thar Coal Block II.
Sindh Engro Coal Mining Company (SECMC) started commercial operations at Thar Block II in 2019 with an annual capacity of 3.8 million tons. Its second phase, completed in 2022, doubled capacity to 7.6 million tons.
The latest expansion adds another 3.6 million tons of annual production, making it the mine’s third expansion in seven years. Officials said the project was completed entirely through self-financing.
The additional coal will supply Lucky Electric Power Company’s 660-megawatt power plant. This will increase total electricity generation supported by Thar Block II coal from 1,320 MW to 1,980 MW, enough to provide electricity to about 4.5 million households daily.
Officials said power generated at the mine mouth costs about $3.75 per MMBtu, making it one of the cheapest energy sources in the country and nearly three times cheaper than imported coal. The expansion is expected to reduce power generation costs by around Rs. 15 billion annually and save about $220 million in foreign exchange each year. Cumulative foreign exchange savings since Thar Block II began operations have already exceeded $1.7 billion.
SECMC CEO Amir Iqbal said the Thar project was contributing to Pakistan’s energy security and economic growth, while describing the development as an example of public-private partnership.
Sindh Chief Minister Murad Ali Shah said the project represented the continuation of a decades-old effort to develop Thar’s coal resources. He also paid tribute to the workers, engineers and other stakeholders involved in the project.
Bilawal also congratulated SECMC on the expansion and said the Thar mine now ranks among the top four percent of mines globally.
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