Following the extraction of first shovel of lignite coal in Thar Block 1 earlier this week, Sino Sindh Resources (Pvt) Limited (SSRL) has announced that the development will go a long way in solving Pakistan’s long-standing energy crisis.
On January 31, 2022, the first shovel of lignite coal was extracted at the coal pit of Block 1 in the Thar coalfields near Islamkot. Block 1 is Pakistan’s largest coal mine with reserves of over 3 billion tons (or over 5 billion barrels of crude oil equivalent) with annual output of 7.8 million tons per annum in just the first phase alone. Block 1 is owned and operated by SSRL, whose majority shareholder is Shanghai Electric Group.
“It’s a huge step forward. This first shovel of coal will go a long way towards solving energy crisis, employment generation and allied developments resulting in commercial and other economic activities in Thar region,commented Mr. Li Jigen, Chief Executive Officer of SSRL.
“The development of indigenous resource base at Thar will go a long way towards Pakistan achieving its long cherished goal of energy security and economic security and sovereignty.”
The Thar coal project is indeed a game changer.
Thar coal can be used in power generation at mine mouth plus used to substitute imported coal and also be used to produce all manner of chemicals which Pakistan is currently importing.
“The vision of successive Pakistan governments and the unflinching support of our Chinese leadership and brothers has now made the dream of Thar into a reality,” Mr Ligen said.
Thar Block 1 is classified as an “Early Harvest Project – EHP” under the China Pakistan Economic Corridor (CPEC) which is a flagship project of China’s historic Belt and Road Initiative (BRI) to bring unparalleled levels of infrastructure and development to countries falling under the BRI.
SSRL received allocation of Thar–Coal Block 1 to develop open-pit coal mine on September 19, 2011.
On May 24, 2012, SSRL was granted mining lease and project was included in Joint Energy Working Group (JEWG) by government of Pakistan & Government of China. As soon as both the governments officially announced CPEC in 2013, the Thar-Coal Block 1 project was included in CPEC as a part of Early Harvest programme. After becoming part of EHP of CPEC energy projects agreed between Government of Pakistan and China, SSRL was fortunate to receive all-round support from the governments of Pakistan and China as well as from government of Sindh. After back to back meetings between SSRL and Shanghai Electric group and Government of Sindh Energy Department, on January 23, 2019 first excavation started for development of the largest open-pit Coal mine in Block 1. Financial close for the project was achieved on December 31, 2019. Soon after the first excavation SSRL management started importing mining equipment from China and by July 2020 all the required equipment was at project site. After arrival of machinery SSRL management and its sub-contractors worked in full capacity day and night despite all the challenges (COVID-19 Pandemic, hot weather, dewatering, etc) on January 31, 2022, the first layer of coal was explored in extremely good condition.
This achievement was only achievable after joint and well-coordinated efforts of our EPC contractors, SSRL engineering/management team and all other employees at project site.
