ThalNova Power Thar Ltd Reaches Financial Close

The Government of Pakistan has notified the achievement of financial close by ThalNova Power Thar Private Limited (TNPTL), an associated company of Thal Limited, on September 30th, 2020, according to a letter submitted to the Pakistan Stock Exchange (PSX) by the company.

TNPTL is currently under construction at Thar Coal Block II and is scheduled to achieve commercial operations in 2022.

TNPTL was incorporated in April 2016 in a joint venture between Thal Limited, Novatex Limited, Descon Engineering Limited, and China Machinery Engineering Corporation. Hub Power Holdings Limited joined the consortium in 2018 and undertook management control of TNPTL whereby construction work commenced at the site from Sponsor equity.

The company is engaged in setting up 330MW mine-mouth lignite-fired power plant at Thar Block II and is one of the first power projects to utilize the local lignite at Thar Coal Block II for power generation.

The project is being financed through consortium of Chinese and Pakistani banks which are led by China Development Bank and Habib Bank Limited (HBL) respectively. Sindh Engro Coal Mining Company (SECMC), Pakistan’s first open pit mine located in Block II and another associated company of Thal Limited, achieved financial close of Phase II of mine expansion to 7.6 mtpa on December 31, 2019.

SECMC and TNPTL have entered into a coal supply agreement for the supply of lignite coal to TNPTL from Block II. ThalNova is targeting to achieve commercial operations in the second half of the calendar year 2022.