The Sindh Engro Coal Mining Company (SECMC) has accomplished a production benchmark of 10 million tons of coal.
After starting its commercial operations in June 2019, the public-private entity has successfully achieved this coal production milestone in less than three years.
Record coal production over the last two and a half years at SECMC has resulted in the generation of over 10,000 GwHs of power that has been provided to the national grid. Furthermore, the company’s record coal output and energy generation using Thar’s domestic reserves has benefited the national economy by saving $210 million in import substitution during the same time period.
SECMC’s CEO, Amir Iqbal, remarked, “The 10-million coal production mark is a commendable achievement considering the constant fluctuation and vulnerability in international coal prices”.
He added that Thar coal is the ideal resource that can help Pakistan’s economy by reducing the current account deficit and indigenizing the country’s current energy mix that is heavily dependant on imported fuels. Moreover, the second phase of the SECMC mine is now under construction, and will raise the production of coal to 7.6 million tons per year with a total power generation of 1320 MWs.
Consequently, the Phase III expansion is expected to cost around $100 million, and will allow Thar Block-II to produce 12.2 million tonnes of coal yearly for the next three decades. The SECMC intends to complete this expansion by June 2023 to lower the cost of coal to under $30 per ton and maintain Pakistan’s economic stability and energy security.
This development will help Pakistan save $420 million per year through import substitution, as well as Rs. 74 billion in the circular debt per annum.
