PR10 Nov 2011 08:44
Thar coalfield development
Javed Mirza
Thursday, November 10, 2011
KARACHI: Sindh Carbon Energy Limited, an 80 percent-owned subsidiary of Oracle Coalfields, has submitted an application for a 30-year mining lease, with a 30-year extension, for the company’s Thar coalfield project.
The mining lease would give the company full mining concession status and would demonstrate the support of the Sindh government for the project, it said in a statement. An official of Oracle Coalfields told The News recently that mining would start by 2012, if investment arrangements were finalised and all went well with the government of ****stan.
Oracle Coalfields is making progress with its key Block-VI lignite Thar coalfield in Sindh. More than 6,000m of drilling was carried out at Block-VI by the company between August 2010 and February 2011 as part of a field work programme to support definitive feasibility study (DFS) of the area.
Early indications are encouraging, suggesting Block-VI holds a 1.4 billion tonne resource with 371 million tonnes of reserves, the company says. Sources said Oracle might begin producing coal there by 2014, with the southern part of Block VI, known as Phase I, considered to be the most suitable for the initial phase of open pit mining.
Oracle Coalfields is also very keen on supplying coal for power generation. It signed a memorandum of understanding (MoU) with Karachi Electric Supply Company (KESC) in December 2009, under which they agreed to collaborate for developing an initial 300MW mine-mouth power plant to be supplied with lignite coal from Block-VI. For long term contracting for Thar output, Oracle Coalfields secured a potential off-take deal with Lucky Cement, in January 2010, whereby Oracle Coalfields will supply its kilns with coal as it develops the Block VI project into a mine.
An MoU between Sindh Carbon Energy Limited and Mines & Minerals Department, Government of Sindh, was signed in November 2007 for exploration and development of Block VI, Thar Coalfield. Subsequently an Exploration Licence was issued to SCEL.
It may be mentioned here that the government has decided not to go for a cheaper and longer-term initiative to produce electricity by denying funds to the Thar Coal Underground Gasification (TCUG) project.
The government allocated a mere Rs2.5 million in 2010 for the project being taken care of by leading nuclear scientist and member Planning Commission, Dr Samar Mubarakmand. In the new Public Sector Development Programme, the amount earmarked for this project is hardly anything, in view of the total cost of Rs126.649 million. Up to June 2011, the amount released by the government stood at Rs20 million.
http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=76645&Cat=3
Seems this is still very much under peoples radars...