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Engro Approves Expansion of Thar Coal Block Ii Mine

The Sindh Engro Coal Mining Company (SECMC) board has approved the extension of Thar Coal Block II Mine to Phase III, which will produce 12.2 million tonnes per year. This development will decrease the mine’s coal price to 27 USD per tonne. According to an official announcement, SECMC is anticipated to conclude this expansion by June 2023.

Coal from SECMC Block II, priced at $27 per tonne, will become the cheapest fuel source in the country, ensuring economic stability and energy security. It will enable Pakistan to save USD 420 million per year in foreign exchange savings. In addition, this development of SECMC’s Block II mine will result in a yearly decrease of Rs.74 billion in circular debt.

This extension project is anticipated to cost $93 million and will allow Thar Block II to produce a sustainable supply of 12.2 million tonnes of coal per year for the next 30 years. SECMC’s current yearly production of 3.8 million tonnes has been used to generate 660 MW of energy since the company’s 2019 inception.

Read: How to File Income Tax Returns in Pakistan?

In its second phase, which is currently under construction and projected to be completed by mid-2022, SECMC’s production will expand to 7.6 million tonnes per year, allowing for a total power generation capacity of 1,320MW.

With the clearance of phase III and the following fall in Thar coal prices as a direct result of economies of scale, the Thar dream is poised to positively affect Pakistan’s economy. These alternatives can save billions of dollars by lowering imports of coal, RLNG, and other petrochemical products.

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