JV Project between GOS-Engro Group Block II



    BLOCK-II: Sindh Engro Coal Mining Company

  • Bankable Feasibility Study (BFS) for 6.5 Mt/a Mining Project was completed in 2010 by internationally renowned Consultants (Sinocoal – China, RWE – Germany, Hagler Baily – Pakistan, SRK – UK)
  • Technical committee of SCA reviewed and approved the BFS in 2010 – Mining Lease granted in 2011
  • Completion schedule of 6.5Mt/a Mine and 1200 MW Power Plant was 4 years from Financial Close
  • SECMC developed a revised execution strategy adopting phased approach for development of 6.5 Mt/a Mine where –
  • – Phase I – 3.8Mt/a mine capacity in 42 months
    – Phase II – 6.5Mt/a mine capacity in 60 months

  • Technical committee of Sindh Coal Authority reviewed and approved the revised execution strategy for 3.8 Mt/a Mine on 2nd Jan 2015
  • Thar Coal Mining Project is covered with a Sovereign Guarantee of USD 700 Million provided by Govt. of Pakistan
  • The phased approached has provided the following benefits:
  • – Brought the Mine and Power Projects within GOP/GoS desired timeline and has enabled SECMC in attracting multiple sponsors other than GoS & Engro
    – High level Technical Committee of NEA has reviewed and approved the phased approach and included it in the CPEC high priority fast track projects list thus making financing possible

    Current Status:

  • Phase-1 Projects of 3.8Mtpa mine and 2 x 330MW Power Projects has achieved financial close.
  • Power Project is expected to start producing electricity as per CPEC timelines of 2018-19.
  • Initial Mining Work has already started at site and it is expected that sponsors shall achieve COD at least 4 months ahead of schedule.
  • TCEB has also recommended to MOWP for inclusion of Phase-II of the project i.e,2X330 MW Project in the Early Harvest Projects under China-Pakistan Economic Corridor.
  • Contract Stage Coal Tariff is approved by TCEB.
  • Financing Plan:

  • Financial Close is achieved.
  • Rs. 50 bn Agreements for Local Financing has signed.
  • – Project Cost (Mine): US$ 0.85 bn
    – Project Cost (Power): US$ 1.1 bn

    Land Acquisition & Resettlement:

  • For initial 3.5 years of construction and 4 years of O&M period, SECMC requires possession of approx. 6,000 acres. Out of this 6,000 acres approx. 3,842 acres is private and the rest is government land
  • SECMC has applied for possession of 3842 acres of private land and on 19th May 2014 the land was provided – SECMC has paid the requisite amount to GoS for this approx. Rs 450 million from equity
  • SECMC has already initiated process for acquisition of additional 8,000 acres of land.
  • In total 14,000 acres of land should be sufficient for 30 years of mining operations (for up to 7.6 MTPA)
  • Mining Plan for next 30 years would affect two villages, namely, Sehnri Dars and Thariyo Halepoto and both will have to be relocated. Relocation of both villages will be carried out in two phases:
  • – Phase I, Sehnri Dars will be relocated within the 3.5 years post FC – the cost of this relocation has been built into the project cost and granted under the coal tariff. Based on the mine plan of 3.8 MTPA the mine will reach Senhri Dars in 8 years
    – Phase II ,Thariyo Halepoto will be relocated after next 8 years post FC – the cost of this relocation is built into the operational cost as per tariff- Based on the mine plan of 3.8 MTPA the mine will reach Thariyo Halepoto in 16 year

  • Resettlement Action Plan for SECMC Block II has been approved by Energy Department, Government of Sindh on 23rd April 2015

    SECMC Overall Project Plan:
    SECMC will execute the project in three phases:
    Phase I:
    Mining: 3.8 Mt/a
    Power: 2 x 330 MW
    Technology: Sub Critical
    Construction Time: 42 months
    Company responsible for setting up the power plant is Engro Powergen Thal Ltd

    Phase II
    Mining: 7.6 Mt/a
    Power: 2 x 330 MW
    Technology: Sub Critical
    SECMC to provide coal for further two power plants in addition to its own
    Mine to be further expanded to cater 7.6 MT/a
    Thal & Hubco have signed an options agreement for coal

    Subsequent Phases
    Mining: 22 MT/a
    Power: 4 x 660 MW
    Technology: Super Critical
    Mine to be established to its potential
    Setup additional four power plants of 660 MW
    Structuring and other technical will be done after the construction of Phase I