Thar Coal Mine Expansion Adds 3.6 Million Tonnes of Annual Capacity
The Phase III expansion of the Thar Block-II coal mine has increased its annual capacity by 3.6 million tonnes, taking the total from 7.6 million to 11.2 million tonnes.
Sindh Chief Minister Murad Ali Shah and PPP Chairman Bilawal Bhutto Zardari inaugurated the expansion in Tharparkar on October 5. The project increases the mine’s capacity by approximately 47%, strengthening supplies of locally produced coal for electricity generation.
Expanded Supply for Lucky Electric
The additional mining capacity is intended to supply coal to Lucky Electric’s 660MW power plant, supporting its transition from imported fuel to domestic Thar coal.
With this addition, the power generation capacity supported by Block-II coal rises from 1,320MW to 1,980MW. These figures describe the capacity of the associated power plants; actual electricity production depends on their operation and fuel availability.
Greater use of domestic coal could help reduce exposure to international fuel prices and the foreign exchange required for imports.
Third Stage of Mine Development
The Sindh Engro Coal Mining Company began commercial operations at the mine in 2019 with an annual capacity of 3.8 million tonnes.
Phase II doubled that capacity to 7.6 million tonnes in 2022. The latest expansion adds another 3.6 million tonnes annually, bringing the total to 11.2 million tonnes.
Officials described Phase III as fully self-financed. The inauguration also included a coal drying unit, presented as Pakistan’s first facility of its kind.
Officials Project Fuel Cost Savings
Project officials estimate that the expansion could generate approximately Rs. 15 billion in annual power generation cost savings and reduce foreign exchange expenditure by around $220 million each year.
These are projected benefits rather than confirmed savings. Their eventual scale will depend on coal deliveries, power plant utilisation and the extent to which domestic fuel replaces imports.
The expansion marks another step in developing Thar’s coal resources as a domestic energy supply, with attention now turning to sustained production and delivery to the plants it supports.