KARACHI, July 14: A Chinese mining firm said on Saturday that it would begin mine development at a Thar Coalfield block in October this year, producing coal in commercial quantities through open pit mining by the first quarter of 2015.

This was stated by director of Global Mining of China Sheharyar Chishti while giving a progress update on the firm’s coal mining project at Block-I of the coalfield at a Thar Coal and Energy Board meeting presided over by Sindh Chief Minister Syed Qaim Ali Shah.

The chief executive officer of Oracle Coalfields, UK, Shahruk Khan assured the meeting that his company would start mine development in the first quarter of 2013 and coal production by 2014.

Briefing the meeting on the present status of their project at Block-VI, he said pre-development ground activities had already been started. He said Oracle Coalfields (UK) had signed a ‘joint development agreement’ with the Karachi Electric Supply Company on June 25 for establishing a 300-megawatt power plant in the first phase, which would be subsequently increased to 1,100MW.

He said work on community and social responsibility had also been planned to begin by August 2012, which would be part of long-term sustainable development for local communities and include job creation and training for local people, establishing a medical centre, provision of clean water and electricity to local communities and veterinary services.

Secretary for Coal and Energy Development Department Muhammad Sohail Rajput said the Sindh government was giving a high priority to the infrastructure development required for coal mining and power generation projects at Thar.

He said the government of Sindh had allocated Rs8.5 billion in the current financial year for schemes of improvement of roads, water supply, disposal of waste water from Thar Coalfield and construction of an airport.

He said the ministry of water and power was pursuing the policy of conversion of oil-based power plants, under the independent power producers and power generating companies, to imported coal. These retrofitted plants would be gradually shifted from imported coal to Thar Coal when it would be available.

Secretary for Water and Power Zafar Mehmood said the government would issue a policy guideline to all stakeholders and a policy would be formulated so that the retrofitting of oil-based power plants was done in such a manner that those plants were also compatible with the specifications of Thar Coal.

Shahid Sattar of the Planning Commission informed the meeting that a Thar-Matiari transmission line project was very critical for development of Thar Coal and assured of full support of the PC in that regard. He said three project sponsors were working in blocks I, II and VI of Thar Coalfield and they could not achieve financial close until the work of transmission line was contracted out.

Dr Samar Mubarakmand, a member of the Planning Commission, also gave an update on the underground coal gasification pilot project at Block-V.

He said test burn was ignited on Dec 11, 2011 and now syngas was being produced, which could support an 8MW to 10MW power plant. The Planning Commission had decided to provide funding for an 8MW to10MW power plant during the current financial year.

Sindh Chief Minister Syed Qaim Ali Shah said the government was fully committed to development of Thar Coal, which had the potential of turning the country's economy around.

He said Thar coal resources could be used for power generation, chemical production and other purposes and had the potential to provide energy security to the country. He stressed that the work on the project be accelerated for the benefit of the people.

The chief minister also constituted a committee of consultants who would submit a report for the Left Bank Outfall Drainage water desalination as early as possible.

The meeting was attended among others by Sindh ministers Jam Saifullah Dharejo, Syed Murad Ali Shah and Sharjeel Enam Memon, chairman of Sindh Board of Investment Zubair Motiwala and CEO of Sindh Engro Coal Mining Company Shamsuddin Shaikh.—APP