Cement maker plans to use Thar coal for production

KARACHI: A local cement making company has planned to use Thar coal for cement production in its manufacturing unit, eyeing to reduce use of imported coal and contain input cost, a statement said on Wednesday.

The cement maker Power Cement signed a memorandum of understanding with Sindh Engro Coal Mining Company (SECMC) that will allow the earlier to conduct a trial run of Thar coal for cement production in their kilns, which may help reducing demand for imported coal.

“Blending of Thar coal will help cement companies to contain rising costs of their inputs as coal is an important raw material for cement production. It will also help reduce the pressure on foreign exchange reserves for importing coal for the country at large,” SECMC CEO Amir Iqbal said.

Thar coal could help turn around short and long-term economic crises gripping the country, he added.

Iqbal stated that in view of an increase in the price of coal in the international market and a foreign exchange crisis in Pakistan, the utility and economic significance of Thar coal as a raw material for cement industry had increased.

“Blending of up to 20 percent of Thar coal for the cement making process has been carried out by other cement companies also with excellent results.”

Kashif Habib, CEO of Power Cement, said, “Due to the increase in the price of commodities at the global level and the tough economic conditions in the country, the cement sector like other industries is also affected.”

Importing raw material such as coal increases the cost of production whereas utilising indigenous resources enables cement companies to be competitive locally as well as internationally, according to Habib.

He emphasised that Thar coal would prove to be an excellent resource due to its continuous availability and economically viable cost.