SECMC, Lucky Power sign deal

KARACHI: Sindh Engro Coal Mining Company (SECMC) has signed a coal supply agreement with Lucky Electric Power Company Limited (LEPCL) to supply 3.6 million tons of coal per annum from its open pit coal mine in Thar Block II, a statement said on Friday.

Coal will be supplied to LEPCL as part of Phase-III of mine expansion by SECMC, it added.

Previously, SECMC had signed coal supply agreements with Engro Powergen Thar Limited, Thar Energy Limited and ThalNova Power Thar Limited for cumulative supply of 7.6 million tons per annum, which will generate 1,320MW.

The first electron to be produced from Thar coal is expected by December 2018, the statement said, adding that SECMC’s Block II mine at its optimum capacity will be the cheapest source of base-load energy in Pakistan, producing 30 million tons per annum at $32/ton, which translates into approximately 6 US cents/kWh, sufficient to fuel 5,280MW for the next 50 years.

The LEPCL project involves development, construction and operation of a super-critical coal fired Power Plant with a capacity of 660MW.

SECMC CEO Shamsuddin Shaikh said the company would continue to expand to provide sustainable and affordable energy through an indigenous resource, helping the nation overcome the energy crisis.

“Utilisation of Thar coal will also contribute in a number of ways such as employment generation, infrastructure development and significant savings in foreign exchange against imported fuels,” he added.