The third-phase expansion of the Thar Block-II coalmine has commenced in Sindh’s Tharparkar district, further increasing the mine’s annual production capacity from 7.6 million tonnes to 11.2 million tonnes and the use of indigenous resources for affordable power generation.

Sindh Engro Coal Mining Company (SECMC) began commercial operations in Thar Block-II in 2019 with an annual mining capacity of 3.8 million tons per annum. The second phase, completed in 2022, increased capacity to 7.6 million tons. With the third phase, the annual production will rise by another 3.6 million tonnes, the third expansion in seven years.

SECMC contributes 14% electricity to the national grid. The additional coal will be supplied to Lucky Electric Power Company Limited (LEPCL), which operates a 660-megawatt power plant. With its inclusion, SECMC will supply coal to power plants with a combined generation capacity of 1,980 MW, including 660MW Engro Powergen Thar Limited (EPTL), 330MW Thar Energy Limited (TEL) and 330MW ThalNova Power Thar Limited (TNPL).

After the expansion, the levelised coal tariff is projected to decline from $36.72 to $32.01 per tonne, resulting in an estimated annual reduction of around Rs15 billion in generation costs and saving an estimated $220 million in fuel imports. The expanded power generation will provide reliable electricity to around 4.5 million households.

Speaking at a ceremony to mark the occasion, SECMC Chief Executive Officer Amir Iqbal said, “Thar’s story is a journey from the impossible to excellence, achieved through vision, collaboration and resilience.” He said Thar is contributing not only to Pakistan’s energy security but also to the country’s economic growth.

PPP Chairperson Bilawal Bhutto-Zardari said the scale of development witnessed in Thar was unmatched elsewhere in Pakistan, highlighting the transformation in the region’s health and education systems. He felicitated SECMC on its achievement, with the Thar mine now ranked among the top 4% of mines globally.