Block-1 is owned and operated by Sino-Sindh Resources Limited, whose majority shareholder is Shanghai Electric Group.
By GR Junejo
Mithi
The first shovel of lignite coal was excavated at the coal pit of Block-1 in the Thar coalfields at 9a.m on Monday January 31, 2022. Block-1 is owned and operated by Sino-Sindh Resources (Private) Limited (SSRL), whose majority shareholder is Shanghai Electric Group.
Block-1 is Pakistan’s largest coal mine with reserves of over 3 billion tons (or over 5 billion barrels of crude oil equivalent) with annual output of 7.8 million tons per annum in just the first phase alone and is classified as an “Early Harvest Project – EHP” under the China Pakistan Economic Corridor (CPEC) which is a flagship project of China’s historic Belt and Road Initiative (BRI) to bring unparalleled levels of infrastructure and development to countries falling under the BRI.
On Sep 19, 2011, the SSRL received allocation of Thar–Coal Block I to develop open-pit coal mine while on May 24, 2012 it was granted mining lease and project was included in Joint Energy Working Group (JEWG) by government of Pakistan and Government of China. As soon as both the governments of Pakistan & China officially announced CPEC in 2013, the Thar-Coal Block I project was included in CPEC as a part of Early Harvest program. After becoming part of EHP of CPEC energy projects agreed between Government of Pakistan and China, SSRL was fortunate to receive all round support from the Governments of Pakistan & China as well as from Government of Sindh. After back to back meetings between SSRL and Shanghai Electric group and Government of Sindh Energy Department on January 23, 2019 first excavation started for development of the largest open-pit Coal mine in Block-I. Financial close for the project was achieved done on December 31, 2019. Soon after first excavation SSRL management started importing mining equipment from China and by July 2020 all the required equipment was at project Site.
“After arrival of machinery SSRL management and its sub-contractors worked in full capacity day and night despite all the Challenges (COVID-19 pandemic, hot weather, dewatering and etc.) by the grace of Almighty Allah today on January 31, 2022, the first layer of Coal was explored in extremely good condition,” SSRL said in a press release.
“This first shovel of Coal will go long way for solving energy crisis, employment generation and allied developments resulting in commercial and other economic activities in Thar region,” it said adding that development of indigenous resource base at Thar will go a long way toward Pakistan achieving its long cherished goal of energy security and economic security and sovereignty.
Thar coal can be used in power generation at mine mouth plus used to substitute imported coal and also be used to produce all manner of chemicals which Pakistan is currently importing.
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