ISLAMABAD: Sindh Engro Coal Mining Company (SECMC) has signed a coal supply agreement with Lucky Electric Power Company for the delivery of 3.6 million tons of coal per annum from its open-pit mine in block-II of Thar field.
SECMC will supply coal to Lucky Electric, an unlisted company incorporated in 2014, as part of the third phase of mine expansion.
Previously, SECMC had entered into 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 that will generate 1,320 megawatts of electricity.
Electricity production with the help of Thar coal reserves is expected to begin from December this year.
SECMC’s coal mine in block-II is at its optimum capacity and will be the cheapest source of energy in Pakistan with production of 30 million tons of coal per annum at $32 per ton.
This will translate into approximately 6 US cents per kilowatt-hour (unit) of electricity and will be sufficient to fuel the production of 5,280 megawatts over the next 50 years.
According to a statement, the Lucky Electric project involves the development, construction and operation of a super-critical (environment-friendly) coal-fired power plant of 660MW production capacity.
The power plant will consist of one coal-fired generating unit and the entire equity has been injected by Lucky Cement through its wholly owned subsidiary LCL Holdings Limited.
The project is spread over 250 acres at Port Qasim, Karachi. Under the agreement, coal will be transported from Thar for the first time to a power plant based outside of the desert region through trucks.
Lucky Cement CEO Muhammad Ali Tabba, while speaking at the agreement signing ceremony, expressed his resolve to contribute to the national progress and energy self-reliance.
While praising the cooperation between Lucky Electric and SECMC, he stressed the need for taking more such initiatives for connecting business houses.
Expressing his opinion on the occasion, SECMC CEO Shamsuddin Shaikh stated “this partnership is a testament to the promise of making Pakistan a self-sufficient energy hub. SECMC will continue to expand to provide sustainable and affordable energy through an indigenous resource, helping the nation overcome the energy crisis.”