The Phase-III expansion of Sindh Engro Coal Mining Company’s (SECMC) Thar Block-II coal mine has increased annual production capacity from 7.6 million tonnes to 11.2 million tonnes, strengthening Pakistan’s reliance on indigenous energy resources and reducing dependence on imported fuels.
Pakistan Peoples Party Chairman Bilawal Bhutto-Zardari inaugurated the expansion and the country’s first coal drying unit at a ceremony in Tharparkar. The latest expansion adds 3.6 million tonnes to annual production capacity and has been completed through 100 percent self-financing.
SECMC commenced commercial operations in 2019 with a capacity of 3.8 million tonnes per annum (MTPA). Its Phase-II expansion, completed in 2022, doubled capacity to 7.6 MTPA. The latest development marks the mine’s third expansion in seven years.
The additional coal output will supply Lucky Electric Power Company’s 660-megawatt power plant, increasing total electricity generation supported by Thar Block-II coal from 1,320 MW to 1,980 MW. Officials said this capacity could supply approximately 4.5 million households daily.
The project’s mine-mouth power generation cost stands at around $3.75 per MMBtu, making it a competitive alternative to imported coal. The expansion is expected to save approximately Rs15 billion annually in power generation costs and $220 million in foreign exchange each year. Cumulative foreign exchange savings since operations began have exceeded $1.7 billion.
SECMC Chief Executive Officer Amir Iqbal highlighted the role of public-private partnerships, engineering expertise and investment in developing Thar’s coal resources. Sindh Chief Minister Syed Murad Ali Shah also acknowledged the contribution of engineers, workers and stakeholders in advancing the project and strengthening Pakistan’s energy security.
