Tharparkar District Real Estate News and Land Insights

Tharparkar | ReNews Pakistan
Sindh Engro Coal Mining Company is preparing to launch Phase III of the Thar Block II coal project, marking another major step in Pakistan’s efforts to strengthen energy security through the greater use of domestically produced coal.
The proposed expansion is expected to increase coal production at Pakistan’s largest operational coal mining project, enabling more power plants to benefit from locally available fuel while reducing the country’s dependence on imported energy sources.
The announcement was made as Sindh Engro Coal Mining Company and Engro Powergen Thar Limited completed seven years of commercial operations at Thar Block II. The integrated mine mouth energy project formally achieved its Commercial Operations Date on July 10, 2019.
Developed through a public private partnership involving the federal and Sindh governments, along with local and international investors, the project combines coal extraction and power generation at the same location. This arrangement helps reduce transportation costs and allows coal to be supplied directly from the mine to nearby power plants.
Since the start of commercial operations, the Thar Block II mine has increased its annual production capacity to 7.6 million tonnes. During this period, the project has supplied more than 38 million tonnes of indigenous coal for electricity generation.
Coal extracted from the mine has enabled Engro Powergen Thar Limited to generate more than 27,000 gigawatt hours of electricity, contributing significantly to the national grid and helping limit Pakistan’s exposure to volatile international fuel prices.
The project has assumed greater importance at a time when Pakistan continues to face pressure from rising energy import costs, foreign exchange shortages and fluctuations in global oil, coal and liquefied natural gas prices.
By expanding the use of Thar coal, energy planners hope to improve the affordability and stability of power generation while making better use of the country’s domestic natural resources.
Sindh Engro Coal Mining Company Chief Executive Officer Amir Iqbal said the company had spent more than a decade working to strengthen Pakistan’s energy security through affordable electricity production and sustainable economic development.
He said the project had also created employment and business opportunities for communities in Tharparkar, while supporting local infrastructure, education, healthcare and livelihood initiatives.
Describing Thar coal as a national asset, Amir Iqbal said the company remained committed to inclusive development as it prepared to move into the next stage of expansion.
Athar Abrar Khwaja, Chief Executive Officer of Engro Powergen Thar Limited and Engro Energy Limited, said the power plant had consistently remained among the lowest cost electricity producers in Pakistan since beginning operations.
He said Engro Powergen Thar Limited was Pakistan’s first independent power producer to generate electricity using Thar coal and had demonstrated the potential of indigenous resources to support reliable and comparatively affordable power generation.
According to the company, the proposed Phase III expansion will further improve the scale and efficiency of mining operations. Increased production could allow additional power generation capacity to shift towards locally produced coal, subject to government approvals, financing arrangements and supporting infrastructure.
The expansion may also strengthen the economic viability of the Thar coalfield by lowering the per tonne cost of coal through economies of scale.
Energy sector experts have long argued that the development of Thar coal could help Pakistan diversify its energy mix, although they have also stressed the need for strong environmental safeguards, efficient water management and long term planning as mining and power generation activities expand.
With billions of tonnes of estimated coal reserves, the Thar region is considered one of Pakistan’s most important energy resource areas. The success of Phase III could therefore have broader implications for power sector planning, industrial growth and the country’s efforts to reduce its energy import bill.
The latest expansion plan reflects a renewed focus on indigenous energy production as Pakistan seeks to improve energy reliability, control generation costs and build greater resilience against external fuel price shocks.
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