Thar Block II Phase III Expansion Kicks Off to Boost Annual Coal Production to 11.2 Million Tonnes
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✧ GENERATE BRIEFING
The Third Phase expansion of the Thar Block II coal mine has officially commenced in Sindh’s Tharparkar district, marking another major milestone for Pakistan's domestic energy independence. Implemented by the Sindh Engro Coal Mining Company (SECMC), the new expansion will boost annual production capacity by an additional 3.6 million tonnes, elevating total output from 7.6 million tonnes to 11.2 million tonnes per annum—the third major expansion achieved in seven years since commercial operations began in 2019. Inaugurated in a high-profile ceremony by PPP Chairperson Bilawal Bhutto-Zardari and Sindh Chief Minister Syed Murad Ali Shah, alongside SECMC CEO Amir Iqbal, the project cements Thar's status among the top 4 percent of mining operations globally.The expanded coal output will directly feed Lucky Electric Power Company Limited’s (LEPCL) 660 MW power plant, bringing total national grid electricity supported by Thar coal to a robust 1,980 MW—alongside existing plants like EPTL, TEL, and TNPL while reliably powering approximately 4.5 million households.
The Third Phase expansion of the Thar Block II coal mine 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 MTPA. The second phase, completed in 2022, increased capacity to 7.6 MTPA. With the third phase, the annual production will rise by another 3.6 million tonnes, the third expansion in seven years.
Leadership Remarks and Vision
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 added that Thar is contributing not only to Pakistan’s energy security but also to the country’s economic growth.
“Thar stands as a testament to the power of public-private partnership and proof that we can achieve what once seemed impossible. As we continue to energise Pakistan, our ambition is to build SECMC into a world-class, sustainable mining company.”
PPP Chairperson Bilawal Bhutto-Zardari said the scale of development witnessed in Thar is unmatched elsewhere in Pakistan, highlighting the transformation in the region’s health and education systems. He also felicitated SECMC on its achievement, with the Thar mine now ranked among the top 4 percent of mines globally.
Sindh Chief Minister Syed Murad Ali Shah said the provincial government will continue supporting the SECMC on expanding production for energy generation and other industrial needs.
Grid Contribution and Economic Impact
SECMC contributes 14 percent electricity to the national grid. The additional coal will be supplied to Lucky Electric Power Company Limited (LEPCL), which operates a 660 MW power plant. With its inclusion, SECMC will supply coal to power plants with a combined generation capacity of 1,980MW, including 660MW Engro Powergen Thar Limited (EPTL), 330MW Thar Energy Limited (TEL), and 330MW ThalNova Power Thar Limited (TNPL).
After the expansion, the levelized 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 save an estimated $220 million in fuel imports. The expanded power generation will provide reliable power to around 4.5 million households.
Along with community development programs, health and education initiatives, and creating jobs, the company aims to develop Thar’s vast resources into a strategic national asset and serving the nation’s industrial requirements.
