Thar Block II Expansion To Add 3.6m Tonnes Of Annual Coal Output
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✧ GENERATE BRIEFING
The Phase III expansion of the Thar Block II coal mine has been officially inaugurated in Tharparkar by Sindh Chief Minister Murad Ali Shah and PPP Chairman Bilawal Bhutto Zardari, marking a monumental leap for Pakistan's domestic energy independence. Fully funded through 100% self-financing, the ambitious expansion will boost annual production capacity from 7.6 million tonnes to 11.2 million tonnes—adding 3.6 million tonnes of indigenous coal output annually. This increased output will primarily feed Lucky Electric Power Company’s 660-megawatt power plant, elevating the cumulative electricity generation supported by Thar coal to a robust 1,980 MW and supplying reliable electricity to roughly 4.5 million households daily.Chief Minister Murad Ali Shah underscored that the expanded domestic supply will drive down mine-mouth power generation costs to approximately $3.75 per MMBtu, rendering local coal-fired electricity roughly three times cheaper than energy generated from imported coal.
The Phase III expansion of the Thar Block II coal mine will increase annual production capacity from 7.6 million tonnes to 11.2 million tonnes, Sindh Chief Minister Murad Ali Shah said on Monday.
The expansion will add 3.6 million tonnes of annual production capacity and is being completed through 100% self-financing, according to the chief minister. The Phase III project was inaugurated in Tharparkar by Murad Ali Shah and PPP Chairman Bilawal Bhutto Zardari.
The additional coal production will enable Lucky Electric Power Company’s 660-megawatt power plant to operate on Thar coal. With the expansion, total electricity generation supported by Thar coal is expected to reach 1,980MW.
Cost Efficiency and Foreign Exchange Savings
Murad said the expansion would reduce the cost of mine-mouth power generation to around $3.75 per MMBtu, with electricity generated from local coal expected to be about three times cheaper than power based on imported coal.
The Sindh chief minister estimated that Phase III would save around Rs15 billion annually in power-generation costs and approximately $220 million in foreign exchange each year by reducing reliance on imported fuel. The Thar coal project has already generated more than $1.7 billion in foreign-exchange savings, according to his remarks.
The expansion is also expected to support electricity supply to around 4.5 million households daily, while the additional domestic coal capacity is expected to strengthen Pakistan’s energy security amid volatility in international fuel markets.
Transport Infrastructure and Future Industrial Use
Murad said the development would also pave the way for the Thar Rail project, which could improve transportation of locally produced coal and make Thar coal accessible to power plants and other users across the country.
The Sindh government is also considering further industrial uses of Thar coal, including urea production and coal gasification to produce syngas for industrial and fuel applications. Such projects could expand the use of domestic coal beyond electricity generation.
The Phase III expansion builds on the existing development of Thar Block II, which had reached 7.6 million tonnes per annum capacity and supplied more than 38 million tonnes of indigenous coal since commercial operations began in 2019.
