It was in 1992 that the Geological Survey of Pakistan (GSP) discovered huge sub-surface deposits of coal--the largest in the world--in Thar District (Sindh). As the news spread globally, a number of foreign investors showed interest in the exploitation of Thar coal resources for powe generation. No concrete proposal was however received.
In response to the Energy Policy 1994 Consolidated Electric Power Asia Ltd of Hong Kong signed an memorandum of understanding (MoU) for developing a 1,425 mw capacity integrated power project based on Thar coal. But it did not materialize.
Related activities on the part of the government however continued on priority. From 1993 to 2001, the GSP conducted comprehensive exploration, assessment, evaluation and appraisal studies of the Thar coal resources, establishing technical and commercial viability of confirmed reserves of 175.5 billion tons of coal.
The Thar coal, classified as lignite A-B, contains low ash and sulfur contents and is suitable for power generation, which would not have relatively less adverse environmental and ecological effects. Thar coal fields covering an area of 9,000 sq. km has been divided into four blocks of coal demarcation for administrative and logistic purposes.
The pioneering efforts however were made by President Musharraf who took personal interest in developing these coal fields on a fast track basis, and asked the Chinese, who have demonstrated strong commitment to participating in economic development of Pakistan, to come forward to invest in this mega project.
In April 2002, a state-run Chinese company Shenhua Group Corporation, was asked by the government to develop block-one of the coal fields, accepting its proposal to establish a 600-MW power generation plant at the mine-mouth with associated captive coalmines.
Subsequently, Shenhua Group, in association with the GSP, carried out studies related to coal-geological and hydro-geological investigations, and a feasibility report for the project was completed. The cost of these studies is estimated to be $7 million dollars.
In response to the Energy Policy 1994 Consolidated Electric Power Asia Ltd of Hong Kong signed an memorandum of understanding (MoU) for developing a 1,425 mw capacity integrated power project based on Thar coal. But it did not materialize.
Related activities on the part of the government however continued on priority. From 1993 to 2001, the GSP conducted comprehensive exploration, assessment, evaluation and appraisal studies of the Thar coal resources, establishing technical and commercial viability of confirmed reserves of 175.5 billion tons of coal.
The Thar coal, classified as lignite A-B, contains low ash and sulfur contents and is suitable for power generation, which would not have relatively less adverse environmental and ecological effects. Thar coal fields covering an area of 9,000 sq. km has been divided into four blocks of coal demarcation for administrative and logistic purposes.
The pioneering efforts however were made by President Musharraf who took personal interest in developing these coal fields on a fast track basis, and asked the Chinese, who have demonstrated strong commitment to participating in economic development of Pakistan, to come forward to invest in this mega project.
In April 2002, a state-run Chinese company Shenhua Group Corporation, was asked by the government to develop block-one of the coal fields, accepting its proposal to establish a 600-MW power generation plant at the mine-mouth with associated captive coalmines.
Subsequently, Shenhua Group, in association with the GSP, carried out studies related to coal-geological and hydro-geological investigations, and a feasibility report for the project was completed. The cost of these studies is estimated to be $7 million dollars.
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