Thar coal: Public hearing on Sino Sindh Resource tariff petition concluded

Karachi, March 13, 2025 – The Thar Coal & Energy Board (TCEB) today successfully concluded a public hearing on the tariff petition filed by Sino Sindh Resources Pvt. Ltd. (SSRL) for the determination of the Commercial Operations Date (COD) Stage Tariff for its 7.8 million tons per annum (Mtpa) lignite mine at Block-1 of the Thar Coalfield.

The hearing, held at a local hotel in Karachi, saw active participation from stakeholders, industry experts, and members of the public.

Presided over by Tariq Ali Shah, Managing Director of TCEB, the hearing was conducted by a committee comprising Ammar Habib Khan, Member Finance/Power, and Dr. Fahad Irfan Siddiqui, Member Mining of the Thar Coal Tariff Determination Committee.

Project Overview and Achievements
Mr. Li Jigen, CEO of SSRL, presented the details and milestones of the Thar Block-1 Integrated Energy Project. Located in the Thar region of southeastern Sindh, the project includes a 7.8 Mtpa lignite open-pit coal mine and 2×660 MW high-parameter supercritical coal-fired power generation units. The Block-1 mine covers an area of 150 km², with an estimated coal reserve of 2.6 billion tons.

Mr. Jigen highlighted that the project has been prioritized in the National Transmission and Dispatch Company (NTDC) merit order list due to its competitive pricing, producing electricity at PKR 5.52/kWh (USD 0.02 cents/kWh). He emphasized that power generation from Thar Block-1 is significantly cheaper than hydroelectric sources, making it a cost-effective solution for Pakistan’s energy needs.

Strategic Importance and Economic Impact
The Thar Block-1 project is a flagship initiative under the China-Pakistan Economic Corridor (CPEC) and the Belt and Road Initiative (BRI). Developed and invested by Shanghai Electric, a state-owned Chinese company, the project operates under the Build-Own-Operate (BOO) model, with a total investment of nearly USD 3 billion—the largest single Chinese investment in any country.

Since December 2022, the project has been supplying 1,320 MW of stable power to the national grid, significantly enhancing Pakistan’s energy security by reducing reliance on costly energy imports. By utilizing indigenous coal resources, the project is expected to save approximately USD 1.5 billion in foreign exchange reserves over its operational lifetime.

In addition to energy security, the project has created substantial job opportunities and boosted economic growth in the Thar region. SSRL has also allocated USD 1.6 million for corporate social responsibility (CSR) initiatives, further contributing to local development.

Key Highlights from the Hearing

• SSRL proposed a levelized COD Stage Coal Tariff of USD 48.71 per tonne, reflecting adjustments based on project costs.
• The total project cost was petitioned at USD 949.54 million, including EPC costs of USD 737.23 million and non-EPC costs of USD 134.35 million.
• Operational costs were outlined, with levelized variable O&M costs projected at USD 13.72 per tonne and fixed O&M costs at USD 12.74 per tonne.

Commitment to Transparency
The TCEB expressed appreciation for the active participation of stakeholders and the public during the hearing. The feedback received will be carefully considered in the final determination of the tariff. The TCEB reiterated its commitment to transparency and stakeholder engagement in the decision-making process.

The Thar Block-1 Integrated Energy Project stands as a testament to Pakistan’s efforts to harness its indigenous resources for sustainable energy production, economic growth, and energy security.