Sindh govt. and Global Mining Company of China sign MoU for Thar Coal mining and power generation

Karachi: Sindh government and a renowned Chinese firm, M/s Global Mining Company Monday signed a Memorandum of Understanding for Coal Mining and Power Generation Project in Block-I of Thar Coalfield.

Mohammad Younus Dagha, Secretary Coal and Energy Development Department and Mr. Liyang Liu, Chief Executive Officer of Sino-Sindh Resources, a local subsidiary of Global Mining Company signed the MoU on behalf of respective sides at Chief Minister’s House here.

Zubair Motiwala, Chairman Sindh Board of Investment briefed that the provincial government had initiated the process of International Competitive Bidding for allocation of various blocks of Thar Coalfield in December, 2010 and after detailed deliberations and due diligence, the Thar Coal and Energy Board allocated Block-I of Thar Coalfields having area of 122 sq. km to the renowned Chinese company Global Mining Company.

The GMC intends to develop coal mine of 5 million tons/ annum initially and power generation of 900 MW to be scaled up to 2100 MW with an initial investment of US$ 3.0 billion. They are also willing to invest US$ 1.5billion in key infrastructure projects.

Mr. Liyang Liu, CEO of Sino-Sindh Resources, a local subsidiary of Global Mining Company in his speech thanked the Government of Sindh for allocation of Block-I of Thar Coalfield and assured that the Global Mining Company will complete the Feasibility Study within six months and ground breaking ceremony of Mine Construction will be held in the first week of April 2012.

Production of coal will start within three years and power generation of 900 MW is expected by 2014. The GMC consortium proposes to invest approximately US$ 4.5 Billion up to 2016 and another US$4 Billion would be invested to reach the target of producing 10,000 MW by year 2020. The GMC further intends to invest in construction of key infrastructure such as transmission line, water conduit and effluent treatment system with an estimated cost of US$ 1.5 Billion.

Chief Minister Sindh Syed Qaim Ali Shah appreciated the planned investment in the mega project and assured that the Government will provide all possible help and facilitation to the Chinese Company for Coal Mining and Power Generation Project.

He further said that Sindh has huge reserves of coal out of which 175 billion ton are located in the Thar Coalfields. Governments of Pakistan and Sindh have assigned top priority to develop the coal mining, coal-based power generation and other uses of coal by offering most attractive fiscal incentives, protections and guarantees to the investors in coal sectors.

These projects are seen as vital for Pakistan’s Energy Security besides having the potential to turn the economy of the country around. The MoU signing ceremony was also attended by Syed Murad Ali Shah, Provincial Minister for Finance and others.

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