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SECMC hits 10 million t production milestone

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World Coal,

On 17 December 2021, Sindh Engro Coal Mining Company (SECMC) has successfully achieved 10 million t of coal production milestone. SECMC, one of the largest public-private partnership in the energy sector, commenced commercial operations in July 2019 with an annual production capacity of 3.8 million t. Over the past 2.5 years, SECMC has successfully unearthed 10 million t of coal, effectively transforming the energy landscape of Pakistan by facilitating production of electricity using indigenous coal reserves.

The record production over the last 2.5 years has resulted in the generation of over 10 000 GWh of electricity, contributing to the national grid. Besides, the company’s record production of coal and generation of electricity using Thar’s local reserves has benefitted the national economy by saving US$210 million through import substitution during the same period.

During the course of operations, SECMC has maintained a stellar safety record following international and world-class benchmarks – a feat that has earned international acknowledgements from organisations such as British Safety Council. The company has also adopted the United Nation’s Sustainable Development Goals (SDG) framework to deploy high-impact interventions prioritising education, health, economic growth and women empowerment amongst other areas.

SECMC has also contributed to uplifting the local community by generating employment opportunities for the local population and creating other economic avenues for the community. It is pertinent to mention that 80% of the employees in SECMC are locals from Sindh where the project has provided significant socio-economic benefit to the local Thari population.

“The 10-million coal production mark is a commendable achievement considering the constant fluctuation and vulnerability in international coal prices,” said SECMC CEO, Amir Iqbal. He added that Thar coal is the best resource to help the national economy in terms of easing out the pressure on the current account deficit and also indigenise the current energy mix which is heavily reliant on imported fuels. Currently, the second phase of the SECMC mine is already under development, which will increase SECMC’s production to 7.6 million tpy with a cumulative power generation of 1320 MW.

Talking about the subsequent phase III expansion project, Iqbal said that the estimated investment for phase III expansion is to be approximately US$100 million, which will enable Thar Block-II to achieve a sustainable supply of 12.2 million tpy of coal over the next 30 years. SECMC is expected to complete this expansion by June 2023 and with this expansion coal price of SECMC mine is to be reduced to under US$30/t – making it the cheapest fuel source in the country ensuring economic stability and energy security for the country.

In addition, phase III expansion will also enable Pakistan to save US$420 million/y on the account of import substitution whilst also leading to a reduction of PKR 74 billion in circular debt on an annual basis.

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