Sindh Engro Coal Mining Company (SECMC) and Power Cement has signed a memorandum of understanding (MOU) for a trial run of Thar coal for cement production in their manufacturing unit. The memorandum was signed by Sindh Engro Coal Mining Company CEO Amir Iqbal and Power Cement CEO Kashif Habib. Chief Operating Officer of Power Cement Ahsan Anis, Director Export Marketing Saifuddin Khan and DGM International Trade Badar Bin Anwar were also present on this occasion. Accompanied by GM Commercial SECMC Fahim, Manager Business Development Faisal Aziz, Manager Technical & Mine Planning Arsalan Anwar and Manager Commercial Faizan Rafique.
Under the MoU between the two entities, Power Cement will conduct a trial run of Thar coal for cement production in their kilns which will help them offset their demand for imported coal.
Commenting on this development, Sindh Engro Coal Mining Company CEO Amir Iqbal said that Thar coal can turn around the short- and long-term economic crisis gripping the country. In view of the extraordinary increase in the price of coal in the international market and the foreign exchange crisis in Pakistan, the utility and economic significance of Thar coal as a raw material for cement industry has increased.
He said that blending of up to 20 percent of Thar Coal for the cement making process has been carried out by other cement companies also with excellent results. “Blending of Thar coal will help cement companies to contain rising costs of their inputs as coal is an important raw material for cement production. It will also help reduce the pressure on foreign exchange reserves for importing coal for the country at large.”
Kashif Habib, CEO of Power Cement, said that due to the increase in the price of commodities at the global level and the tough economic conditions in the country, the cement sector like other industries is also affected. Importing raw material such as coal increases our cost of production whereas utilizing indigenous resources enables us to be competitive locally as well as internationally.
He emphasized that Thar coal will prove to be an excellent resource due to its continuous availability and economically viable cost.
According to estimates by experts, 5 million tons of coal per year will be required for blending up of up to 20% of Thar Coal in the cement industry. This will save a substantial amount of foreign exchange reserves for the country and prove once again that Thar Coal is the game changer for Pakistan.