Sindh Engro Coal Mining Company (SECMC) has signed a coal supply agreement with Lucky Electric Power Company Limited (LEPCL) to supply 3.6 million tonnes of coal per annum from its open pit coal mine in Thar Block II. Lucky Electric Power Company Limited (LEPCL) is a public unlisted Company, incorporated in 2014.
Coal will be supplied to LEPCL as part of Phase III of mine expansion by SECMC. Previously, SECMC had signed Coal Supply Agreements with Engro Powergen Thar Limited, Thar Energy Limited and ThalNova Power Thar Limited for cumulative supply of 7.6 Million tonnes per annum which will generate 1320 MW. The first electron to be produced from Thar Coal is expected by December 2018. SECMC’s Block II mine at its optimum capacity will be the cheapest source of baseload energy in Pakistan, producing 30 million tonne per annum at USD 32/tonne which translates into approximately 6 US cents per kWh, sufficient to fuel 5280 MW for the next 50 years.
The LEPCL project involves development, construction and operation of a super-critical coal fired Power Plant with a capacity of 660 MW. The Power Plant will consist of a one coal-fired generating unit with a maximum gross capacity of approximately 660 MW. The entire equity has been injected by Lucky Cement Limited through its fully owned subsidiary LCL Holdings Limited. The LEPCL project site is spread over 250 acres in Port Qasim, Karachi. For the first time, Thari coal will be transported from Thar to a power plant based outside of Thar through trucks.
Mr. Muhammad Ali Tabba, CEO Lucky Cement Limited graced the occasion with his presence during the signing ceremony and expressed his resolve of contributing towards national progression and energy self-reliance in Pakistan. He is a firm believer of aligning individual business development objectives with national economic development paradigm to ensure rapid and sustained growth in Pakistan. Mr. Tabba appreciated the synergy evolved amongst LEPCL and SECMC and stressed the need of encouraging more initiatives connecting business houses.
Expressing his opinion about the agreement at the ceremony, CEO of SECMC, Shamsuddin Shaikh stated that, “This partnership is a testament to the promise of making Pakistan a self-sufficient energy hub. SECMC will continue to expand to provide sustainable and affordable energy through an indigenous resource, helping the nation overcome the energy crisis.” He further stated that the utilization of Thar coal will also contribute in a number of ways such as employment generation, infrastructure development and significant savings in foreign exchange against imported fuels.
On behalf of SECMC, the CSA was signed by SECMC COO Syed Abul Fazal Rizvi, while CEO of Lucky Electric, Intesar Ul Haqqi signed on behalf of LEPCL.