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  • 7/28/2019 Coal Based Power Project III for Pakistan 2007.pdf

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IARReport # 71 Sep1-15,2007

    COAL BASED POWER PROJECT - III

    H I G H L I G H T S

    zzzzz Du e to hi gh cost of i mported energy

    government has decided to enhance the

    share of coal from 5 to 19 percent by 2030.

    zzzzz Energy Secur ity Action Plan has set a target

    of generati ng 20,000 MW power from coalby 2030 and 50 percent by 2050.

    zzzzz Pakistani i ndustry is largely based on Gas

    as fuel and its reser ves are dwindli ng

    rapidly.

    zzzzz Pakistan has the 7th largest coal r eserve

    among the top 20 countri es in the world.

    zzzzz The Sindh Coal Author ity has decided to

    carr y out a hydrological study to explore

    underground or sur face water r esour ces

    requi red in abundance for coal min ing andhuman consumption.

    WLL: 021-5458129

    Coal ReservesThe coal deposits in Pakistan was known before

    independence, but its economic value was highlighted

    in 1980, when large reserves of coal were discovered

    in the Lakhra and Sonda, Tharparkar District of Sindh

    Province. These reserves spread over an area of

    10,000 sq km. This discovery has provided a quantum

    increase in the coal resources of Pakistan and made

    the country having the 7th largest coal reserve among

    the top 20 countries in the world.

    The reserves were discovered by Geological

    Survey of Pakistan and US Geological Survey with

    the financial support of USAID.

    Coal is found in all four provinces of Pakistan

    but especial emphasis is being given on utilization of

    reserves of Thar coalfield. In the Sindh province coalresources estimated at 175 billion ton. Due to high

    cost of imported energy government has decided to

    enhance the share of coal in the overall energy mix

    from 5 to 19 percent by 2030.

    Energy Security Action Plan has set a target of

    generating 20,000 MW power from coal by 2030

    and 50 percent by 2050. Total national coal

    production, from operational coal mines, increased

    by 6.5 percent from 4.6 million ton in 2005-06 to

    4.9 million ton in 2006-07. Presently, over 80 percentof coal is consumed by the brick kiln industry

    reducing the supply available for power generation.

    Approximately 80 percent of cement industry has

    switched over to coal from furnace oil that has saved

    considerable foreign exchange being spent on the

    import of furnace oil.

    The conversion of cement industry from furnace

    oil to coal has generated a demand for 2.5 to 3.0

    million ton coal per annum. But these units are mainlyusing imported coal. Table-1 shows field wiseproduction of coal during 2000-06. During the 6 yearsaverage increase in import of coal was 24.5 percent,which is quite height, table-3. In the same yearsaverage production of indigenous coal in Balochistanincreased 3.2 percent, Punjab 7.4 percent, Sindh 15.5percent and NWFP/Fata 51.2 percent. The total

    increase has been 9.5 percent.

    To ascertain commercial viability of coal mining

    from Thar, German consultant M/s RheinbraunEngineering has done a detailed mining feasibility onblock-1 in Thar coalfield. The same block is aimedfor commissioning of integrated coal mining and 1000

    MW power generation project first given tointernational Chinesefirm and now to Hasan

    Associates for conducting feasibility study for

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IAR - 8 -- 2 -

    Table - 1

    Production of Coal by Field

    Province/Field 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 ACGR

    BALUCHISTAN

    Sor Range 154,598 140,028 167,252 145,039 129,172 122,417 -4.6%

    Degari 50,954 44,811 62,993 58,558 55,966 47,257 -1.5%

    Sharigh 111,391 123,330 157,724 167,128 197,677 265,804 19.0%

    Sinjidi 202,543 199,744 196,115 161,410 128,895 121,413 -9.7%

    Mach 239,653 228,821 219,649 188,473 302,939 307,539 5.1%

    Harnia-Khost-Nasaka-

    Zardalu 116,076 136,143 55,608 124,639 143,736 169,086 7.8%

    Duki 311,977 382,172 420,929 417,726 436,222 531,929 11.3%

    Pir Ismail Ziarat 421,980 440,794 359,890 325,051 350,116 366,090 -2.8%

    Abegum 62,513 69,246 69,236 57,730 63,576 27,380 -15.2%

    Barkhan/Chamalong 1,545 17,457

    Sub-Total 1,673,230 1,742,546 1,709,396 1,645,748 1,808,299 1,958,915 3.2%

    PUNJAB

    Marerwal/Salt Range 401,346 505,371 502,326 535,066 544,326 573,684 7.4%

    Sub-total 401,346 505,371 502,326 535,066 544,326 573,684 7.4%

    SINDH

    Lakhra 970,738 1,006,715 1,031,129 900,613 - - -

    Jhimpir 7,802 14,865 15,537 10,486 - - -

    Sub-Total 978,540 1,021,80 1,046,666 911,099 2,000,000 2,010,000 15.5%

    NWFP/FATA

    Makerwal/Gulakhel

    /Kohat, FATA 41,536 58,539 53,198 183,571 234,000 328,560 51.2%

    Sub-Total 41,536 58,539 53,198 183,571 234,000 328,560 51.2%

    Total: Ton 3,094,652 3,328,036 3,311586 3,175,484 4,586,625 4,871,159 9.5%

    TOE 1,384,547 1,488,963 1,481,604 1,465,452 2,052,056 2,179,357

    Field-wise breakup not available

    Source: DG (Minerals), Provincial Directorates of Mineral Development

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IARTable - 2

    Coal Resources of Pakistan

    (Million ton)

    Province/Coal field Measured Indicated Inferred Hypothetic Total

    SINDH

    Thar 3,407 10,323 81,725 80,051 175,506

    Lakhra 244 629 455 - 1,328

    Jherruck 106 310 907 - 1,323

    Sonda-Thatta 60 511 2197 932 3,700

    Others 82 303 1881 - 2,266

    Sub-Total 3,899 12,076 87,165 80,983 184,123

    BALOCHISTANSor-Rangee/Degari 15 - 19 16 50

    Duki 14 11 25 - 50

    Khost-Sharig-Harnai 13 - 63 - 76

    Mach-Abegum 09 - 14 - 23

    Pir Ismail Ziarat 2 2 8 - 12

    Chamalong 1 - 5 - 6

    Sub Total 54 13 134 16 217

    PUNJAB

    Central Salt Range 29 - - - -Eastern Salt Range 21 16 02 145 235

    Makerwal 05 08 09 - -

    Sub Total 55 24 11 145 235

    Grand Total 4,008 12,113 87,189 81,144 184,575

    Table - 3

    Import of Coal

    Unit 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 ACGR Ton 950,000 1,080,584 1,578,169 2,789,238 3,307,168 2,842,829 24.5%

    TOE 625,005 710,916 1,038,277 1,835,040 2,175,786 1,870,297

    Import value

    of import -0.70% 13.75% 46.05% 76.74% 18.57% -14504%

    Including coal imported by Pak Steel for use as coke.

    Include 48,356 ton of metallurgical coke imported by Pak steel.

    Source: Federal Bureau of Statistics, Pakistan Steel Mills Corporation.

    - 3 -

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IAR- 4 -

    integrated coal mining and commissioning coal fired

    power-generating plant. Government has also

    established a coal mining company for harnessing Thar

    coal resource.

    Projected Coal RequirementsIt is expected from the facts bellow that coal

    use in future will increase due to:

    zzzzz Pakistani industry is largely based on Gas as

    fuel and its reserves are dwindling rapidly.

    zzzzz Gas prices have increased in the last two

    years by nearly 40 percent.

    zzzzz Gas availability will be reduced from 2009and hence many industries would have to be

    converted on coal.

    Potential Users of Coalzzzzz Power Plants: It is projected that power

    projects in Vinder and other areas will start importing

    coal from 2007. About 7 projects are expected to

    commence consuming over 1,200,000MT coal per

    annum.

    zzzzz Hasan Associates project is also based on

    Thar coal mine.

    zzzzz Sugar Mills: Some sugar mills are

    contemplating of conversion to coal firing. After their

    conversion the consumption would increase by

    500,000 MT per year.

    zzzzz Solvent Extraction Plants: Many edible oil

    producing units are studying to convert their plants

    on coal firing, presently based on gas or gas fired

    generators.zzzzz Textile Mills: Some mills areconsidering

    conversion on coal as reliability of gas supply beyond

    2009 is not sure.

    As a part of promotional activities to increase

    share of coal, the Government of Sindh has leased

    out a coal block to M/s Fatteh Group of Hyderabad

    to commission a coal-based power plant of 250 MW

    in Lakhra coalfield. Government has signed an

    agreement with Chinese company M/s China National

    Chemical Engineering Group Corporation (CNCEC)

    to conduct feasibility study on a coal block in Sonda

    Jerrick coalfields in Sindh.

    US Firm Starts $5 Billion Methane Gas ProjectA US company, Soneri, has started work on

    $5 billion project for discovery of coal-bed methane

    gas under the layers of coal reserves in Sindh.

    According the details, Sindh cabinet on

    December 24, 2006 gave approval, in principle, to

    an agreement for exploration of methane gas in coal

    reserves in the province, according to Sindh Mines

    & Mineral Development Department.

    An MoU was signed with Soneri on November

    27, 2006 during the US visit of President Pervez

    Musharraf.

    The company started survey of coal reserves

    for which special aircraft of Marine Corps of United

    States were used as traditional aircraft could not

    determine the availability of methane gas. The

    company would drill 400 to 600 holes at every coal

    reserve which would then be connected through

    modern system.

    In the first phase, the company has planned tomake investment of $5 billion. At present, there existsno law with regard to gas discovery. Therefore, Sindhgovernment has made some rules. However, beforetheir enforcement, the provincial cabinet would carryout scrutiny so that no legal hitch remains in the project.

    In this regard a committee has been formedcomprising Secretaries of Law, Mines and MineralDevelopment, Finance and Industries, which has beendirected to carry out vetting of the rules and submit

    its report.

    According to an estimate, there are 25 trillioncubic feet methane gas reserves in the province.Thisgas can be used as piped, and also be converted intopetrol or diesel and used in the production ofchemicals.

    The company would be responsible to bring inentire equipment for gas exploration, and Sindhgovernment could levy excise and other taxes, which

    previously was the subject of federal government.

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IAR- 5 -

    Table - 4

    Total Estimated Coal Consumption

    (MT)

    Cement Mills 5,000,000

    Brick Kilns 2,500,000

    Sugar Mills 1,200,000

    Power Plants 3,000,000

    Textile Mills 500,000

    Chemical & Others 1,000,000

    Solvent and Others 600,000

    Total 14,000,000

    Table - 5

    Coal Purchased from the Countries

    2002 to 2006

    Country %

    South Africa 24

    China 24

    Indonesia 50

    Australia 1

    Russia 1

    Source: Private Importer

    Table - 6

    Coal Supply

    (000 ton)

    Year Imports Production

    1990-91 917 3,054

    1991-92 1,069 3,099

    1992-93 994 3,266

    1993-94 1,094 3,534

    1994-95 1,096 3,043

    1995-96 1,080 3,638

    1996-97 840 3,553

    1997-98 960 3,159

    1998-99 910 3,461

    1999-00 957 3,168

    2000-01 950 3,095

    2001-02 1,081 3,328

    2002-03 1,578 3,312

    2003-04 2,789 3,275

    2004-05 3,307 4,587

    2005-06 2,384 4,871

    2007* 3,800 -

    2008* 4,250 -

    Jul-Mar

    2005-06 1,700 2,500

    2006-07 2,825 2,589

    *Estimated

    Source: Hydrocarbon Development Institute of Pakistan

    (HDIP) and Economic Survey 2006-07.

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IAR- 6 -

    Table-7

    Consump

    tionofCoalbySector

    (Unitton)

    Sector

    2000-01

    2001-02

    2002-03

    2003-04

    2004-05

    2005-06

    ACGR

    Domestic

    998

    1,069

    1,111

    1,047

    -

    -

    -

    447

    478

    497

    468

    Brick-KilnIndustry

    2,837,872

    2,577,546

    2,606,852

    2,589,445

    3,906,738

    4,211,825

    8.3%

    1,269,664

    1,153,194

    1,166,305

    1,158,518

    1,747,875

    1,888,845

    Cement/OtherIndustry

    50,000

    663,584

    957,169

    2,508,238

    2,535,168

    2,778,379

    123.3%

    22,370

    331,322

    524,471

    1,544,920

    1,562,637

    1,722,646

    PakSteel

    950,000

    917,000

    1,121,000

    781,000

    1,272,000

    564,450

    -9.9%

    625,005

    603,294

    737,506

    513,820

    836,649

    371,352

    Power(WAPDA)

    205,782

    294,421

    203,623

    184,992

    179,887

    149,334

    -6.2%

    92,067

    111,591

    91,101

    82,765

    80,481

    66,812

    Total:Ton

    4,044,652

    4,408,620

    4,889,755

    6,064,722

    7,893,793

    7,713,988

    13.8%

    TOE

    2,009,552

    2,199,880

    2,519,881

    3,300,491

    4,227,842

    4,049,654

    Annualgrowthrate

    -1.94%

    9.00%

    10.91%

    24.03%

    30.16%

    -2.28%

    Note:Sectoralconsumptiondataofc

    oalismostlynotavailable,exceptforpowersectorandhas,therefore,beene

    stimated.

    Estimatedbydeducingotherusesof

    indigenouscoalfromthetotalproduction.

    Includingindigenousaswellasimpo

    tedcoal.

    Importedcoal/cokeusedascokeinP

    akSteel.

    Source:CementFactories.D

    G(Minerals),F

    BS,PakSteel,PMDC,W

    APDA

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IAR- 7 -

    Table - 9

    Comparative Transport Cost of Gas,

    Furnace Oil and Imported Coal

    in US$ 15.00 PMT

    Cost per KCAL of South Africa

    Coal at US$ 60.00 CNF Rs 1.08 per KCAL

    Gas price per

    KCAL at revised tariff Rs 1.18 per KCAL

    Furnace Oil per KCAL Rs 1.80 per KCAL

    To speedup work on coal mining in Sindh the

    Federal Government has set up a Thar coal mining

    company to make use of vast reserves for power

    generation. The federal government will bear 80

    percent of the cost while the rest will be covered by

    the Sindh government. The company would undertake

    mining projects for power generation, which is

    presently headed by additional secretary petroleum.

    After two foreign companies, a US and a

    Chinese, withdrew from coal mining in Thar, the

    Federal Government has decided to undertake the

    mining and power generation projects by itself to meet

    the future energy needs of the country. The companies

    withdrew because of problems related to shortage

    of surface water in the area and tariff dispute with

    Wapda.

    The 175 billion tons of total coal deposits in Thar

    have been divided into six mining blocks. With a view

    to set up coal-fired plants the lease has been granted

    to two local firms, Hassan Associates and Associated

    Group.

    The Sindh Coal Authority has decided to carry

    out a hydrological study to explore underground or

    surface water resources required in abundance for

    Table - 8

    Coal Imported by Sea Trade Group (the main importer of coal)

    2002-2006

    (Ton)

    Country 2002 2003 2004 2005 2006 (estd)

    South Africa 405,675 393,498 80,000 312,400 450,000

    Indonesia 87,998 330,930 611,000 1,213,000 1,500,000

    Chinese Nil 164,882 844,000 431,000 400,000

    Australia Nil Nil Nil Nil 80,000

    Total 581,671 889,250 1,535,000 1,956,400 2,430,000

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    INDUSTRIAL ADVISORY REPORTS

    IAR- 8 -

    Figure - 2

    Coal Consumption

    Total 4.05 Million Ton

    2000-01

    Figure - 1

    Sector-wise Coal Consumption

    Total 7.71 Million Ton

    2005-06

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IAR- 9 -

    coal mining and human consumption. The ministry

    has reserved the entire coal deposits in Thar for power

    generation and miners are restricted to sell the coal

    in the local market.

    The ADB has initially allocated a sum of $5

    million for carrying out studies in the Thar coal area

    producing electricity and has asked the Sindh ministry

    of minerals to submit schemes eligible for banks

    financing. The amount will further be increased, when

    the ministry submits detailed schemes for the

    development and mining of coal deposits.

    The ministry has, so far, signed eight MoUs with

    the private sector companies, including a Chinese firm

    for mining coal for setting up power plants in the

    province.

    However, the success of these projects would

    depend on the tariff offered by Wapda to these

    companies for the purchase of power, water

    availability and security of foreigners working here.

    As oil prices are increasing in the world market

    it seems that in future coal would be the principalsource of energy, all over the world as well as in

    Pakistan.

    In 1992, as the news of Thar coal reserves

    spread globally, a number of foreign and local

    investors showed interest in the exploitation of Thar

    coal resources for power generation. In response to

    the Energy Policy, Consolidated Electric Power Asia

    Ltd of Hong Kong signed a Memorandum of

    Understanding (MOU) for developing a 1,425 MWcapacity integrated power project based on Thar

    coal, but could not be materialized. However, related

    activities on the part of the government continued and

    it formulated a liberal Policy and a favorable

    atmosphere for power generation for using indigenous

    coal.

    A coal exploration project to demarcate at least

    four specific tracs/blocks, through close spaced

    drilling was finalized by GSP. The project was aimed

    to explore and evaluate coal resources in four blocks

    consisting of about 50 sq km each in Thar area for

    power generation.

    Setting coal-based power projects exploiting

    large Thar coal reserves has especial significance in

    the present energy scenario, because they would

    reduce countrys dependence on imported furnace

    oil, besides providing cheaper electricity.

    Coal Consumption

    Presently, Coal is being used only 1.9 percentfor power generation in Pakistan compared to 90

    percent in Poland, 77 percent in China, 58 percent

    in Germany, 54 percent in India, 50 percent in

    Australia and 38 percent in Russia, figure - 1 and 2.

    Thar Coal Reserves

    The 175 billion ton coal reserves of Thar

    coalfields are spread over an area of 9,000 to 10,000

    square kilometers that has been divided into four

    blocks of coal demarcation for administrative and

    logistic purposes.

    The presence of coal in Thar was first indicated

    in the drilling for fresh water by British Overseas

    Agency (BOA) in 1988 near the village of Khario

    Ghulam Shah, about 15 km east of Islamkot. This

    lead to a modest 4 bore hole coal test drilling

    programme by GSP/USGS, which confirmed thepresence of the thickest coal beds, yet found in

    Pakistan, with a maximum thickness of 30 meters of

    coal.

    Another 10 test holes were drilled by John

    T.Boyd, under a contract, by the end of 1993 for

    getting data for determination of mining engineering

    parameters. GSP/USGS drilled 3 additional bore

    holes in January, 1994.

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IAR- 10 -

    Table-10

    TharCoalReserves/Resources

    aso

    nJune30,

    2006

    Specific

    Reserves/Reserves(MillionTon)

    Block/Field

    Area(Sq.km)

    DrillHoles

    Measure

    Indicated

    Inferred

    Hypothetical

    Total

    Resources

    Resources

    Resources

    Block-I(Sinhar

    Vikian-Varvia)

    122.0

    41

    620

    1,918

    1,028

    -

    3,566

    Block-II

    (SingharoBhitro)

    55.0

    43

    640

    944

    -

    -

    1,584

    BlockIII

    (SalehJoTar)

    99.5

    41

    411

    1,337

    258

    -

    2,006

    BlockIV

    (SonalBa)

    80.0

    42

    637

    1,640

    282

    -

    2,559

    Sub-Total

    (BlockI-IV)

    356.5

    167

    2,308

    5,839

    1,568

    -

    9,715

    RestofThar

    coalfield

    8,643.5

    50

    392

    3,556

    49,138

    112,705

    165,791

    Total(Thar

    coalField)

    9,000.0

    217

    2,700

    9,395

    50,706

    112,705

    175,506

    MineableReserves:

    60%ofMeasuredReserves

    MeasuredReserves:

    Havingahighdegreeofgeologica

    lassurance,coallieswithinaradiusof0.4kmfromapointofcoalm

    easurement.

    IndicatedReserves:

    Havingamoderatedegreeofgeologicalassurance,coallieswithinaradiusof0.4kmto1.2kmfromapointof

    coalmeasurement.

    InferredReserves:

    Havingalowdegreeofgeologicalassurance,coallieswithinaradiusof1.2to4.8kmfromapointof

    coalmea-

    surement.

    HypotheticalResources:

    Undiscoveredcoalresources,generallyextensionofinferredinwhichcoalliesbeyond4.8kmfromapointofcoal

    measurement.

    Source:GeologicalSurveyofP

    akistan.

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    IAR- 11 -

    Location

    The Sinhar Vikian-Varvai Block is situated about

    15 km east of Islamkot, which is 45 km west of Mithi,

    a town on Mirpur Khas-Nagar Parkar route, in TharDesert of Sindh Province. The Thar Desert of

    Pakistan is a part of much larger desert extending to

    the north and east into India and is bounded on the

    west by Indus River flood plains.

    Accessibility

    The area is accessible by metalled road from

    Karachi up to Mithi, via Hyderabad Mirpur Khas

    Naukot and via Thatta Badin Naukot at an

    approximate distance of 410 km. From Mithi onward

    there are sandy tracks to be covered by 4x4 wheelers.

    The rail link from Hyderabad is up to Naukot about

    50 km, from Mithi.

    Quality

    The studies confirmed that the Thar Coalfield

    has lignite B in rank with an average heating value of

    5333 Btu/lb having 1.57 percent sulphur, and 8.83

    percent ash. Average moisture is 48.57 percent. The

    shallowest coal is at a depth of 137.04 meter, while

    the deepest is at 244 meters. The age of Thar coal

    ranges from Paleocene to Eocene.

    Initially, the 50 sq.km area of first block was

    selected in Sinhar Vikian-Varvai for drilling of close

    spaced holes. The work was started during the monthof July, 1994 and completed in June, 1995. During

    this period a total number of 41 bore holes, 29 cored

    and 12 non-cored, were drilled with an average depth

    of 250 meters per hole. Out of the total 29 cored

    bore holes average of 80 meters the upper part was

    non-cored holes and rest was cored. In the upper

    non coring part representative samples were collected

    after every 3 meter interval.

    The cumulative drilling was 9674.63 m. Another

    12 non-cored bore holes were drilled by a private

    contractor with an average depth of 250m.

    Figure - 3

    Per Capita Availability

    (TOE)

    Coal quality is determined through chemicalanalysis as well as petrographical studies. The

    chemical studies were based on the proximate analysis

    as well as Btu/Lb values and sulphur percentages.

    The petrographic studies were undertaken to find out

    the maceral percentages of coal. Very low strength

    materials comprise the strata in southern Thar

    coalfield.

    Geotechnically they can be classified as very stiff

    soil. Principles of soil mechanics can be applied in

    the slope stability analysis because of the absence of

    any geological discontinuity in the strata except the

    presence of thin horizontal bedding planes. Top sand

    cover (extending up to more or less 60 meter below

    the surface) and the presence of the incompetent

    layers of uncemented sand and clay shale in the strata

    call for careful analysis of stability and design for

    excavation.

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    IAR- 12 -

    Computation of Coal Reserves

    For calculating Measured and Indicated

    reserves reliability circles are drawn with 0.4 and 1.2

    km. radio respectively Measured reserves aroundeach drill hole was calculated separately.

    The Indicated reserves areas of all the drill holes

    overlap the adjoining drill hole areas, due to close

    spaced drilling. Indicated reserves were computed

    by multiplying total indicated resources area with the

    average of cumulative thickness of coal the specific

    gravity. The overlapping part of the Measured and

    Indicated categories were divided into two halves

    and the overlapping area calculated by graphicmethod.

    The Inferred reserves were computed on the

    basis of the total area of the block and then subtracting

    the area covered by the Measured and Indicated

    reserves categories. Average specific gravity of the

    coal and average of the cumulative thickness were

    used for the purpose of reserve computation.

    Description of Reserves

    The total estimated coal reserves of all categories

    of this block are 3.56 billion ton. The breakup of

    different categories of reserve is as under;

    1. Measured Reserves 620.42 million ton

    2. Indicated Reserves 1918.06 million ton

    3. Inferred Reserves 1028.43 million ton

    The Indicated reserves are 1918 million metric

    ton covering an area about 65.7796sq.km, while the

    Inferred reserves are 1028 million metric ton

    covering an area of about 35.27sq.km. The

    parameter for the computation of Indicated and

    Inferred reserves are different from the Measured

    reserves. In this case, average cumulative coal

    thickness of the drill holes have been used rather than

    coal bed wise.

    Coal Chemistry

    The chemical and pictographically

    characterization of coal of Sinhar Vikian-Varvai is

    based on the samples of coal of four bore holes.

    Heating Values

    The average heating values of Thar coals is 5333

    Btu/lb and the coal is Lignite B in rank according

    to ASTM standards, indicates report of IJSGS 1994.

    The available heating values of Sinhar Vikian-Varvai

    block-I are slightly higher than the general Thar coal

    and falls in range of Lignite A - H. However, as

    received values are more important in the sense that

    the coal is used as dug out from the ground. The

    heating value based on MMM Free (moist, mineral

    matter free) of Thar coalfield are on the average,

    5747 Btu/lb and those of Sinhar Vikian-Varvai Block

    are 6866 Btu/lb.

    Ash

    The average value of ash in Thar coalfield isaround 8.83 percent. This shows incombustible

    inorganic residue when coal is burnt and represents

    the bulk of mineral matter after the volatile

    compounds arc driven off (CO2, 0

    2and H

    2O). Coals

    with high ash contents are generally less suitable for

    utilization. The ash content is approximately 8.17

    percent which is not much different than the overall

    average of the coal field. However, generally the ash

    content is less in the thick coal seams which is a

    redeeming factor.

    Fixed Carbon

    Fixed carbon is not determined directly but is

    simply the difference between the sum of other

    components (moisture, volatile matter, ash) and 100

    percent of an air dried coal. Fixed carbon content is

    used as an index of yield of coke on carbonization.

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    IAR 71 Coal/Power-III Sep 1-15, 2007

    INDUSTRIAL ADVISORY REPORTS

    IAR- 13 -

    The fixed carbon of Sinhar Vikian-Varvai block

    ranges from 18.72 to 21.38 percent, on as received

    basis while the average value reported, on as

    determined basis, is around 20.38 percent.

    Volatile MatterThis is the component of coal minus the moisture

    which is liberated at high temperature in the absence

    of air. It can be liberated either from organic matter

    or mineral impurities and this difference should not

    be overlooked. The weighted average of volatile

    matter in Sinhar Vikian-Varvai block received basis

    is 31.15 percent.

    MoistureThe moisture can be surface moisture,

    hydroscopic moisture decomposition moisture or in

    the form of mineral moisture. The weighted average

    of moisture in Thar coalfield is around 48.57 percent

    which is almost half of the coal weight. The distribution

    of moisture pattern is random. In the Sinhar Vikian-

    Varvai block the average moisture content, on asreceived basis, is 40.10% which is slightly less than

    the average value of the general coalfield.

    As the coal classification progresses the contents

    of oxygen and hydrogen are reduced and carbon is

    increased they can be used as rank indicators. Except

    nitrogen the other elements i.e. oxygen, hydrogen and

    sulphur are also found in the mineral matter contents

    of coal beds, hydrogen and oxygen are also liberated

    from the moisture contents.The percentage of nitrogen is important to

    indicate the pollution possibility of coal on

    combustion.

    SulphurSulphur can occur as organic sulphur in the

    hydrocarbon compounds of the coal, as sulphide

    minerals such as pyrite etc., or in the form of calcium

    sulphate. The total sulphur contents in the Sinhar

    Vikian-Varvai coal are reasonably low. Sulphur is used

    as a pollution indicator. Sulphur can give rise to

    erosion and damage boiler besides causingatmospheric pollution. The weighted average sulphur

    content of analysed bore holes in the investigated

    block on as received basis is 1.37 percent.

    However, no definite pattern of sulphur constant

    is observed in Thar area but in the thickest beds the

    sulphur content is on the lower side. The sulphur

    contents in Lakhra and Sonda area are generally

    higher than the Thar area. In Lakhra the total sulphur

    contents range from 2 to 7 percent and in Sonda-

    Thatta area from 0.05 to 5.00 percent and they are

    generally comparable.

    Coal Petrography

    Coal petrography is a comparatively recent field

    of science which characterizes the coal quantitatively

    with the help of microscope to predict its behaviour.

    These scientific studies were not adopted in the

    characterization of Pakistans coal resources till 1988.

    Therefore, it is desirable to introduce the basic

    concepts and approach with reference to Sindh coal,

    especially coals of Thar area. The basic purpose of

    coal characterization thorough petrology/petrography

    is necessary to describe its constituents, to determine

    its properties and interpret its occurrence and

    environments of deposition.

    Coal macerals are classified into three groups

    on the basis of their morphology and physical and

    chemical characteristics. These groups are; (a)

    Vitrinitc, (b) Inertinile, (c) Litinits. The classification

    for hard coals (bituminous) and soft/brown coal

    (lignite to sub-bituminous) is different but the main

    difference is in the Vitrinite group. In brown coals it

    is called Huminite group a precursor ofvitrcimte. The

    brown coals are mostly ofCenozoic age and formed

    by angiosperm plants. The hard coals are mostly of

    Paleozoic age and formed by gymnospcrm plants.