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OOil & il & GGas as CConferenceonference

FFebruary 18ebruary 18--20, 200720, 2007

HHarnessing of arnessing of IIndigenous ndigenous CCoal oal RResources esources GGenerationeneration

GOVERNMENT OF SINDHGOVERNMENT OF SINDHMINES & MINERAL DEVELOPMENT MINES & MINERAL DEVELOPMENT DEPARTMENTDEPARTMENT

(SINDH COAL AUTHORITY)(SINDH COAL AUTHORITY)

: HOFRP H�WR�2IILFLDO�: HEVLWH�RI �*RYHUQPHQW�RI�6LQGK

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3

(Billion Tonnes)

Lakhra, distt. Dadu 1.328

Sonda, distt. Thatta 7.112

Metting-Jhimpir, 0.161Thatta

Badin 0.016

Thar 175.506

Total 184.123

Province of Sindh comprises 98% of total coal deposits of the country (184.658 billion tonnes)

Coal Deposits of Sindh

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Characteristics of Sindh Coalfields

Lignite “B”5,7741.166.2416.6623.4246.77Thar

Lignite to sub-bituminous

4622to

7552

4.7to 7.0

18 25.2 28.0 28.9 Lakhra

Lignite A to sub-bituminous

6740 to

11100

3.4 to7.4

8.2 to

14.6

31.0 to

36.3

29.8 to

39.8

15.4 to

29.8

Metting-Jhimpir

Lignite A to Bituminous C

6762 to

11029

1.0 to

2.82

1525.227.934Sonda-Jherruk

Calorific Value (Btu/Lb)

Sulphur%

Ash%

Fixed Carbon

%

Volatile Matter

%

Moisture%

RankAnalysisCoalfield

Sindh Coal is ranked as Lignite, which is being used in World mainly for power generation.

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Thar Coalfield: Highlights

l Geological Survey of Pakistan (GSP), discovered huge deposits of coal in 1992 at Thar during the research program assisted by United States Geological Survey (USGS)

l Spread over an area of more than 9100 square kilometers with dimensions of 140 Km (north-south) 65 km (east-west)

l Possess 175.506 billion tonnes of coal

l Thar coal deposits are sufficient to meet fuel requirements of the country for centuries and would generate about 100,000 MW of electricity

l Weighted chemical analysisØ Coal Quality Lignite A-BØ Moisture (AR) 43.24% to 49.01%Ø Ash (AR) 5.18% to 6.56%Ø Volatile Matter (AR) 26.50% to 33.04%Ø Fixed Carbon (AR) 19.35% to 22%Ø Sulphur (AR) 0.92% to 1.34%Ø Heating Value Btu/Lb.

§ As Received 5780 to 6398§ Dry 10723 to 11353§ DAF 11605 to 12613§ MMM Free 6101 to 6841

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Thar coalfield - map

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Thar Coalfield Blocks

Block -VIBlock -V

Shenhua

AES40 sq. km.

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Block-wise deposits

12.597237486.63TOTAL:

1.3823563.45Block-V

1.5003566.68 Block-VI

2.5594280.0BLOCK-IV

2.0064199.5BLOCK-III

1.5844355.0BLOCK-II

3.56641122.0BLOCK-I

BILLION TONNESDRILL HOLES (NO.)

SQ. KM.BLOCK No.

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Infrastructure at Thar coalfield

l Electricity: 11 kV feeder emanating from Islamkot Grid Station to Thar Coal Project with 200 watts transformer and energized

l 500 kV transmission line: Alignment of 500 kV transmission line has been finalized by WAPDA

l Telephone: Optical fiber cable laying/installation of system between Mirpurkhas to Mithi exchanges completed. 100’ high guide tower (1” dia) is to be installed at Thar coal site with DRS equipment. Telephone facility is available up to Islamkot

l Water supply: Water supply line from Mithi to Islamkot and Islamkot to coal mines (Thario Halepoto) has been completed and water reservoir of 6 lac gallons is available at coal mine site. 03 lac gallons/day will be available at site (Block-II)

l In addition, 04 reverse osmosis plant for desalination of water to provide potable water to investors and local people has been installed at Sobharo Shah, Khetlari, Islamkot and Mithi.

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Continued

l Construction of Airstrip: The scheme “Construction of Airstrip at Islamkot” is under implementation

l Railway line: Pakistan Railway conducted feasibility study of railway line at Thar coalfield to facilitate the transportation. The railway route has been approved by the Chief Minister, Sindh.

l Roads have been completed upto coalfield in Thar and also construction is going upto Nagarparkar Granite area, so as to make Thar coalfield accessible through road network.

l Town Planning of Islamkot: Town Planning of Islamkot” has also been sponsored for rehabilitation/resettlement of the villages located within the coalfield vicinity.

l Displaced population will be relocated by providing them all necessary facilities in the nearest township.

l Thar Lodge: The scheme for construction of 20-bedded accommodation to facilitate foreign and local investors at Islamkot is under progress.

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Coal Power Projects Under Process

l Thar Integrated Coal Project of Shenhua 2 x 300 MWGroup of China

l Integrated coal mining and powerproject at Thar by Associated Group 2 x 250 MW

l Thar Coal Power Project of Hasan Associates 1000 MW

l Sonda-Jherruk Coal Power Project of CMC of China 250 MW

l Lakhra Coal Power Project of Fateh Group 200 MW

l Sonda-Jherruk Coal Power Project of Dadabhoy 200 MW

l Sindh Carbon Energy Limited 150 MW

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Coal Feasibility Studies conducted at Thar

6.5 US cents levelized tentative tariff for 25 years

Economical mine of 15 million tones annually

In October, 2006 on basis of 2004 study

From 6.2 to 5.75 US cents levelized tariff for 25 years

3.5 million tonesShenhua Group of China (2004)

42.50 (specific value 7.18 US cents kW/h)

With Bucket Wheel Excavator

36.50 (specific value 6.90 US

cents/kWh)

6 million tones with shovel/truck

RWE of Germany (2003)

40.607.0

68.503.5

88 per ton2.5John T. Boyd of USA (1994)

Estimated realization (US $)

Annual production (million tones)

Company

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Coal in Electricity Generation

l USA 52.2%l Australia 76.9%l Germany 52.2%l China 77.5%l India 70.1%l S. Africa 92.2%l Poland 94.7%l Czech Rep. 61.8%l Greece 60.4%l Denmark 55.1%l Indonesia 39.7%l Kazakhstan 69.9%l World Average 39%

Source: World Coal Institute, London, October, 2006

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Lignite - Products

Electricity 860 kWh

Briquettes 400 kg

Pulverized lignite 360 kg

Fluidized-bed lignite 380 kg

Coke 250 kg

Substitute natural gas 190 m3

Fuels 160 l

Synthesis gas 580 m3

Quality of Sindh Coal is also Lignite containing heating value up to 8,300 Btu./Lb.

Source: RWE Power International of Germany

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Coal Derives much of current global economic development

l In Pakistan, share of coal in energy mix during decades declined from 68% to 35% in 1958 and 5% in 2002. This is to be increased keeping in view the following reasonsl Sindh lignite reserves are abundant and suitable for power generation as compared to lignite being used

in the World for electricity generation. It is a cheap dependable energy source and would meet countries energy requirements for centuries.

l Necessary infrastructure to support accessibility and availabili ty of coal/lignite is available, which includes road/transport, communication, water and energy utilities, etc.

l Indigenous resource and free from uncertainties of fuel supply and associated danger of dictation of oil prices by oil suppliers.

l Oil deposits are limited with high cost – which is increasing day by day and will continue to increase. Payment in foreign exchange.

l Gas deposits of the country are depleting and continue to deplete and it has other important uses, such as fertilizer, etc

l Main fuel for electricity generation in USA, Germany, China, India, South Africa, Australia, much of Central Europe, etc.

l Provide over 23% of global primary energy needs and generates about 39% of the world’s electricity.

l Global primary coal consumption will rise at an average annual rate of 1.4% up to 2030. In all regions, coal use will become increasingly concentrated in power generation, which will account for almost 90% of the increase in demand between 2000 and 2030 – source World energy outlook 2002.

l Play integral role in the economic and social development of many countries. Coal will play in addressing the three pillars of sustainable development – economic, social and environmental, needs no elucidation

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Vision for Development of Coal Resources

l Pakistan has huge deposits of low rank, good quality lignite (coal), suitable for power generation, gasification and other purposes

l Pakistan is deficient in power generation and wants to generate energy from indigenous resources, specially from coal to meet the requirements

l Clean coal technology, environmental friendly power generation on coal are coming up.

l Policy is to facilitate the investors and offer fiscal and financial incentives/concessions for development of its indigenous resources

l Government of Pakistan encourages establishment of power projects in public-private partnership. The incentives/concessions available to private power projects will also be available to projects implemented under public-private partnership

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Continued

l Share of coal in country’s energy mix is to be increased at least 19% by 2030 and 50% by 2050.

l To increase coal production from 4.00 million tones to 20 million tones in year 2015

l Maximize utilization of coal resources to increase demand of energy and local industry

l Active participation of private sector in coal based projects. l Sustainable supply of energy through coal and competitive

price to all sectors of economy.

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Areas for Private Investment

l Coal MininglMine-mouth Power Generation based

on Thar Coall Coal Briquetting and Pulverizationl Coal Washingl Coal Gasification (surface/underground)

l Extraction of Coal Bed Methane

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THE END