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This presentation was presented by Muhammad Younas in his course work which was compiled and acknowledged by Majid Khattak M.Phil Scholar
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PRESENTED TO:DR. ZULFIQAR AHMED
BY: MUHAMMAD YOUNASCompiled and Acknowledged By:MAJID KHATTAKDepartment of Earth Sciences QAU Islamabad.Email: [email protected] Cell No: +923459288637
Feasibility of Coal Mining in Thar “An alternate source of Energy”
Thar Coal Field Location Map
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Geology of Thar
• The Thar coalfield area is covered by dune sand that extends to an average depth of over 80 meters and rests upon a structural platform in the eastern part of the desert. The generalized stratigraphic sequence in the Thar coalfield area is shown in table. It comprises Basement Complex, coal bearing Bara Formation, alluvial deposits and dune sand.
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STRATIGRAPHIC SEQUENCE IN THE THAR COALFIELD
Formation Age Thickness LithologyDune Sand Recent 14 m to 93 m Sand, silt and clay --------------------------------------------Unconformity-----------------------------------------------
Alluvial Sub-Recent 11 m to 209 m Sandstone, siltstoneDeposits (variable) clay stone, mottled. --------------------------------------------Unconformity-----------------------------------------------
Bara Formation Paleocene to +52 m Claystone, shale,
Early Eocene (variable) sandstone, coal
Carbonaceous claystone --------------------------------------------Unconformity-----------------------------------------------
Basement Pre-Cambrian ------- Granite and quartz diorite.Complex
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Hydrogeology of Thar The hydrogeology study examines the effects of surface
water and groundwater on the mining site. There are no rivers or significant water courses on the mine site or adjoining lands and there are only significant rains in the monsoon season when surface run off will have to be managed.
There are 3 aquifers within the mine site which will require dewatering to enable the mining to proceed to the base of the pit. There is an intermittent aquifer at the base of the upper dune sands which does not contain significant volumes of water.
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• A second aquifer is located in the Bara Formation above the Lignite and extends throughout the coalfield. Again it does not contain significant volumes of water but will require dewatering in advance of excavation to maintain the stability of the pit walls.
• Below the base of the Lignite and confined by the basal granites at depth there is a major aquifer which again extends throughout the coalfield and requires lowering to below the base of the pit to prevent floor heave and other instabilities at the lower levels of the mine.
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• All the waters in the aquifers is slightly saline or brackish and would require treatment for drinking or irrigation and a Reverse Osmosis plant will be constructed to provide the same
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THAR COAL FIELD CROSS SECTION AND BOREHOLE LOG
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Coal’s Significance in Global Energy Scenario
Global energy consumption will rise by 50% by 2030. In non-OECD region, it will rise by 85% (International Energy Outlook Report 2008)
Coal use is likely to grow from 40% to 44%, as a source for power generation, by 2030* due to energy security and price volatility.
Besides use in power generation, various countries have initiated projects to produce Coal-to-Liquids, that entail producing diesel and other liquid products and Coal gasification projects in China, US, India and South Africa.
World Proven Coal Reserves – Over 860 billion tons.* Source IEA Report 2009
World Coal Resources billion tonnes
%age
World Coal reserves 860– Bituminous & anthracite 405 47– Sub Bituminous 260 30– Lignite 195 23
According to Survey of Energy Resources 2010 by World Energy Council
– The use of coal to rise by 60% by 2030.– Coal’s Share in Power generation is set to increase
from 41% to 44% by 2030*
* ( Source- 2010 survey of energy Resources- world energy council) 10
Coal Used in Electricity Generation & Lignite Reserves% age of Electricity
Generated from CoalLignite Reserves Billion
tonnes
South Africa 94 30.15*
Poland 93 1.37
China 81 18.6
Australia 76 37.2
Israel 71 -
Kazakhstan 70 12.1
India 68 4.5
Czech Republic 62 0.98
Morocco 57 -
Greece 55 3.02
USA 49 30.16
Germany 49 40.6
World Average 41 195.38
Pakistan 0.1 186.2*** Sub bituminous & Anthracite reserves only** Thar Coal Resources are 175 billion tonnes Proven Reserve in 9 explored Blocks alone is 20 billion tonnes
( Source,2008, IEA)11
World Power Generation fuel Mix 2008-09
World Pakistan
A Comparison of Power Generation fuel Mix
Hydro 16%
Gas 20%
Oil 6%
Coal 41%
Others 2%
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Demand & Supply Gap Projection for Pakistan
Current Installed Capacity (MW)Project Demand
Gap (MW)Year MW
19,566
2010 24,474 6,577
2015 36,217 18,320
2020 54,359 36,462
2025 80,566 62,669
2030 113,695 95,798
Future Energy Demand Supply Gap is Alarming!Source: Pakistan Electric Power Company (PEPCO)
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Pakistan’s Coal Reserves
SindhSindh186.560 billion tonnesThar 175 billion tonnes
PunjabPunjab235 million tonnes
BalochistanBalochistan217 million tonnes
KPKP90 million tonnes
Azad KashmirAzad Kashmir9 million tonnes
TharThar
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Lignite
Coal
Combustion (Steam)
Gasification
AshTarNaphtaPhenolCatecholsCarbon DioxideDephenolized Cresylic Acid
CH4
CO2
H2
H2S
NH3
CO
H2
EthanolJet FuelDieselPetrolParaffinChemicals (Ethylene Polymers
AmmoniaFertilizerExplosives
Fisher Tropsch Synthesis
Crude Oil - Refinery
Electricity (Steam Turbines)
Coal to Liquid
Source: Syngas and Coal Technology, R & D, SASOL – Mr Johannes Van Heerdeen
Uses of LigniteUses of Lignite
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Social Benefits from Thar Development
Benefit to Economy – Reduction in Power Generation Cost
• NPV of savings from Block II alone is over Rs. 3.2 Trillion
Annual Savings in Foreign Exchange from Thar Block II
• Cumulative savings of over USD 87 Billion from Block II alone
• Net Present Value of USD 31 B discounted at the rate of inflation (US CPI: 3%)
“To develop Thar Coal as a major source of power generation for Energy & Economic Security of the country and as a Hub
of Petro Chemical Industry”
Goal
To generate at least 10,000 MW by 2020
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Vision for Thar Coal
Special Economic Zone• Thar Coalfield is declared as Special Economic Zone, and
the projects of development of Thar (also including coal mining and power generation) declared as ‘Projects of National Security’
Rate of Return• 20% ($ Based) IRR to firms which achieve Financial
Close before 31st December 2015 for Mine & Power Plants based on indigenous coal and additional half a percentage IRR i.e. 20.5% IRR for firms which Financial Close by or before 31st December 2014.
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Incentives for Thar Coal Development
INFRASTRUCTURE AVAILABLE AT THARROAD NETWORK
70 tonnes load carrying capacity metalled road is available up to Coal field area.
ELECTRICITY
11 KV feeder emanating from Islamkot to Thar Coal Project areas with 200 watts transformer is available.
COMMUNICATION
Telephone & Internet communication through Optic fiber cable is available up to Thar Coalfield area.
DRINKING WATER
29 Reverse Osmosis Plants in Thar are available for provision of portable water to residents as well as project staff free of cost.
RESCUE STATION
Rescue Station in coal mining area at Thar coalfield covering an area of 8,200 sq. ft. is completed
LIBRARY
A Coal library is situated at office of Sindh Coal Authority, Karachi.
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TRANSMISSION LINE
NTDC is conducting feasibility study for lying of Transmission Line for evacuation of 10,000 MW from Thar. In the first Phase they are planning to evacuate 1200 MW.
AIRPORT
The GoS has approved a scheme at the cost of Rs.972.070 million for the construction of Airport at Thar for Coal Fields of Sindh by the Civil Aviation Authority.
PROVISION OF HEAVY DUTY ROAD
The W&S Deptt. is upgrading the road from Karachi to Islamkot through Hyderabad- Mirpurkhas- Naukot for facilitating transportation of heavy machinery by Dec. 2012.
RAILWAY LINK
PRACS has been engaged by GoS to prepare feasibility for broad gauge rail link from Port Qasim to Islamkot.
LODGE AT THAR
Lodge at Thar with 20-bedded accommodation to facilitate foreign and local investors is being constructed at Islamkot. PROVISION OF CANAL WATER:
The GoS has planned to construct a water carrier to provide 300 Cusecs water to Thar.
INFRASTRUCTURE PLANNED AT THAR
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1. Coal MiningInvestors interested only in mining may apply
for a mine lease for mining the coal.
2. Integrated Coal & Power Generation ProjectInvestors may also opt for investing an
integrated coal mining and power generation projects.
3. Mine Mouth Power ProjectThar coalfields present best opportunity for
mine mouth power projects in view of the great demand for energy in the country.
Investment Options
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Investment Options
4. Coal Gasification
Investors may propose to convert coal into gas and market the syngas and bye products in open market, or may develop a forward integrated project on any one or more bye products from gasification project
5. Coal to Liquid Projects Investors may propose to convert coal into Liquid and market the byproducts in open market, or may develop a forward integrated project on any one or more bye products from CTL project
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Conclusion• It is clearly established that Thar Coal has immense
potential, not only to meet Pakistan’s primary Energy requirements for Power generation (IGCC, CCPP), Transport fuels (CTL, FTD), Natural gas (SNG), fertilizers, petro chemicals etc ramping up from 2012 to 2030, but sufficient quantities can be produced for bridging the gap in Asian Energy markets.
• Thar Coalfield has not been developed due to incorrect project development approach, which has been based on one, or two 1000 MW power plant set-up.
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Continued……….• It is essential that a new modality be followed now
and a Master Plan be prepared, for full field development and downstream multiple applications based on highest economic returns.
• On successful demonstration of a production mine with proper engineering, mining methodology and analysis of bulk samples, a full Thar coalfield development bankable feasibility and Master Plan will be prepared to undertake the multibillion dollar project in phases from 2010-2030
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Thar today
27www.sindhcoal.gos.pk
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Thar Tomorrow
Thank You