GOVERNMENT OF SINDH

MINES & MINERAL DEVELOPMENT

DEPARTMENT

PC-II

DEVELOPMENT OF
OPEN-CAST MINING IN
THAR COAL FIELD

ESTIMATED COST
RS.5000.00 MILLION

SINDH COAL AUTHORITY

(GOVERNMENT OF SINDH)
 PC-II

1. Name of Project Development of Opencast Mining in Thar

Coalfield.
2. Authorities Responsible:
i) Sponsoring Mines & Mineral Development Department,
Government of Sindh

ii) Executing Sindh Coal Authority will coordinate

implementation of the study with the consulting
company(s) engaged through ICB
(International Competitive Bidding) for
designing, planning, development and
operation & maintenance of an opencast coal
mine at Thar coalfield.

3. Location of the Project District Tharparkar, Sindh

4. Capital Cost of the Project Rs.6000.00 Million

Rs.120.00 million (consultancy charges @ 2%

of the estimated cost for preparation of TOR
and designing and costing of open-pit mining)
5. Proposed date of After approval of PC-II, the scheme would
commencement and
require a period of 36 months for its
completion.
completion and start of mine operation.
6. Agencies other than The scheme would be carried out in
sponsoring authority in the
consultation with concerned federal
project.
government agencies / Geological Survey of
Pakistan by engaging a consultant firm through
ICB (International Competitive Bidding).
7. Objective of the study The main objective of this project is to develop
a surface mine (open pit mine) for extraction of
coal which are buried under the surface of
earth and in this connection mining will be
carried out in the area having less overburden

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and better seam thickness. Study including
surface Mine designing and planning and
development of Open Pit / Open Cast Mine at
Thar coal field area for extraction of around
6.00 million tones of coal per annum (mine
strip ratio 7.1:1) or as suggested by the
consultant to meet fuel requirements of 1000
MW mine mouth power station per ton pit head
extraction cost and selling prices of coal,
recommend appropriate technology based on
evaluation of various technologies and
reasoning therefor.
Explored areas are available for carrying out
the mining activities / operations at Thar coal
field area which has been explored by
Geological Survey of Pakistan and Sindh Coal
Authority. However, the consultants will be at
liberty to select and recommend any other
area for the study, if considered more suitable
by them. Study shall further more determine
the most economic and efficient technology to
operate the mine. The investigations will also
take into consideration the environment
aspects. Investigations will determine the mine
mouth cost and the delivered cost per tonne of
Thar coal i-e mine mouth cost and selling price
and also prepare a detailed financial analysis
which determines the cost of development and
operation of the mine and the finance-ability of
the mine development.

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8. Scope of the study Scope of work for the Project comprises all
activities necessary for the following:

(a) Design, plan, develop, finance, insure,

own jointly with Government of Sindh, operate
and maintain open cast mines sufficient for [30
years] producing 6 (six) million tons per annum
“as received” coal;

(b) obtain all necessary permits, licenses,

consents and enter into agreements wherever
necessary and pay all necessary fees,
royalties, local duties;

(c) supply and sell guaranteed coal

quantities at the coal sell point within the coal
field boundaries identified by the sponsors and
agreed by Government Sindh to agency/entity
identified by Government of Sindh, at the rates
as mentioned under Memorandum of
Information (Annexure-II);

(d) initiate environment mitigating

measures in accordance with the Pakistan
Environmental Protection Agency (PEPA) Act,
1997, inter alia, relating to environmental
protection, environmental impact and social
soundness assessment, and all the
requirements of the legislation and
environmental guidelines and standards issued
under or pursuant to the said Act;

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(e) Settlement of displaced population in
accordance with internationally accepted
norms;

(f) refilling the used mines to make it to a

cultivatable and habitable grade;

(g) Any other scope not included herein but

subsequently agreed between sponsors and
Government of Sindh

(h) transfer the developed mines and drying

plant at the end of [30] years to Government of
Sindh free of cost and free of all liens and
encumbrances.

Phase-IV : Mining stage :

The coal will be extracted by using surface
mining method “opencast”. In loose strata, only
drilling blasting will be adopted. Special care
shall be taken for controlled blasting to
minimized vibration to avoid rock rupturing and
to prevent from slope failure. Open pit
optimization, output and man power planning,
quality control and conservation, mine
scheduling, slope stability analysis, productivity
and maintenance of Heavy Earth Moving
Machinery, inpit crushing and conveying,
continuous surface mining, high angle
conveying. Mine and in all production
schedules the annual waste volumes have
been adapted to a certain extent in order to
smoothen the overburden removal capacity

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 and thus the number and size of equipment
needed over the different phases of mine
development and mine position maps have
been prepared for the basic alternatives to
show the mine advance during the project
lifetime of about 30 years.

9. Administrative control The project will be overall monitored by

Director General, Sindh Coal Authority and will
be supervised by a Project Coordinator at site -
nominated by the Chairman, Sindh Coal
Authority Board.

A Steering Committee to monitor the

implementation of the study would be
constituted with the approval of Sindh Coal
Authority Board.
10. General Description The Project is located at 24º 43’45” North
Location of the Project
Latitude and 24º49’30” and East Longitude 70º
17’35” - 70Vº 24’30”. Its mean altitude above
sea level is 90 meters. Oct-Mar with mean-
lowest temperature of 16.4º C are the cooler
months, and Apr-Sep with mean-highest
temperature of 43.8º C are the warmer
months. Accessibility is through a 418
kilometers road system from Karachi. Route of
the road is via Thatta, Badin and Mithi. The
Project area is sparsely populated and the total
population is about 1000 souls.

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Coalfield Descriptions The huge Thar coalfield is spread over an area
of about 9,100 sq. km. The USGS & GSP
investigated 4130 sq. km. and Sindh Coal
Authority investigated 130 sq. km. through M/s.
China Northeast Coalfield Geological Survey
Bureau. Besides, exploration for development
of additional two blocks is also under progress.
Maximum cumulative thickness of coal
bed/seam is 36 meters. Whereas, the thickest
coal seam is 22.18 meters between 150 and
203 meters depth. Thickness of overburden
varies from 114 to around 200 meters.

The weighted average chemical analysis of

Thar coal, on as received basis, is as follows:

Moisture 46.77%
Ash 6.24%
Volatile Matter 23.24%
Fixed Carbon 16.66%
Sulphur 1.16%
Heating Value 5,774 BTU/Lb.

Thar lignite is suitable for electric power

generation and would a less expensive and
sustainable source for power generation

General Perspective Thar coal being the biggest deposit in the

country is receiving priority attention to meet
fuel requirements of the country. The required
infrastructure including metalled roads, water
supply line, electricity, optical fiber line
(telephone) is available upto coalfield. Besides,
a Broad-gauge Railway Line from Varvai-
Islamkot-Mithi-Naukot-Mirpurkhas-Hyderabad

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 a less expensive and commercially feasible
option, assessment of water resources of Thar
coalfield with reference to long-term water
requirements of Thar coal development
program are also receiving priority attention to
support its smooth exploitation.
To facilitate foreign investors Thar Lodge at
Islamkot is under construction and survey for
airstrip at village Sive-jo-Tar and Bhope-jo-Tar
stand completed.

Pakistan governmental aim is to increase its

industrial output over the next decades. Major
energy resources with a high potential to
support the energy production shall be
implemented in that regard to substitute
imported fuel for power generation and further
more include positive effects on employment,
infrastructural development and the national
trade balance. Keeping in view the energy
shortfall and increasing demand of the country,
and to attract the private as well as foreign
investment for development of Thar coal the
mining is considered essential so as to take
the buried coal out and could utilize for power
generation to meet the shortfall of electricity in
the country and turn the industries on coal.
Justification Sindh has been endowed with a natural gift of
coal, which is 99% of the country’s total coal
deposits. Being less expensive, a reliable
sustainable source for power generation, need
to be developed and given priority.

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 Share of coal globally in power generation and
as a primary fuel, is 38% and 26%
respectively. For considering indigenous coal
based projects, it is a pre-requisite to
determine suitability of use of coal as a raw
material/fuel in industries etc., of coal mining
per tone pit head coal extraction cost and
selling price of coal, else, this deposit, a
national treasure, will remain buried for ever.

Potential benefits of Thar Benefits of an indigenous fuel are countless.

coalfield development
The major benefits of development of coal as a
fuel, would be:

Sustainable, reliable and less expensive

indigenous fuel (coal)
Saving in foreign exchange otherwise required
for import of oil as a fuel including for power
generation

Employment generation effect and massive

economic activity

Step towards a self-reliant economy

Investment in coal mining will generate

employment and economic activity in the
country; whereas, money spent on imported
fuel would generate economic activity in the
fuel producing / exporting countries.

Congestion caused at the ports in handling of

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 import of oil and impact of transportation of oil
from ports to project sites also, would be
avoided by developing coal as a fuel including
for power generation.

11. Physical and Financial
planning of the project.
12. Requirement of material
and Personnel
a) Details of personnel
required (gazetted and non-
gazetted)
Terms of reference and cost break-up would
be prepared by a consultant.
Requirement of personnel would be prepared
on the recommendations of the Consultant.
Applications for pre-qualifications invited and
evaluated by a committee.

b) Break of the project Cost break-up would be prepared by the

consultant.

Prepared by (Muhammad Hassan Brohi)

Deputy Director (Tech.)
Sindh Coal Authority

Verified by (Saqib Bashir Dahar)

Secretary
Sindh Coal Authority

Checked by (Mumtaz Ali Qureshi)

Director General
Sindh Coal Authority

(Muhammad Younus Dagha)

Approved by Secretary
Mines & Mineral Development Department
Government of Sindh

Karachi
September 29, 2008

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