Pakistan - Block-III open-pit mining in Thar Coalfield

The Thar Coalfield is one of the seven largest lignite deposits in the world, with 175 billion tons of potential thermal coal energy for power generation. Divided into 13 blocks, Block II has been under operation for 3 years, and Block I is about to start. Block III spreads over 176.3 square kilometres with about 3.461 billion tons of coal reserves, and the coal seams are about 180 meters thick. The Coal-Power Integrated Project allows power plants to be built nearby. The installed capacity of the power plants reaches 1,320 MW (2 × 660 MW or 4 × 330 MW) and the power generated thereby is owned by local government. The investment in power plants and coalfield is about USD1.2 billion and 800 million respectively. Capital investment accounts for 20%-30%, and the remaining 70%-80% is financed by banks. The government has approved the current feasibility assessment reports, and the mineral rights have been granted by Sindh government. The owner is looking for investors and the return on equity investment is estimated to be 17%-22%.