Sindh Engro Coal Mining Company and Meezan Bank Limited Partner to Expand Thar Block II Mine

Strategic Insights -

As part of its ambitious plan to strengthen Pakistan's energy security, Sindh Engro Coal Mining Company (SECMC) and Meezan Bank Limited have signed an Islamic Facility Agreement to fund the Phase III mine expansion of the Thar Block II project. This partnership, led by Meezan Bank Limited, brings together a syndicate of United Bank Limited, Askari Bank Limited, Sindh Bank Limited, and Pak China Investment Company Limited to provide Islamic financing for the project. The expansion aims to scale up coal production from 7.6 million tons per annum to 11.2 million tons per annum, further increasing the country's energy generation capacity.

Key Takeaways:

  • The Phase III mine expansion of the Thar Block II project aims to increase coal production from 7.6 million tons per annum to 11.2 million tons per annum.
  • The project will be funded through an Islamic Facility Agreement signed between SECMC and Meezan Bank Limited, led by a syndicate of four banks and one investment company.
  • The expansion will enable SECMC to supply low-cost electricity to over 3 million households, contributing to foreign exchange savings of approximately $1.6 billion since inception.
  • The Thar Coal Power plants have consistently ranked among the top positions on the economic merit order issued by National Transmission and Despatch Company (NTDC).
  • The partnership marks a significant milestone in SECMC's vision to energize Pakistan's future through world-class, sustainable mining.
  • CEo Amir Iqbal acknowledged the support of the Government of Sindh, Meezan Bank, and all stakeholders involved in the project.

Statistics:

  • 7.6 million tons per annum: Current coal production from Thar Block II.
  • 11.2 million tons per annum:Coal production target for Phase III mine expansion.
  • $1.6 billion: Foreign exchange savings contributed by SECMC since inception.
  • 3 million: Number of households currently being supplied with electricity by SECMC.
  • 1320 MW: Total power generation capacity of Thar Block II.
  • 660 MW: Capacity of the Lucky Electric Power Company Limited (LEPCL) power plant to be converted to Thar Coal.

Sources:

  • Meezan Bank Limited
  • Sindh Engro Coal Mining Company (SECMC)