Sindh Engro Coal Mining Company and Meezan Bank Sign Islamic Facility Agreement for Thar Block II Mine Expansion

Strategic Insights -

Sindh Engro Coal Mining Company (SECMC) and Meezan Bank Limited have embarked on a significant milestone in Pakistan's energy sector, signing an Islamic Facility Agreement to fund Phase III of the Thar Block II mine expansion. The agreement, led by Meezan Bank, comprises a syndicate of United Bank Limited, Askari Bank Limited, Sindh Bank Limited, and Pakistan-China Investment Company Limited. This move aims to boost coal production from 7.6 million tonnes per annum (MTPA) to 11.2 MTPA, enhancing Pakistan's energy security. The agreement marks a significant step towards utilizing domestic resources for power generation, with the potential to convert the 660 MW Lucky Electric Power Company Limited (LEPCL) plant to Thar coal.

Key Takeaways:

  • SECMC and Meezan Bank have signed an Islamic Facility Agreement to fund Phase III of the Thar Block II mine expansion, increasing coal production to 11.2 MTPA from 7.6 MTPA.
  • The syndicate, led by Meezan Bank, comprises United Bank Limited, Askari Bank Limited, Sindh Bank Limited, and Pakistan-China Investment Company Limited.
  • The Thar Block II mine expansion aims to enhance Pakistan's energy security, with the potential to convert the 660 MW Lucky Electric Power Company Limited (LEPCL) plant to Thar coal.
  • SECMC has powered over three million households and contributed to foreign exchange savings of approximately $1.6 billion since its inception.
  • The Thar coal power plants consistently rank among the top positions on the Economic Merit Order issued by National Transmission and Despatch Company (NTDC), making Thar coal the most cost-effective baseload fuel in the country.

Statistics:

  • Coal production increase: from 7.6 million tonnes per annum (MTPA) to 11.2 MTPA.
  • Current power generation: 1,320 MW from Thar Block II.
  • Number of households powered: over three million.
  • Foreign exchange savings: approximately $1.6 billion since SECMC's inception.
  • Ranking on the Economic Merit Order: consistently ranked among the top positions by National Transmission and Despatch Company (NTDC).

Sources:

  • Press release by Sindh Engro Coal Mining Company (SECMC) and Meezan Bank Limited.