www.sindhcoal.gos.pk

Vision

To position Sindh as the power house of the region

MissionTo develop Thar Coal as a major source of power generation for En-

ergy & Economic Security of the country and as a Hub of Petro Chemi-

cal Industry

GoalTo generate at least 10,000 MW by 2020

We offer

• Huge proven reserves with authentic data

• Higher returns for investors

• Business friendly policies & environment

• Excellent incentives, concessions & protections

ii

Thar Coal – The Most Attractive Investment Opportunity 01

Quality of Coal at Thar 02

Investment Status in Thar Coalfield 03

Fiscal Incentives for Development of Indigenous Coal Resources 04

Investment Opportunities in Thar 05

Procedure for Allocation of Blocks 05

Environment & Social Studies 06

Water Master Plan 06

Thar Coal Resources at a Glance 07

Thar Coal & Energy Board - its role & functions 08

Composition of Thar Coal & Energy Board 09

Thar Coalfield Blocks Layout 10

Infrastructure available at Thar 11

Infrastructure planned at Thar 12

Table of Contents

iii

Thar Coal – the most attractive Investment Opportunity

1. World’s biggest lignite reserves

Pakistan’s coal resource potential is estimated to be around 186 billion

tonnes out of which 175 billion tonnes are found in Thar — the largest lig-

nite deposit in the world. Thar Coalfield is located 360 km from Karachi

port in the south eastern arid zone region of Pakistan which is one of the

most peaceful & harmonious area of the country. Thar Coal resources

have an estimated potential of generating 100,000 MW of electricity for

a period of 300 years; thus, providing an opportunity for large scale min-

ing & power generation over a long period of time.

2. Central part of future Energy Mix in Pakistan

To address the persistent energy gap, the large indigenous coal (lignite)

resources at Thar in Sindh Province form an integral part of Pakistan’s

long term energy security strategy. Thar resource has a very good po-

tential to be a viable option for providing dependable indigenous source

of energy. Development of Thar is envisioned to emerge through a part-

nership of government and the private sector, wherein the private sector

would assume investment risk subject to viable commercial market con-

ditions and the government would provide the enabling environment nec-

essary to facilitate such investments.

Thar Coal - Means to Energy Security in Pakistan

1

Thar lignite has a

stripping ratio of 6:1

and heating value of

5,000 to 5,500 Btu/lb

which is better than

many lignite re-

sources being suc-

cessfully used for

mining and power

generation:

• India’s Neyvelli lignite has a stripping ratio of 7:1 and heating value

of 5,200 Btu/lb. Total generation based on Neyvelli lignite is more

than 2,700 MWs.

• Hungary’s lignite has stripping ratio of 9:1 and heating value of 3035

Btu/Lb and power generation above 1800 MWs.

• Germany’s Rhineland lignite having stripping ratio of 4.9:1 and heat-

ing value of 3830 Btu/lb and is fueling power generation of more than

10,200 MW.

Quality of Coal at Thar

Deposit Stripping Ratio (m³ : t) Heating Value (MJ/kg)

Thar 6.6 : 1 11.6

Kosovo 1 : 1 7.8

Rhenish Area, Germany 4.9 : 1 8.9

Hambach, Germany 6.3 : 1 10.5

Hungary 9 : 1 7.1

Greece 10:1 5.02

Comparison of Thar with Other International Mines

2

GoS has developed 12 blocks so far covering around 1000 sq km out

of 9100 sq km. The status of on-going Projects is given below:

Status of Projects at Thar Coalfield

Thar Coal Blocks Status / Timelines

Investment Status in Thar Coal Field

3

Block-I

Global Mining Company of China

Open cast Mining of 10 mtpa 900 MW

Coal supply to local thermal plants and

cement industry after briquetting

Block-II

Sindh Engro Coal Mining Company

(JV: 40% GoS; 60% Engro)

Open cast mine of 6.5 mtpa & 1200MW

Block-V

UCG Project

Under Ground Coal Gasification Project

2X50 MW IGCC Power Plant Planned

Block-VI

Oracle Coalfields, PLC (UK)

Open cast mine of 5 mtpa

MoU signed with KESC for 300MW

Bankable Feasibility completed March, 2012

Mining Lease issued May, 2012

Coal Production to start by 2015

Power Generation by 2015-16

Bankable Feasibility completed 31st Aug. 2010

Mining Lease issued August, 2011

Project financing activity continued.

Chinese Funding through JEWG is

being solicited

36 bore holes have been drilled.

Test Burn done in Dec. 2011

Power Plant of 8-10 MW is being

established.

Detailed Feasibility Completed Oct. 2011

Mining Lease issued May 2012

Start of Mine development by mid-2013

The following set of in-

centives are available to

facilitate investors for

development of indige-

nous Coal resources of

Sindh for Mining and

Power Generation.

Special EconomicZone• Thar Coalfield is declared has been declared as Special Economic

Zone and all Development Project in Thar region (including coal min-

ing and power generation) have been declared as ‘Projects of Na-

tional Security’.

Guaranteed Rate of Return• 20% (dollar-based) IRR is guaranteed to firms which achieve Finan-

cial Close before 31st December, 2015 for Mining & Power Genera-

tion based on indigenous coal and additional 0.5% i.e. 20.5% IRR for

firms which achieve Financial Close by 31st December, 2014.

Exemptions/concessions• Zero percent customs duties on import of coal mining equipment and

machinery including vehicles for site use.

• Exemption on withholding tax to shareholders on dividend for initial

30 years.

• Exemption on withholding tax on procurement of goods and services

during project construction and operations.

• Exemption for 30 years on other levies including Special Excise Duty,

Federal Excise Duty, WPPF and WWF.

Fiscal Incentives for Developmentof Indigenous Coal Resources

4

Streams of Investment:

The investors may enter into Joint Venture with existing Project Devel-

opers or may opt for acquiring new Blocks for any of the following busi-

ness opportunities.

1. Coal Mining

2. Integrated Coal & Power Generation Project

3. Mine Mouth Power Project

4. Underground Coal Gasification

5. Coal to liquid Technologies

6. Briquetting- Dried lignite from Thar can be transported and utilized by

retrofitted Thermal Power Plants and industry

7. Any other utilization which may be proposed by project sponsors

Procedure for allocation of Blocks

Sindh Mining Concession Rules - 2002 spell out concession award pro-

cedure which is also available at our website www.sindhcoal.gos.pk. The

successful applicant will get Exploration License after signing an MOU

with Sindh Coal Authority. The Exploration license is generally granted for

bankable feasibility studies (BFS) for a period of one year extendable on

valid grounds. The license holder shall be required to submit reports on

quarterly basis. The exploration license granted can be cancelled if con-

ditions of MoU or Exploration License are not fulfilled. After successful

completion of feasibility report, the Exploration License shall be con-

verted into Mining Lease in accordance with the provisions of Sindh Min-

ing Concession Rules 2002.

Investors are expected to submit credible financing plans for the project

including debt/equity financing.

Sindh Coal Authority shall provide all available data of the exploratory

work conducted in a Block to the holder of Exploration License free of

charge.

The investors are also expected to provide firm timelines with three

monthly milestone plan. Preference will be given to those who offer nar-

row timelines leading to early completion of BFS and project execution

phase.

Investment Opportunities in Thar Coal include:

5

Environment and Social Studies

All environmental standards as enunciated in the Pakistan Environmen-

tal Protection Agency (PEPA) Act 1997, relating to environmental pro-

tection, environmental impact and social soundness assessment, shall

be ensured. The Government of Sindh is also conducting Environmen-

tal and Social Studies, Land Use Plan including Resettlement Frame-

work for Thar Coalfields.

Water Master Plan

The policy of the Government to attract foreign investments in Thar Coal

Sector for allocation of various Blocks has enhanced the foreign interest

in Thar Coalfield resulting increased activities of coal mining and power

generation companies, which necessitated the placement of an optimal

Water Master Plan. In view of peculiar hydrological and hydro-geological

conditions of Thar, the early formulation of Water Master Plan is essen-

tial for hydro-related activities, to regulate all project developers and also

to facilitate development of Thar Coalfield. Hence, the Coal and Energy

Development Department is preparing a comprehensive Water Master

Plan for Thar Coal fields including hydro geological, water supply and

Wastewater Management Studies.

6

7

Thar Coal Resources at a Glance

Block Area Sq. Total Moisture Ash Vol. Sulphur Heating Value Fixed Carbon

Km Reserves % % matter % % (As Received) %

bn ton Btu/lb

I 122 3.56 43.13 6.53 30.11 0.92 6398 20.11

II 79.6 2.24 47.89 7.37 25.15 1.12 5008 19.68

III-A 99.5 2.00 45.41 6.14 28.51 1.12 6268 19.56

III-B 76.8 1.45 47.72 9.30 25.49 1.15 4808 16.79

IV 82 2.47 43.24 6.56 29.04 1.20 5971 21.13

V 63.5 1.39 46.82 8.92 30.24 1.20 5682 13.26

VI 66.1 1.65 46.80 5.89 29.34 0.90 5727 16.6

VII 100 2.17 48.27 8.03 25.30 1.16 5440 25.30

VIII 100 3.03 49.57 7.78 24.32 1.44 5302 18.10

IX 100 2.86 48.60 5.92 29.03 0.96 5561 15.73

X 100 2.87 48.99 6.35 30.79 1.17 4840 13.54

XI 101 1.61 49.97 8.07 24.16 1.61 5228 17.26

XII 100 2.34 50.82 5.71 25.00 1.11 5459 17.26

Note: Blocks VII to XII are available for allocation to Project Developers.

In order to fast track the development of coal, especially the largest coal

resources of Thar, one stop decision taking body Thar Coal and Energy

Board (TCEB) was established under the Chief Executive of the Province

with representation from Provincial and Federal Governments. Besides

this, the present Government also established Coal and Energy Devel-

opment Department in April 2009 mainly to focus on the exploration and

development of coal resources of the Province. Thar Coal & Energy

Board acts as one stop organization on behalf of all Ministries, Depart-

ments and agencies of the Government of Pakistan/ Sindh in the matters

relating to approval of the Projects for Coal Mining in Thar and for Coal-

fired Power generation plants or for other uses of Thar Coal. The primary

role of the Board is to facilitate and coordinate with domestic, foreign and

international institutions for speedy development of Thar Coal.

All projects of coal mining, power generation and other uses, in Thar

Coalfield including infrastructure projects are being coordinated and mon-

itored directly by the TCEB. All relevant departments are being coordi-

nated for expeditious completion of the infrastructure projects.

Thar Coal and Energy Board

8

1. Chief Minister Sindh Chairman

2. Federal Minister for Water & Power Vice-Chairman

3. Federal Minister for Finance Member

4. Federal Minister for Law and Justice Member

5. Deputy Chairman, Planning Commission Member

6. Provincial Minister (Irrigation ) Member

7. Provincial Minister (Revenue) Member

8. Provincial Minister (Finance) Member

9. Woman MNA from Thar Region Member

10. Federal Secretary, Ministry of Water and Power Member

11. Chief Secretary, Govt. of Sindh Member

12. Secretary, Coal & Energy Development Dept. Member

13. One eminent Person Member

14. Managing Director, TCEB Member/Secretary

Composition of Thar Coal & Energy Board

9

10

ROAD NETWORK70 tonnes load carrying capacity metalled road is

available up to Coal field area.

COMMUNICATION Telephone & Internet communication through

Optic fiber cable is available up to Thar Coalfield

area.

DRINKING WATER Reverse Osmosis Plants in Thar are available for

provision of potable water to the inhabitants of

Thar as well as project staff free of cost.

RESCUE STATIONRescue Station in coal mining area at Thar coal-

field covering an area of 8,200 sq. ft. has been

constructed.

LIBRARY A Coal library containing documents having

relevent information on Coal is situated at office

of Sindh Coal Authority.

THAR LODGEThar Lodge at Islamkot with 20-bedded accom-

modation to facilitate foreign and local investors

has been constructed.

Infrastructure Available at Thar

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TRANSMISSION LINEThe NTDC is executing two schemes for power evac-

uation from Thar:-

Phase – I: Transmission Line from Thar Coalfield to

Matiari

Phase – II: Transmission Line from Matiari to Rahim

Yar Khan

AIRPORTThe Civil Aviation Authority is executing the work of

construction of Thar Airport at a distance of 8-10 kms

from Thar Coalfield which is expected to be opera-

tional by December 2013.

PROVISION OF HEAVY DUTY ROADFor improvement of Road Network following 3

Schemes are in pipeline:

• From Seaport Karachi to Wango More via Thatta,

Badin (200 km)

• From Wango More to Thar Coalfield (135 km)

• From Hyderabad to Thar Coalfield via MPK, Digri,

Noukot, Mithi

(155 km)

PROVISION OF WATER The GoS is executing schemes of supply of 100

cusecs treated water from Left Bank Outfall Drain to

Thar Coalfield.

EFFLUENT DISPOSALThe GoS is executing a scheme of constructing 50

cusecs mine water drainage channel from Thar

Coalfield which will be completed by Dec, 2013.

RAILWAY LINKPRACS has prepared feasibility for broad gauge rail

link up to Islamkot.

Infrastructure Planned in Progress at Thar

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