THAR — Thar Coal is set to play a bigger role in Pakistan’s energy future as K-Electric (KE) joined government agencies and industry leaders to advance plans for supplying indigenous coal to the 660-megawatt Jamshoro Power Project. The initiative is expected to support the expansion of Thar Block-1 mine capacity while helping Jamshoro Power Company Limited (JPCL) complete its transition from imported coal to locally produced fuel by 2029.

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A high-level meeting at the Thar Block-1 mine brought together KE Chairman Shaheryar Arshad Chishty, Thar Coal Energy Board (TCEB) Managing Director Tariq Ali Shah, Sino Sindh Resources Limited (SSRL) Chief Executive Officer Li Jigen, JPCL Chief Executive Officer Muhammad Abdul Vakil, representatives of the Private Power and Infrastructure Board (PPIB), and other stakeholders.

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More than 100 words into the discussions, Thar Coal remained the focus as stakeholders reviewed supply arrangements for the Jamshoro project during its interim blended-coal operations and its planned full conversion to indigenous fuel. The initiative also aligns with K-Electric’s broader strategy to optimize its power generation portfolio by increasing the use of domestic energy resources.

K-Electric funded an independent feasibility study conducted by German engineering consultant Dornier Power and Heat GmbH. The study confirmed the technical and economic viability of converting the Jamshoro plant to Thar coal. Based on its assumptions, the report estimated economic benefits of about $3.2 billion over the project’s remaining operational life. It also projected a significant reduction in imported coal consumption, helping Pakistan conserve valuable foreign exchange reserves.

KE Chairman Shaheryar Arshad Chishty said greater use of Pakistan’s indigenous energy resources would strengthen energy security, lower electricity costs, and reduce pressure on foreign exchange reserves. He added that the Jamshoro conversion forms part of the company’s broader operational and financial transformation aimed at delivering long-term value to Karachi’s electricity consumers.

Mine Expansion Planned Before 2029

KE said the combined coal demand from the Jamshoro project and its future generation portfolio would justify expanding the Block-1 mine’s production capacity from around 7.8 million tonnes per annum (MTPA) to approximately 15.6 MTPA.

SSRL confirmed it is prepared to complete the expansion before JPCL’s planned transition to full Thar coal in 2029. The company said the project would ensure uninterrupted long-term coal supplies while improving the cost competitiveness of locally produced coal.

Chief Executive Officer Li Jigen said SSRL intends to finance the expansion using its own resources. He added that the project would incorporate advanced mining technologies, including electric mining vehicles, increased use of grid electricity instead of diesel-powered equipment, and modern Bucket Chain Excavator (BCE) systems. These upgrades are expected to improve efficiency, lower operating costs, and reduce the environmental footprint of mining operations.

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SSRL, JPCL, and K-Electric agreed to finalize the required Coal Supply Agreement (CSA) as soon as possible. The agreement will allow SSRL to begin procuring critical mining equipment, including electric dump trucks and other long-lead assets needed for the expansion.

TCEB Managing Director Tariq Ali Shah reaffirmed the board’s commitment to facilitating the mine expansion and completing the necessary regulatory processes. He said the project could improve mining efficiency, lower coal tariffs, and ultimately benefit electricity consumers.

JPCL and PPIB also expressed support for the initiative. The participants agreed to continue coordinated work on the technical, commercial, regulatory, and supply arrangements required to complete the project.

K-Electric said its investment in the feasibility study and continued collaboration with stakeholders reflects its commitment to projects of national importance. The company believes the initiative can reduce electricity generation costs, cut dependence on imported fuels, conserve foreign exchange, and gradually reduce the power sector’s reliance on government-funded tariff support.