Pakistan has large coal reserves of around 185 billion tons, with 175 billion tons located in the Thar Coal Fields alone. These coal reserves can generate 5000 MW of electricity from Thar for 800 years, providing a long-term solution to Pakistan's energy problems. However, Pakistan currently generates only 0.1% of its electricity from coal despite having substantial reserves. Increased utilization of domestic coal reserves could reduce dependence on expensive imported oil and gas for electricity while saving foreign exchange and strengthening the economy.

1. 1
Submitted To:
Prepared By:
Introduction

2. 2
Pakistan has the large amount of reservoirs of coal. Pakistan has the 185 billion tons of coal
reservoirs in all over the country. Pakistan is fourth country of the world, which have such
large amount of coal reservoirs available. Thar Coal fields have the 175 billion tons
reservoirs of coal alone. These coal reservoirs can be used for the generation of electricity, as
it is found that Pakistan
can generate 5000 MW
electricity from Thar Coal
fields for the next 800
years. With its gas reserves
nearly depleted, Pakistan
generates 37% of its
electricity using oil, the
most expensive source of
power generation, while
the reliance on indigenous
coal reserves is negligible.
This is a very cheap
product and long term
solution of the energy
problems facing by the country.
The Thar coal mega power project is one of the largest coal power generation project in
Pakistan. The Thar coalfield is located in the south-eastern part of Sindh. The first indication
of the presence of coal beneath the sands of the Thar Desert was reported while drilling water
wells by the British Overseas Development Agency (ODA) in coordination with the Sindh
Arid Zone Development Authority (SAZDA), in 1991. The Thar coalfield, with a resource
potential of 175.5 million tons of coal, covers an area of 9000 sq. km. in the Tharparkar
Desert. The mineable coal reserves are estimated to be 1,620 million tons. The coal-bearing
area is covered by stable sand dunes. In order to establish the coal resources in the selected
four blocks, a total of 167 holes were drilled at one kilometer spacing.
Pakistan is facing enormous electricity shortage problems since long. If Pakistan utilizes its
coal reservoirs for the generation of electricity then, it can reduce the dependence upon oil
and gas for the electricity generation like many other countries of the world. Import of crude
oil can be reduced and a large amount of money can be saved, also gas can be given to other
parts of economy like households, industry etc, which are effecting with gas crisis. With
generation of electricity from coal at Thar coal reservoirs, employment can be generated,
industry can also be run, household shortage of electricity can be competed and economy of
Pakistan can also be strengthened.
The hydro-geological studies and drill hole geology shows the presence of three possible
aquifer zones at varying depths:
1. One aquifer above the coal zone and Ranges between 52.70 and 93.27 meters depth.
2. Second aquifer with the coal zone at 120 meters depth varying thickness up to 68.74
meters.
3. Third aquifer below the coal zone at 200 meters depth varying thickness up to 47 meter.
Thar CoalField Blocks I-V:

3. 3
Size of Resource:
Thar Lignite Coal resource was initially estimated to be
around 135 billion tons which was subsequently
enhanced to 175 billion tons after review of data by
USGS (United States Geological Survey) and GSP
(Geological Survey of Pakistan). This estimate was
based on distanced bore holes over an area of 9000 sq
kms which meant a source estimate of around 194
million tons of lignite per sq km. This initial estimates
continue to be proven correct by more intense
explorations of digging 40-45 bore holes per 100 sq
kms and proving the resource by conducting tests
according to international standards. The results of
these explorations carried over an area of around 1200
sq kms so far have provided even higher figures of
proven reserves of being around 200 to 350 million
tons of lignite per sq km than the earlier estimates, than
the earlier estimates of around 194 million tons of
lignite per sq km. Hence it can now be said with
certainty that these resources will ultimately come out
to be of much greater size than the earlier estimates.
According to the standard conversion rates, the Thar
Lignite Coal resources are equivalent to around 50 billion tons of oil, which is more than the
combined oil resources of Saudi Arabia and Iran. In terms of gas reserves, these are around
68 times the present resources of natural gas in Pakistan. The exploration of 13 blocks (some
1200 sq kms or 13% of the total reserve) gives us the following pictures:
Pakistan’s Coal Reserves:

4. 4
Electricity Generations from Coal & Lignite Reserves in Pakistan
& Other Countries:
Countries

5. 5
Power Generation from Block 1-9:
Area Name of
Company
Coal Mining Power
Generation
Status
Block -1 Global Mining
company of
China
5.0 Million
tons per
annum- open
cast mining
900 MW
initially to be
scaled up to
3000 MW
Bankable Feasibility by March
2012. Mining by June 2012
Planned Coal Prod. by 2015-
2016 & Power Generation by
2017-2018
Block -2 Sindh Engro
Coal Mining
Company
6.5 million
tons per
anum- open
cast mining
1200 MW
initially to be
scaled up to
2400 MW
Bankable Feasibility
completed. Financial close
expected by June 2012. Mining
by 2012
Block -4 Proposal from a
large Chinese
Company
conglomerate
under
consideration
Will prepare
feasibility
1500 MW to be
scaled up to
3000 MW
Expected to work on study in
March 2012
Block -5 Under coal
Gasification
Project by
GOP/GOS
No mining
involved
100 MW pilot
project
Test burn done
Block -6 Oracle coal
field of United
Kingdom
5 million tons
per anum-
open cast
mining
300 MW mine
mouth and
supplies to
power plants in
other parts of
province
Bankable Feasibility
completed. Financial close
expected by 2012. Mining by
2012
Block -8 Proposal from
European
consortium
under
consideration
Will prepare
feasibility
300 MW to be
scaled up to
1000 MW
Expected to begin work in
March 2012
Block -9 Proposal from
US consortium
under
consideration
Will prepare
feasibility
1500 MW to be
scaled up to
3000 MW
Expected to begin work in
March 2012

6. 6
Thar Coal Blocks and Reserves in it:
Block # 01:
Name/Blocks: Block-I, Sinhar Vikian Varvai
Area (Sq-Km): 122 Sq.Km.
COAL RESERVES
The estimated coal resources of the block of all categories are 3,566.91 million tonnes. These
are as given below
 Measured reserves 620.42 million tonnes
 Indicated reserves 1,918.06 million tonnes
 Inferred reserves 1,028.43 million tonnes
Block # 03:
Name/Blocks: III (B), Saleh Jo Tar
Area (Sq-Km): 76.80 sq.km.
Block # 04:
Name/Blocks: Sonalba, Block-IV
Area (Sq-Km): 82sq-Km
The sonalba Block IV contains coal beds of variable thickness range from less than 0.3 m to
20.20meters. the maximum number of coal seams encountered is 12, 16 and 31. The
cumulative thickness of the coal bed ranges from 10.74 meters to 33.45 meters. Claystone is
invariably forms the roof and floor rock. The coal is brownish black to grayish black in color.
It is poorly cleated to well cleated and compact. It contains scattered resin globules
throughout. The quality of coal is better where percentage of clay is less.
Reserves:
 Measured = 684.09 million tons
 Indicated = 1711.28 million tons
 Inferred= 176.14 million tons Total= 2571.51 million tons
Block # 07
Name/Blocks: Dhaklo, Block-VII
Area (Sq-Km): 100sq-Km
Reserves
 Measured = 572.12 million tons
 Indicated = 1514.51 million tons
 Inferred= 89.15 million tons
 Total= 2175.78 million tons
Block # 08
Name/Blocks: Block-VIII, Khario Ghulam Shah
Area (Sq-Km): 100 Sq.Km.
 Measured reserves 882.81 million tonnes
 Indicated reserves 2131.36 million tonnes
 Inferred reserves 21.68 million tonnes
 Total Reserves 3035.85 million Tonnes

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Block # 09
Name/Block: Block-IX, Katan
Area: 100 sqkm
Cumulative Reserves
• The total coal resources of Block-IX (100 sq.km area) according to USGS are as follows:
 Measured Resources 661.84 million tons
 Indicated Resources 2048.00 million tons
 Inferred Resources 152.41 million tons
 Total Resources all categories 2862.25 million tons
Block # 10
Name/Block: Block-X, Mithrio Sumra
Area: 100 sqkm
Cumulative Reserves
• The total coal resources of Block-X of 100 sq.km area calculated according to USGS
circular No. 861 are as follows:
 Measured Resources 609.05 million tons
 Indicated Resources 1920.56 million tons
 Inferred Resources 418.18 million tons
 Total Resources all categories 2947.80 million tons
Block # 11
Name/Block: Block-XI, Baprana
Area: 101.46 Sq. Km
Cumulative Reserves
• The total coal resources of Block-XI (101.46 sq.km area) according to USGS are as follows:
 Measured Resources 315.60 million tons
 Indicated Resources 1014.28 million tons
 Inferred Resources 282.17 million tons
 Total Resources all categories 1612.05 million tons
Block # 12
Name/Block Block-XII, Janib Ali Shah jo Tar
Area 100.74 sqkm
Cumulative Reserves
• The total coal resources of Block-XII (100.74 sq.km area) according to USGS are as
follows:
 Measured Resources 510.01 million tons
 Indicated Resources 1755.85 million tons
 Inferred Resources 79.74 million tons
 Total Resources all categories 2345.60 million tons

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 Thar Coal Potential:
Wrong Fuel Choice in Pakistan:
Due to lack of indigenous natural gas shortages, reliance on expensive imported Residual
Fuel Oil (RFO) has increased and exacerbated Circular Debt problem
 If Coal had been used instead of RFO to make up for indigenous natural gas shortage, it
would have reduced energy import bill by USD 600 M and direct saving of USD 280 M
to electricity consumers.
 50% reduction in use of RFO for power generation would reduce Pakistan’s energy
import bill by USD 900 M and benefit electricity consumers by USD 400 M.

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The demand of electricity in Pakistan is increasing every year and coal could be the best
option to fulfill electricity requirements in the country because so far Pakistan is generating
electricity from hydro technology but water scarcity is also becoming an issue for the
country. It is estimated that the electricity requirement will increase about 42,000 MW by
2020 (Supply & Demand Position, 2008-2010). The electricity demand is increasing at an
approximate rate of 2500 MW per year as shown in Fig. 1.2.
Demand and Supply Gap Projection for Pakistan:

10. 10
UndergroundWater Resources:
Three water aquifers at an average depth of 50m, 120m and more than 200 meters:
 First aquifer above the coal zone
 Second aquifer within the coal zone at 120 meters depth: Varying thickness upto
68.74 meters
 Third aquifer below the coal zone at 200 meters depth: Varying thickness upto
47 meters

National Cause of Load Shedding:
 Cost to the Industrial Sector Rs 157 billion
 Cost to the other sectors of industrial
loss of Value Added Rs 53 billion
 Total cost of industrial load shedding
to the economy Rs 219 billion
 Cost as percentage of GDP 2 %
 Loss of employment in the economy 400,000
 Loss of exports Rs 75 billion
(equivalent to US $ 1 billion)
Economic Impact due to energy deficit:
For firms with self-generation
 Additional cost of Power self-Generation Rs 32 billion
 Value Added Loss Rs 42 billion
 Total Cost Rs 74 billion
For firms without self-generation
 Additional cost of Power self-Generation Rs 6 billion
 Value Added Loss Rs 77 billion
 Total Cost Rs 83 billion
 Overall Cost to the Industrial Sector Rs 157 billion
 Cost as % of Industrial value added 9%
 Percentage loss of Production 7%
 Loss of industrial Employment 300,000 workers

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Major Issues in Energy Sector:
In 2010, Pakistan'senergymix comprisedof nearly
88.2% fossil fuelswhereashydroandnuclear
constitutedto10.6% and 1.1% respectively.Similarly
the electricitygenerationisprimarilydependenton
thermal powerplantswhichcontributedtonearly
67.3% of the electricitygenerated.Hydroand
nuclearpowerconstitutedto29.4% and 3.03% of
the electricitygeneratedwhile0.26%was imported
fromneighboringcountries.Contributionof hydro
powerinproductionof electricityreducestoonly
11% inwinterdue toseasonal variationsinflow of
water,forcedandmaintenance outages,etc.The
majorissuesbeingfacedbythe country'senergy
sectorare shown infigure.
Thermal Energy:
Hydro power potential Hydra or water is one of the most significant components for human
life. Per capita water availability is a
measure of relationship between water
and human life. More than 1700 m3
availability shows that country has no
water scarcity while below it shows
stressed or seasonal scarcity prevailing
in any country. Lower than 1000 m3
means severe shortage of water in a
nation; Pakistan is at the threshold of
1038 m3. This is the result of delaying
the development of water reservoirs.
Dams are probably world's largest man-
made structures and require huge capital
and an extended time period for
completion. They not only help in
generation of electricity by providing
head but also provide water for irrigation
and protection against floods. Storage capacity of dams reduce with time as they are filled
with silt; but even when full of sedimentation, they can be operated as run-of-the-river plants.
Hydro power is the most established of all renewable technologies and has a share of nearly
15.3% in the global energy mix with total installed capacity up to 970 GW at the end of 2011.
At present, the country's storage capacity is only 8% of its annual surface flow share of 145
MAF. Terbela is the largest storage reservoir in the country with storage capacity of 9.69
MAF which is now reduced to 70% because of silt accumulation. Mangla has 5.05 MAF of
storage capacity after upraising. Government has withdrawn from the controversial Kalabagh
Dam project and the completion of 4500 MW Diamer Basha Dam is expected till 2022. The

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identified potential of large hydro power plants is 59 GW whereas the potential of small
hydro projects in Gilgit is around 2000 MW. The proposed sites for new hydro power plants
are shown in figure.
Coal Energy:
Thar coal and coal gasification Coal provides
almost 27.3% of the global primary energy
supplies and is the 2nd largest source of energy.
Burning of coal to convert it into coal gas under
the earth in an environmental friendly manner is
a well proven technology. There are following
four techniques of coal gasification. Sasol–Lurgi
dry ash. GE (originally developed by Texaco).
Shell. Conoco Phillips E-gas (originally
developed by Dow). In Pakistan the contribution
of coal is 6% in the energy mix and only 0.1% in
electricity generation. Only coal power plant in Pakistan is at Lakhra with operating capacity
of 30 MW. According to HDIP, the country had to import around 3.064 MTOE of coal
amounting to Rs. 34,937 million in 2010. Thar coal reserves are the 5th largest coal field in
the world, with an estimated 176 billion tons of coal, and are considered sufficient for the
generation of 20,000 MW of electricity for the next 40 years. The exploitation of the coal
reserves has not been possible due to lack of mining and gasification technology. Survey of
Pakistan has determined the quality of coal using 2000 samples and showed that the coal is in
range of Lignite B to Sub-bituminous A with relatively low in sulfur and ash contents. Low
quality coal is suitably converted to coal gas which is mixture of carbon mono oxide, carbon
dioxide ash and water vapors through Sasol Lugri technique.
 Social benefits of Thar Coal Project:
Development of Thar Mining & Power projects will contribute to economic and social uplift
of the entire Thar region:
• Creation of social assets: education institutions, medical facilities & vocational training
institutes will enhance human capital, facilitate knowledge transfer and build capacity

13. 13
• Infrastructure development: sewerage system, provision of clean drinking water will
improve health, hygiene and environment
• Increased economic activity: will generate employment opportunities for local residents in
the mining and power sector and related industries
• Dairy hub, improved livestock management, agriculture improvement programs: will
contribute to sustainable livelihoods and prevent environmental degradation.
 Potential Benefits of Coalfield Development:
About 40 percent electricity is generated from coal energy in the world, as compared to only
one percent in Pakistan. From 1000 kg of the universal raw material lignite, we can produce
either 400 kg briquettes, or 360 kg pulverized lignite, or 250 kg coke, or 55 cbm synthesis
gas, or 180 litre fuel, or 280 litre methanol or 790 kwh electricity. A 1000 MW coal-fired
power plant operating at 70 oh capacity factor requires about 1 .5 million TOE or 7.0 million
tons of lignite B coal per year.
According to data released by the Sindh Coal Authority, the entire Thar coalfield has
measured deposits of about 1 1 billion tons, out of which over 3 billion tons of fine coal lie in
the four presently surveyed blocks around lslamkot town in Mithi taluka. The coal in the
surveyed blocks is sufficient for the establishment of 6 coal-fired power plants of 1000 MW
each (equivalent to the present power generation capacity in Pakistan) with continuous
production for 30-50 years duration. The entire Thar coalfield, when fully exploited and
developed, could provide raw material for electric power generation to the tune of 25,000
MW annually for the life time of 50 years and/or it could supplement and complement other
sources of power generation in Pakistan for centuries. After the on-going series of feasibility
studies, the Government plans to provide incentives to independent power producers to set up
production plants at the mine sites in Thar coalfield, and to sell electricity to the national grid.
lt is also urging the cement and sugar industries to use this coal in the form of briquettes, so
as to affect about 50% furnace oil imports bill of $250 million; and, also can economize on
the cost of production of sugar and cement.
Development of Project and integrated power projects will contribute to economic and social
uplift of the Thar which presently ranks lowest on all socio-economic development indicators
in Sindh. The development of the Project would result in some of the following benefits to
the region:
I. Project will be developed in Pakistan's most backward region, opening up immense
economic opportunities for the deprived region o At optimum Mine capacity, Mine would
provide employment to around 10,000 skilled and unskilled labor o And will lead to
creation of social assets i.e. education institutions, medical facilities, infrastructure
development etc.
II. Project will help development of the indigenous mining industry and act as a catalyst for
future mining projects, which shall come on-board once this project kicks-off
III. Potential for downstream industries in petro-chemical and fertilizer products
IV. Local people will get jobs and vocational training
V. Physical and social infra-structure will develop
VI. Revenues of local government institutions will increase
VII. Trade, transport and tourism will see a boom in Thar Desert
VIII. General socio-economic transformation will occur, whereby the local indigenous groups
shall also reap the benefits of economic development.

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Benefit to Economy – Reduction in Power Generation Cost from
Thar Coal:
Coal mininghasa longlegacyof providingjobsespeciallythe placessufferingfromhighpovertylike
Thar region.AccordingtoWorld Coal Association(WCA) report,evenafterdecades,coal isstill the
backbone of modernelectricityandcurrentlysuppliesaround30% of primaryenergyand41% of
global electricitygeneration. Italsopredictsthatthe coal usage will rise over50% by 2030, with
developingcountriesresponsiblefor97% of thisincrease,primarilytomeetimprovedelectrification
rates.
Pakistan’sunreliable powersupplyisaffectingthe productive use of energy eitherdirectlyor
indirectly.The powershortage inthe formof load-sheddingannuallycostPakistan14billion
Pakistani rupees(7%of GDP).Thar coal powerprojectwill mainlyresultinpositive socioeconomic
impactlocallyaswell asregionally.Withincreasedpowergeneration,project(Block-II) only,will add
660 MW powertothe national gridthat will furtherbe suppliedtovarioussectorssufferingfrom
shortfall therefore,will have apositive impactonthe country’seconomythroughabetterGDP.By
providingadditional jobopportunities,projectwill directlyimpactthe economyof the countrywith
freshlycreatedeconomicactivities(employmentandincome)andindirectlybyprovidingother
opportunitieslikeproduction,employmentandotherbusinessesthatsupplyinputstothe project
that will resultinprosperityandstable incomesof locals.
Accordingto Cambridge EnergyResearchAssociates(CERA) estimatesshowninfigure3,for oil
pricesBlock-IIwill immenselybenefitindustrialists,domesticconsumersandeconomyof the
countryby reducingthe powergenerationcostandsupplyinguninterruptedelectricity –netpresent
value inPakistani Rupeesis3.2 Trillionoveraperiodof 60 years.
Low pricesof electricitywill helprevivingthe industrybyprovidingmore opportunitiesfor
investment–fallendownto0.7% in recentyearsfrom1.5% of GPD in90s, and has resultedin
forcible shutdownof small andmediumscale industriesdue topowercrises.Alsoitwill cutdown
the revenue spentonloadsheddinginthe formof candlesandkerosene.Tharcoal projectwill
generate positive externalitiesnotonlyinthe formof hundredsof jobsbutalsoby cumulative net
savingsandmost importantly,regularandcost-effective energysupplyneededtoaddressthe future
energymix of Pakistan.

15. 15
Annual Savings in Foreign Exchange from Thar Block II:
Thar Coal cost - effectiveness and various studies
There are benefits of having several projects in close proximity at Thar. Grid facilities could
be shared by the different projects. The usage of ground water by several projects will lower
the water table in the region making coal mining more easy and cost effective. The possibility
of using one mine service facility for all mines and power plants and common
location/facilities for all power plants in the complex. The concentration toward one big open
cast mine by Bucket Wheel Technology (BWE) will benefit all mining companies and cost of
lignite will be reduced considerably an illustrative comparison is shown in Table 4 & 5:

16. 16
Conclusion:
It is indubitable that Thar coalfield have potential to be financially profitable, technically
reliable, environmentally sound and socially responsible, therefore, can meet the power needs
of Pakistan for two centuries at least. And circular economy along with other sustainable
techniques not only enhances the economic performance of Thar coalfield by regulating the
needed supply of electricity which has paralyzed the economy of the Pakistan and by creating
direct and indirect employment and business opportunities to alleviate poverty, but also
reduces greenhouse gas emissions, controls water and air pollution and helps in addressing
the environmental degradation problems. However the success of the coal industry and
environmental development still largely depend upon the Pakistan governments’ guiding
ideology on development, strict enforcement of laws, policies, strategies, and public
corporation and participation.
Due to the present electricity crisis, there was need to increase practice of indigenous
resources for power generation, Thar coal could prove to be a useful source of energy. Any
electricity generated from Thar coal might help in reducing the need of importing expensive
furnace oil. Gasification can also be a potential use of Thar coal. It will diversify our
electricity generation sources, save us some foreign exchange and decrease the present gap
between supply and demand of electricity. Most importantly, it will bring much needed
development and employment to the Thar area. It increases employment in the country and
development of industries or it will help climb up the ladder of industrial development in
future. Industrial development will enhance GDP per capita income and living of standards of
the people, generation electricity, prosperity and development to the country.
So, it can be concluded that coal has positive and significant impact on the electricity
generation, as other resources have on it. By utilizing the coal, electricity can be generated for
the long run. By generating electricity from coal and other resources, the economy of
Pakistan will boost and it will be effective for the people of Pakistan. By producing electricity
from coal, energy problems of the country can be resolved.
RECOMMANDATIONS:
 Thar coal fields are found to be more reliable and effective for long run electricity
production. Government should start working on this project for getting the cheap
electricity.
 Government should try to reduce the load of electricity generation from oil and gas, and it
should be converted on coal and nuclear.
 Government should provide all related facilities for generation of electricity from coal to
the scientists, who are claiming that they can produce electricity from coal as soon as
possible.
 Private sector and foreign companies should invest in the Thar coal fields for the
generation of cheap and effective electricity.