Oracle coal fields of UK to invest up to US$ 610 million in Thar

KARACHI: Chief Minister Sindh, Syed Qaim Ali Shah, held a meeting with CEO of Oracle Coalfields of UK, Shahrukh Khan, at the CM House here on Thursday and said the government is fully committed for development of Thar Coal which has the potential of turning the country’s economy around.

He said the Thar Coal resources can be used for power generation, chemical production and other uses and has the potential of providing energy security to the country, he said.

Muhammad Zubair Motiwala, Chairman Sindh Board of Investment, Sohail Rajput, Secretary Coal Department, and Ms. Naheed S. Durrani, Secretary Investment Department, also attended the meeting.

The CEO Oracle Coalfield of UK announced that the Mining Lease for the Development and exploitation of the 66 Block VI of the Thar Coalfield has been awarded while Oracle plans to invest up to US$ 610 million for development of open cast coal mine with the annual production of 5 million tons per year.

He added that Oracle has entered in to an MOU with KESC to develop initially a 300 MW mine mouth power plant by 2015 to be scaled up to 1100 MW.

The Pre-development ground work for coal mine will commence from May 2012.

During Pre-development Phase the Oracle Coalfields will construct a 4 Km access road in their Block from the existing road, establish the site office complex comprising prefabricated concrete housing and ancillary buildings for initial management team, Community Liaison Officers and a healthcare facility for local people, install a Reverse Osmosis plant for providing water and conduct earthworks to level the open pit area and constriction of early drainage facilities etc.

Shahrukh Khan further informed that after above motioned works the Open-pit coal mine development is expected to start in early 2013 with initial production of coal in 2014 with full scale 5 million tons per annum coal production in 2015.

The work on Community and Social Responsibility (CSR) is also planned to commence form May 2012 which will be part of a long-term sustainable development for local communities and includes job creation and training for local workforce, establishing a medical center, provision clean water and electricity to local communities, veterinary services for the health of livestock for the community and sanitation.

In the discussion with the Chief Minister, Chief Executive of Orcale Coalfield, Shahrukh Khan, outlined the Company’s strategic plans and timeline for the early development and operation of the Block VI Coal Mine.

Shahrukh Khan emphasized that following the issuance of the Mining Lease the Company will implement a programme of site construction works including a mine site office complex, access roads, water and power generation units a healthcare facility as well as creating job opportunities for the local communities.

The opportunity was also taken to express the company’s appreciation for the valuable assistance and co-operation it has received from the Sindh Government and especially the Thar Coal and Energy Board.

Shahrukh Khan added that the company remains committed to achieving its objective of earliest possible production and contribute positively a fuel for the electricity Sector.

Chief Minister Sindh stressed that the progress on work be enhanced so that better results are achieved.

He said that good results are awaited for the benefit of people of Pakistan particularly the people of Sindh so as to overcome shortage of gas and power problems.

The meeting was also attended by Special Secretary to CM, Hafeezullah Abbasi, Shafiq R. Khan, Director Oracle Coalfield, Brain Rostran Mining Manager Oracle coalfield, Director General Coal Abdul Majeed Pathan, Irfan Ahmed Memon.