K-Electric backs Thar coal expansion to enable Jamshoro's shift to local coal by 2029

K-Electric's plan to source indigenous Thar coal for the 660-megawatt Jamshoro Power Project could pave the way for doubling production at the Thar Block-1 mine and help convert the power plant from imported to local coal by 2029, according to stakeholders involved in the project.

The proposal was discussed during a high-level meeting at the Thar Block-1 mine attended by K-Electric Chairman Shaheryar Arshad Chishty, Thar Coal Energy Board Managing Director Tariq Ali Shah, Sino Sindh Resources Ltd. Chief Executive Officer Li Jigen, Jamshoro Power Company Ltd. Chief Executive Officer Muhammad Abdul Vakil, representatives of the Private Power and Infrastructure Board and other stakeholders.

The discussions focused on coal supply arrangements for the Jamshoro plant during its interim blended-coal operations and its planned transition to full use of Thar coal. Stakeholders also discussed opportunities to align suitable assets in K-Electric's generation portfolio with indigenous fuel sources.

K-Electric said it funded an independent bankable feasibility study by German engineering consultant Dornier Power and Heat GmbH, which found the proposed conversion to be technically and economically viable.

According to the study, the conversion could generate an estimated USD 3.2 billion in economic benefits over the project's remaining life, based on its underlying assumptions. It could also significantly reduce imported coal consumption and conserve foreign exchange.

K-Electric Chairman Shaheryar Arshad Chishty said greater use of Pakistan's indigenous energy resources could help lower electricity costs, strengthen energy security and ease pressure on the country's foreign exchange reserves.

He said the Jamshoro conversion, together with K-Electric's efforts to optimize its own generation portfolio, forms part of the company's broader operational and financial transformation aimed at delivering sustainable value to consumers in Karachi.

K-Electric said the combined coal demand from the Jamshoro project and its future generation portfolio would justify expanding the Thar Block-1 mine's production capacity to about 15.6 million tons per year from the current 7.8 million tons per year.

Sino Sindh Resources Ltd. said it is prepared to finance the mine expansion from its own resources ahead of Jamshoro's planned conversion to Thar coal by 2029.

Chief Executive Officer Li Jigen said the expansion would require relatively limited additional overburden removal and would incorporate electric mining vehicles, greater use of grid electricity instead of diesel-powered equipment where feasible and modern bucket chain excavator systems to improve efficiency, lower operating costs and reduce the project's environmental footprint.

The company said the resulting economies of scale are expected to reduce the long-term cost of Thar coal.

SSRL, Jamshoro Power Company and K-Electric agreed to finalize a coal supply agreement as soon as possible to allow procurement of long-lead mining equipment, including electric dump trucks and other machinery required for the expansion.

The Thar Coal Energy Board said it would facilitate the required regulatory approvals to support the expansion, improve mining efficiency and help reduce coal tariffs. Jamshoro Power Company and the Private Power and Infrastructure Board also expressed support for advancing the initiative.

K-Electric said its funding of the feasibility study and continued engagement with stakeholders reflect its commitment to projects that could lower power generation costs, reduce reliance on imported fuels, conserve foreign exchange and gradually reduce the power sector's dependence on government-funded tariff support.