Tariff hearing held for Thar Block-1 mine

The Thar Coal & Energy Board (TCEB) held a public hearing on Thursday to review the tariff petition filed by Sino Sindh Resources Pvt Ltd (SSRL) for its 7.8 million tonnes per annum (Mtpa) lignite mine at Block-1 of the Thar Coalfield. The session, conducted at a local hotel in Karachi, was attended by stakeholders, experts, and the public.

According to a statement, TCEB MD Tariq Ali Shah, along with Ammar Habib Khan, Member Finance/Power, and Dr Fahad Irfan Siddiqui, Member Mining, led the hearing. SSRL CEO Li Jigen presented details of the project, highlighting its significance as a China-Pakistan Economic Corridor (CPEC) initiative under the Belt & Road Initiative (BRI). Developed by Shanghai Electric under a Build-Own-Operate (BOO) model, the project represents a $3 billion investment—the largest single Chinese investment in any country.

The Thar Block-1 Integrated Energy Project includes two 660MW supercritical coal-fired power plants, supported by an open-pit mine spanning 150 km² with coal reserves of 2.6 billion tonnes. Positioned favourably in the National Transmission and Dispatch Company (NTDC) merit order, it offers electricity at Rs5.52/KWh ($0.02/KWh), making it a cost-effective alternative to hydropower. SSRL has proposed a levelised COD Stage Coal Tariff of $48.71 per tonne, reflecting necessary cost adjustments. The total project cost is estimated at $949.54 million, with projected operational costs of $13.72 per tonne for variable O&M and $12.74 per tonne for fixed O&M.

TCEB reaffirmed its commitment to transparency, stating that stakeholder feedback would be considered before finalising the tariff decision.