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Report # 71 Sep1-15,2007

INDUSTRIAL ADVISORY REPORTS

IAR 71 Coal/Power-III Sep 1-15, 2007 WLL: 021-5458129

COAL BASED POWER PROJECT - III

Coal Reserves
The coal deposits in Pakistan was known before independence, but its economic value was highlighted in 1980, when large reserves of coal were discovered in the Lakhra and Sonda, Tharparkar District of Sindh Province. These reserves spread over an area of 10,000 sq km. This discovery has provided a quantum increase in the coal resources of Pakistan and made the country having the 7th largest coal reserve among the top 20 countries in the world. The reserves were discovered by Geological Survey of Pakistan and US Geological Survey with the financial support of USAID. Coal is found in all four provinces of Pakistan but especial emphasis is being given on utilization of reserves of Thar coalfield. In the Sindh province coal resources estimated at 175 billion ton. Due to high cost of imported energy government has decided to enhance the share of coal in the overall energy mix from 5 to 19 percent by 2030. Energy Security Action Plan has set a target of generating 20,000 MW power from coal by 2030 and 50 percent by 2050. Total national coal production, from operational coal mines, increased by 6.5 percent from 4.6 million ton in 2005-06 to 4.9 million ton in 2006-07. Presently, over 80 percent of coal is consumed by the brick kiln industry reducing the supply available for power generation. Approximately 80 percent of cement industry has switched over to coal from furnace oil that has saved considerable foreign exchange being spent on the import of furnace oil. The conversion of cement industry from furnace oil to coal has generated a demand for 2.5 to 3.0
z

H I G H L I G H T S
Due to high cost of imported energy government has decided to enhance the share of coal from 5 to 19 percent by 2030. Energy Security Action Plan has set a target of generating 20,000 MW power from coal by 2030 and 50 percent by 2050. Pakistani industry is largely based on Gas as fuel and its reserves are dwindling rapidly. Pakistan has the 7th largest coal reserve among the top 20 countries in the world. The Sindh Coal Authority has decided to carry out a hydrological study to explore underground or surface water resources required in abundance for coal mining and human consumption.

million ton coal per annum. But these units are mainly using imported coal. Table-1 shows field wise production of coal during 2000-06. During the 6 years average increase in import of coal was 24.5 percent, which is quite height, table-3. In the same years average production of indigenous coal in Balochistan increased 3.2 percent, Punjab 7.4 percent, Sindh 15.5 percent and NWFP/Fata 51.2 percent. The total increase has been 9.5 percent. To ascertain commercial viability of coal mining from Thar, German consultant M/s Rheinbraun Engineering has done a detailed mining feasibility on block-1 in Thar coalfield. The same block is aimed for commissioning of integrated coal mining and 1000 MW power generation project first given to international Chinesefirm and now to Hasan Associates for conducting feasibility study for

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2003-04 2004-05

INDUSTRIAL ADVISORY REPORTS - 8 IAR 71 Coal/Power-III Sep 1-15, 2007

Table - 1 Production of Coal by Field

Province/Field BALUCHISTAN Sor Range Degari Sharigh Sinjidi Mach Harnia-Khost-NasakaZardalu Duki Pir Ismail Ziarat Abegum Barkhan/Chamalong Sub-Total 116,076 311,977 421,980 62,513 1,545 1,673,230 136,143 382,172 440,794 69,246 17,457 1,742,546 1,709,396 1,645,748 1,808,299 1,958,915 3.2% 55,608 420,929 359,890 69,236 124,639 417,726 325,051 57,730 143,736 436,222 350,116 63,576 169,086 531,929 366,090 27,380 7.8% 11.3% -2.8% -15.2% 154,598 50,954 111,391 202,543 239,653 140,028 44,811 123,330 199,744 228,821 167,252 62,993 157,724 196,115 219,649 145,039 58,558 167,128 161,410 188,473 129,172 55,966 197,677 128,895 302,939 122,417 47,257 265,804 121,413 307,539 -4.6% -1.5% 19.0% -9.7% 5.1% 2000-01 2001-02 2002-03 2005-06 ACGR

PUNJAB Marerwal/Salt Range Sub-total 401,346 401,346 505,371 505,371 502,326 502,326 535,066 535,066 544,326 544,326 573,684 573,684 7.4% 7.4%

SINDH Lakhra Jhimpir Sub-Total 970,738 7,802 978,540 1,006,715 14,865 1,021,80 1,031,129 15,537 1,046,666 900,613 10,486 911,099 2,000,000 2,010,000 15.5%

NWFP/FATA Makerwal/Gulakhel /Kohat, FATA Sub-Total Total: Ton TOE 41,536 41,536 3,094,652 1,384,547 58,539 58,539 3,328,036 1,488,963 53,198 53,198 3,311586 1,481,604 183,571 183,571 3,175,484 1,465,452 234,000 234,000 4,586,625 2,052,056 328,560 328,560 4,871,159 2,179,357 51.2% 51.2% 9.5%

Field-wise breakup not available Source: DG (Minerals), Provincial Directorates of Mineral Development

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Inferred

INDUSTRIAL ADVISORY REPORTS

IAR 71 Coal/Power-III Sep 1-15, 2007

Table - 2 Coal Resources of Pakistan (Million ton)

Province/Coal field SINDH Thar Lakhra Jherruck Sonda-Thatta Others Sub-Total BALOCHISTAN Sor-Rangee/Degari Duki Khost-Sharig-Harnai Mach-Abegum Pir Ismail Ziarat Chamalong Sub Total PUNJAB Central Salt Range Eastern Salt Range Makerwal Sub Total Grand Total Measured Indicated Hypothetic Total

3,407 244 106 60 82 3,899

10,323 629 310 511 303 12,076

81,725 455 907 2197 1881 87,165

80,051 932 80,983

175,506 1,328 1,323 3,700 2,266 184,123

15 14 13 09 2 1 54

11 2 13

19 25 63 14 8 5 134

16 16

50 50 76 23 12 6 217

29 21 05 55 4,008

16 08 24 12,113

02 09 11 87,189

145 145 81,144

235 235 184,575

Table - 3 Import of Coal Unit Ton TOE Import value of import -0.70% 13.75% 46.05% 76.74% 18.57% -14504%
Including coal imported by Pak Steel for use as coke. Include 48,356 ton of metallurgical coke imported by Pak steel. Source: Federal Bureau of Statistics, Pakistan Steel Mills Corporation.

2000-01 625,005

2001-02 710,916

2002-03 1,578,169 1,038,277

2003-04

2004-05

2005-06 2,842,829 1,870,297

ACGR 24.5%

950,000 1,080,584

2,789,238 3,307,168 1,835,040 2,175,786

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INDUSTRIAL ADVISORY REPORTS

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integrated coal mining and commissioning coal fired power-generating plant. Government has also established a coal mining company for harnessing Thar coal resource.

Chemical Engineering Group Corporation (CNCEC) to conduct feasibility study on a coal block in Sonda Jerrick coalfields in Sindh.

US Firm Starts $5 Billion Methane Gas Project Projected Coal Requirements

It is expected from the facts bellow that coal use in future will increase due to: Pakistani industry is largely based on Gas as fuel and its reserves are dwindling rapidly.
z z Gas prices have increased in the last two years by nearly 40 percent.

A US company, Soneri, has started work on $5 billion project for discovery of coal-bed methane gas under the layers of coal reserves in Sindh. According the details, Sindh cabinet on December 24, 2006 gave approval, in principle, to an agreement for exploration of methane gas in coal reserves in the province, according to Sindh Mines & Mineral Development Department. An MoU was signed with Soneri on November 27, 2006 during the US visit of President Pervez Musharraf. The company started survey of coal reserves for which special aircraft of Marine Corps of United States were used as traditional aircraft could not determine the availability of methane gas. The company would drill 400 to 600 holes at every coal reserve which would then be connected through modern system. In the first phase, the company has planned to make investment of $5 billion. At present, there exists no law with regard to gas discovery. Therefore, Sindh government has made some rules. However, before their enforcement, the provincial cabinet would carry out scrutiny so that no legal hitch remains in the project. In this regard a committee has been formed comprising Secretaries of Law, Mines and Mineral Development, Finance and Industries, which has been directed to carry out vetting of the rules and submit its report. According to an estimate, there are 25 trillion cubic feet methane gas reserves in the province.This gas can be used as piped, and also be converted into petrol or diesel and used in the production of chemicals. The company would be responsible to bring in entire equipment for gas exploration, and Sindh government could levy excise and other taxes, which previously was the subject of federal government.

Gas availability will be reduced from 2009 and hence many industries would have to be converted on coal.
z

Potential Users of Coal

Power Plants: It is projected that power projects in Vinder and other areas will start importing coal from 2007. About 7 projects are expected to commence consuming over 1,200,000MT coal per annum.
z

Hasan Associates project is also based on Thar coal mine.

z z Sugar Mills: Some sugar mills are contemplating of conversion to coal firing. After their conversion the consumption would increase by 500,000 MT per year.

Solvent Extraction Plants: Many edible oil producing units are studying to convert their plants on coal firing, presently based on gas or gas fired generators.
z

Textile Mills: Some mills are considering conversion on coal as reliability of gas supply beyond 2009 is not sure.
z

As a part of promotional activities to increase share of coal, the Government of Sindh has leased out a coal block to M/s Fatteh Group of Hyderabad to commission a coal-based power plant of 250 MW in Lakhra coalfield. Government has signed an agreement with Chinese company M/s China National

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INDUSTRIAL ADVISORY REPORTS

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Table - 4 Total Estimated Coal Consumption (MT) Year Cement Mills Brick Kilns Sugar Mills Power Plants Textile Mills Chemical & Others Solvent and Others 5,000,000 1990-91 2,500,000 1,200,000 3,000,000 500,000 1,000,000 600,000 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Total 14,000,000 1998-99 1999-00 Table - 5 Coal Purchased from the Countries 2002 to 2006 Country South Africa China Indonesia Australia Russia Source: Private Importer % 24 24 50 1 1 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2007* 2008* Jul-Mar 2005-06 2006-07
*Estimated

Table - 6 Coal Supply (000 ton)

Imports 917 1,069 994 1,094 1,096 1,080 840 960 910 957 950 1,081 1,578 2,789 3,307 2,384 3,800 4,250

Production 3,054 3,099 3,266 3,534 3,043 3,638 3,553 3,159 3,461 3,168 3,095 3,328 3,312 3,275 4,587 4,871 -

1,700 2,825

2,500 2,589

Source: Hydrocarbon Development Institute of Pakistan (HDIP) and Economic Survey 2006-07.

Table - 7 Consumption of Coal by Sector 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 (Unit ton) ACGR

Sector

Domestic 447 2,837,872 1,269,664 50,000 22,370 950,000 625,005 205,782 92,067 4,044,652 2,009,552 -1.94% 9.00% 10.91% 2,199,880 2,519,881 4,408,620 4,889,755 111,591 91,101 294,421 203,623 184,992 82,765 6,064,722 3,300,491 24.03% 603,294 737,506 513,820 917,000 1,121,000 781,000 331,322 524,471 1,544,920 1,562,637 1,272,000 836,649 179,887 80,481 7,893,793 4,227,842 30.16% 663,584 957,169 2,508,238 2,535,168 1,153,194 1,166,305 1,158,518 1,747,875 2,577,546 2,606,852 2,589,445 3,906,738 478 497 468 4,211,825 1,888,845 2,778,379 1,722,646 564,450 371,352 149,334 66,812 7,713,988 4,049,654 -2.28%

998

1,069

1,111

1,047

8.3% 123.3%

Brick-Kiln Industry

Cement/Other Industry

Pak Steel

-9.9%
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Power (WAPDA)

-6.2% 13.8%

Total: Ton

TOE

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Annual growth rate

Note: Sectoral consumption data of coal is mostly not available, except for power sector and has, therefore, been estimated.

Estimated by deducing other uses of indigenous coal from the total production.

Including indigenous as well as impoted coal.

Imported coal/coke used as coke in Pak Steel.

INDUSTRIAL ADVISORY REPORTS

IAR 71 Coal/Power-III Sep 1-15, 2007

Source: Cement Factories. DG (Minerals), FBS, Pak Steel, PMDC, WAPDA

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Table - 8 Coal Imported by Sea Trade Group (the main importer of coal) 2002-2006 (Ton) Country South Africa Indonesia Chinese Australia Total 2002 405,675 87,998 Nil Nil 581,671 Table - 9 Comparative Transport Cost of Gas, Furnace Oil and Imported Coal in US$ 15.00 PMT Cost per KCAL of South Africa Coal at US$ 60.00 CNF Gas price per KCAL at revised tariff Furnace Oil per KCAL Rs 1.18 per KCAL Rs 1.80 per KCAL Rs 1.08 per KCAL 2003 393,498 330,930 164,882 Nil 889,250 2004 80,000 611,000 844,000 Nil 1,535,000 2005 312,400 1,213,000 431,000 Nil 1,956,400 2006 (estd) 450,000 1,500,000 400,000 80,000 2,430,000

percent of the cost while the rest will be covered by the Sindh government. The company would undertake mining projects for power generation, which is presently headed by additional secretary petroleum. After two foreign companies, a US and a Chinese, withdrew from coal mining in Thar, the Federal Government has decided to undertake the mining and power generation projects by itself to meet the future energy needs of the country. The companies withdrew because of problems related to shortage of surface water in the area and tariff dispute with Wapda. The 175 billion tons of total coal deposits in Thar have been divided into six mining blocks. With a view to set up coal-fired plants the lease has been granted to two local firms, Hassan Associates and Associated Group. The Sindh Coal Authority has decided to carry out a hydrological study to explore underground or surface water resources required in abundance for

To speedup work on coal mining in Sindh the Federal Government has set up a Thar coal mining company to make use of vast reserves for power generation. The federal government will bear 80

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INDUSTRIAL ADVISORY REPORTS

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Figure - 1 Sector-wise Coal Consumption Total 7.71 Million Ton 2005-06

Figure - 2 Coal Consumption Total 4.05 Million Ton 2000-01

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INDUSTRIAL ADVISORY REPORTS

IAR 71 Coal/Power-III Sep 1-15, 2007

coal mining and human consumption. The ministry has reserved the entire coal deposits in Thar for power generation and miners are restricted to sell the coal in the local market. The ADB has initially allocated a sum of $5 million for carrying out studies in the Thar coal area producing electricity and has asked the Sindh ministry of minerals to submit schemes eligible for banks financing. The amount will further be increased, when the ministry submits detailed schemes for the development and mining of coal deposits. The ministry has, so far, signed eight MoUs with the private sector companies, including a Chinese firm for mining coal for setting up power plants in the province. However, the success of these projects would depend on the tariff offered by Wapda to these companies for the purchase of power, water availability and security of foreigners working here. As oil prices are increasing in the world market it seems that in future coal would be the principal source of energy, all over the world as well as in Pakistan. In 1992, as the news of Thar coal reserves spread globally, a number of foreign and local investors showed interest in the exploitation of Thar coal resources for power generation. In response to the Energy Policy, Consolidated Electric Power Asia Ltd of Hong Kong signed a Memorandum of Understanding (MOU) for developing a 1,425 MW capacity integrated power project based on Thar coal, but could not be materialized. However, related activities on the part of the government continued and it formulated a liberal Policy and a favorable atmosphere for power generation for using indigenous coal. A coal exploration project to demarcate at least four specific tracs/blocks, through close spaced

drilling was finalized by GSP. The project was aimed to explore and evaluate coal resources in four blocks consisting of about 50 sq km each in Thar area for power generation. Setting coal-based power projects exploiting large Thar coal reserves has especial significance in the present energy scenario, because they would reduce countrys dependence on imported furnace oil, besides providing cheaper electricity.

Coal Consumption
Presently, Coal is being used only 1.9 percent for power generation in Pakistan compared to 90 percent in Poland, 77 percent in China, 58 percent in Germany, 54 percent in India, 50 percent in Australia and 38 percent in Russia, figure - 1 and 2.

Thar Coal Reserves

The 175 billion ton coal reserves of Thar coalfields are spread over an area of 9,000 to 10,000 square kilometers that has been divided into four blocks of coal demarcation for administrative and logistic purposes. The presence of coal in Thar was first indicated in the drilling for fresh water by British Overseas Agency (BOA) in 1988 near the village of Khario Ghulam Shah, about 15 km east of Islamkot. This lead to a modest 4 bore hole coal test drilling programme by GSP/USGS, which confirmed the presence of the thickest coal beds, yet found in Pakistan, with a maximum thickness of 30 meters of coal. Another 10 test holes were drilled by John T.Boyd, under a contract, by the end of 1993 for getting data for determination of mining engineering parameters. GSP/USGS drilled 3 additional bore holes in January, 1994.

Table - 10 Thar Coal Reserves/Resources as on June 30, 2006

Specific Block/Field Area (Sq. km) Resources 122.0 55.0 99.5 80.0 356.5 8,643.5 9,000.0 217 2,700 9,395 50 392 3,556 167 2,308 5,839 42 637 1,640 282 1,568 49,138 50,706 41 411 1,337 258 43 640 944 41 620 1,918 1,028 112,705 112,705 Resources Resources Drill Holes Measure

Reserves/Reserves (Million Ton) Indicated Inferred Hypothetical

Total

3,566 1,584 2,006 2,559 9,715

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Block-I (Sinhar Vikian-Varvia) Block-II (Singharo Bhitro) Block III (Saleh Jo Tar) Block IV (Sonal Ba) Sub-Total (Block I-IV) Rest of Thar coal field Total (Thar coal Field)

165,791

175,506

Mineable Reserves:

60% of Measured Reserves Having a high degree of geological assurance, coal lies within a radius of 0.4 km from a point of coal measurement. Having a moderate degree of geological assurance, coal lies within a radius of 0.4 km to 1.2 km from a point of coal measurement. Having a low degree of geological assurance, coal lies within a radius of 1.2 to 4.8 km from a point of coal measurement. Undiscovered coal resources, generally extension of inferred in which coal lies beyond 4.8 km from a point of coal measurement.

Measured Reserves:

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Indicated Reserves:

Inferred Reserves:

Hypothetical Resources:

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Source: Geological Survey of Pakistan.

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Location
The Sinhar Vikian-Varvai Block is situated about 15 km east of Islamkot, which is 45 km west of Mithi, a town on Mirpur Khas-Nagar Parkar route, in Thar Desert of Sindh Province. The Thar Desert of Pakistan is a part of much larger desert extending to the north and east into India and is bounded on the west by Indus River flood plains.

The cumulative drilling was 9674.63 m. Another 12 non-cored bore holes were drilled by a private contractor with an average depth of 250m.

Figure - 3 Per Capita Availability (TOE)

Accessibility
The area is accessible by metalled road from Karachi up to Mithi, via Hyderabad Mirpur Khas Naukot and via Thatta Badin Naukot at an approximate distance of 410 km. From Mithi onward there are sandy tracks to be covered by 4x4 wheelers. The rail link from Hyderabad is up to Naukot about 50 km, from Mithi.

Quality
The studies confirmed that the Thar Coalfield has lignite B in rank with an average heating value of 5333 Btu/lb having 1.57 percent sulphur, and 8.83 percent ash. Average moisture is 48.57 percent. The shallowest coal is at a depth of 137.04 meter, while the deepest is at 244 meters. The age of Thar coal ranges from Paleocene to Eocene. Initially, the 50 sq.km area of first block was selected in Sinhar Vikian-Varvai for drilling of close spaced holes. The work was started during the month of July, 1994 and completed in June, 1995. During this period a total number of 41 bore holes, 29 cored and 12 non-cored, were drilled with an average depth of 250 meters per hole. Out of the total 29 cored bore holes average of 80 meters the upper part was non-cored holes and rest was cored. In the upper non coring part representative samples were collected after every 3 meter interval. Coal quality is determined through chemical analysis as well as petrographical studies. The chemical studies were based on the proximate analysis as well as Btu/Lb values and sulphur percentages. The petrographic studies were undertaken to find out the maceral percentages of coal. Very low strength materials comprise the strata in southern Thar coalfield. Geotechnically they can be classified as very stiff soil. Principles of soil mechanics can be applied in the slope stability analysis because of the absence of any geological discontinuity in the strata except the presence of thin horizontal bedding planes. Top sand cover (extending up to more or less 60 meter below the surface) and the presence of the incompetent layers of uncemented sand and clay shale in the strata call for careful analysis of stability and design for excavation.

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INDUSTRIAL ADVISORY REPORTS

IAR 71 Coal/Power-III Sep 1-15, 2007

Computation of Coal Reserves

For calculating Measured and Indicated reserves reliability circles are drawn with 0.4 and 1.2 km. radio respectively Measured reserves around each drill hole was calculated separately. The Indicated reserves areas of all the drill holes overlap the adjoining drill hole areas, due to close spaced drilling. Indicated reserves were computed by multiplying total indicated resources area with the average of cumulative thickness of coal the specific gravity. The overlapping part of the Measured and Indicated categories were divided into two halves and the overlapping area calculated by graphic method. The Inferred reserves were computed on the basis of the total area of the block and then subtracting the area covered by the Measured and Indicated reserves categories. Average specific gravity of the coal and average of the cumulative thickness were used for the purpose of reserve computation.

Coal Chemistry
The chemical and pictographically characterization of coal of Sinhar Vikian-Varvai is based on the samples of coal of four bore holes.

Heating Values
The average heating values of Thar coals is 5333 Btu/lb and the coal is Lignite B in rank according to ASTM standards, indicates report of IJSGS 1994. The available heating values of Sinhar Vikian-Varvai block-I are slightly higher than the general Thar coal and falls in range of Lignite A - H. However, as received values are more important in the sense that the coal is used as dug out from the ground. The heating value based on MMM Free (moist, mineral matter free) of Thar coalfield are on the average, 5747 Btu/lb and those of Sinhar Vikian-Varvai Block are 6866 Btu/lb.

Ash
The average value of ash in Thar coalfield is around 8.83 percent. This shows incombustible inorganic residue when coal is burnt and represents the bulk of mineral matter after the volatile compounds arc driven off (CO2, 02 and H2O). Coals with high ash contents are generally less suitable for utilization. The ash content is approximately 8.17 percent which is not much different than the overall average of the coal field. However, generally the ash content is less in the thick coal seams which is a redeeming factor.

Description of Reserves
The total estimated coal reserves of all categories of this block are 3.56 billion ton. The breakup of different categories of reserve is as under; 1. Measured Reserves 2. Indicated Reserves 3. Inferred Reserves 620.42 million ton 1918.06 million ton 1028.43 million ton

The Indicated reserves are 1918 million metric ton covering an area about 65.7796sq.km, while the Inferred reserves are 1028 million metric ton covering an area of about 35.27sq.km. The parameter for the computation of Indicated and Inferred reserves are different from the Measured reserves. In this case, average cumulative coal thickness of the drill holes have been used rather than coal bed wise.

Fixed Carbon
Fixed carbon is not determined directly but is simply the difference between the sum of other components (moisture, volatile matter, ash) and 100 percent of an air dried coal. Fixed carbon content is used as an index of yield of coke on carbonization.

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The fixed carbon of Sinhar Vikian-Varvai block ranges from 18.72 to 21.38 percent, on as received basis while the average value reported, on as determined basis, is around 20.38 percent.

Volatile Matter
This is the component of coal minus the moisture which is liberated at high temperature in the absence of air. It can be liberated either from organic matter or mineral impurities and this difference should not be overlooked. The weighted average of volatile matter in Sinhar Vikian-Varvai block received basis is 31.15 percent.

sulphate. The total sulphur contents in the Sinhar Vikian-Varvai coal are reasonably low. Sulphur is used as a pollution indicator. Sulphur can give rise to erosion and damage boiler besides causing atmospheric pollution. The weighted average sulphur content of analysed bore holes in the investigated block on as received basis is 1.37 percent. However, no definite pattern of sulphur constant is observed in Thar area but in the thickest beds the sulphur content is on the lower side. The sulphur contents in Lakhra and Sonda area are generally higher than the Thar area. In Lakhra the total sulphur contents range from 2 to 7 percent and in SondaThatta area from 0.05 to 5.00 percent and they are generally comparable.

Moisture
The moisture can be surface moisture, hydroscopic moisture decomposition moisture or in the form of mineral moisture. The weighted average of moisture in Thar coalfield is around 48.57 percent which is almost half of the coal weight. The distribution of moisture pattern is random. In the Sinhar VikianVarvai block the average moisture content, on as received basis, is 40.10% which is slightly less than the average value of the general coalfield. As the coal classification progresses the contents of oxygen and hydrogen are reduced and carbon is increased they can be used as rank indicators. Except nitrogen the other elements i.e. oxygen, hydrogen and sulphur are also found in the mineral matter contents of coal beds, hydrogen and oxygen are also liberated from the moisture contents. The percentage of nitrogen is important to indicate the pollution possibility of coal on combustion.

Coal Petrography
Coal petrography is a comparatively recent field of science which characterizes the coal quantitatively with the help of microscope to predict its behaviour. These scientific studies were not adopted in the characterization of Pakistans coal resources till 1988. Therefore, it is desirable to introduce the basic concepts and approach with reference to Sindh coal, especially coals of Thar area. The basic purpose of coal characterization thorough petrology/petrography is necessary to describe its constituents, to determine its properties and interpret its occurrence and environments of deposition. Coal macerals are classified into three groups on the basis of their morphology and physical and chemical characteristics. These groups are; (a) Vitrinitc, (b) Inertinile, (c) Litinits. The classification for hard coals (bituminous) and soft/brown coal (lignite to sub-bituminous) is different but the main difference is in the Vitrinite group. In brown coals it is called Huminite group a precursor ofvitrcimte. The brown coals are mostly ofCenozoic age and formed by angiosperm plants. The hard coals are mostly of Paleozoic age and formed by gymnospcrm plants.

Sulphur
Sulphur can occur as organic sulphur in the hydrocarbon compounds of the coal, as sulphide minerals such as pyrite etc., or in the form of calcium