HARNESSING OF COAL RESOURCES OF SINDH PROVINCE

December 12, 2003

Sindh Coal Authority

(Government of Sindh)
1

Coal Deposits of Pakistan

1.

PROVINCE-WISE
PUNJAB BALUCHISTAN NWFP SINDH TOTAL

BILLION TONNES 0.257 0.196 0.082 184.123 184.658

2.

COAL DEPOSITS IN SINDH

LAKHRA DISTT. DADU SONDA-JHERRUK DISTT. THATTA EAST INDUST DISTT. THATTA JHIMPIR-METTING DISTT. THATTA BADIN THAR 1.328 5.512 1.5 0.161 0.016 175.506
2

COALFIELDS IN SINDH - MAP

Lakhra KHI 193 km Badin KHI 192 km Sonda KHI 150 km Metting Jhimpir KHI 200 km

Thar KHI 380 km

3

Institutional Arrangements to Develop Sindh Coal

Mines & Mineral Development Sindh established on 22.08.2001

Department,

Sindh Coal Authority established under the Sindh Coal Authority Act, 1993 governs through a Board headed by Minister for Mines & Mineral Development, Sindh. Task Force headed by the Prime Minister, Islamic Republic of Pakistan.
4

Sindh Coal Authority

(An exclusive agency to harness Sindh coal resources)

1. Functions: Exploration of Coal include: Exploration Development Mining Processing Utilization Research and Development. Coordination of Infrastructure Development Conduct problem oriented research. Development of indigenous technology. Promotion of foreign investment. 5

Sindh Coal Authority

(An exclusive agency to harness Sindh coal resources)

2. Objective:
Exploitation of indigenous coal, which will lead to: Self-reliance Contain shifting of people from rural to urban centres. Poverty alleviation Sustainable power generation programme Contain de-forestation Gasification, liquefaction, briquetting, pulverization of coal.

3. Strategy:
Geological investigations and studies Infrastructure development Promote private investment Appropriate coordination Assist the investors.

Lakhra coal-field: Highlights

1. 2. 3. 4. Distance from Karachi Area Coal Reserves Chemical Analysis of Coal:
Moisture (AR) Ash (AR) Volatile Matter (AR) Fixed Carbon (AR) Sulphur (AR) Heating Value (Av.)

193 km. 1309 sq. km. 1.328 Bn. Tonnes.

28.9% 18.0% 27.9% 25.2% 4.7% to 7.0% 4,622-7,554 Btu./Lb.

5. Exploration & Evaluation of North Lakhra Coalfield has been sponsored with an estimated cost of Rs.38.516 7 million. The study is at the stage of award.

Thatta-Sonda-Jherruck coal-field: Highlights

1. Distance from Karachi. 2. Identified area 3. Shallowest Coal Bed 4. Deepest Coal Bed 5. Coal Reserves (Billion Tonnes) 6. Chemical Analysis Moisture (AR) Volatile Matter Fixed Carbon Ash (AR) Sulphur (AR) Heating Value (AR) Btu./Lb. 31.23-34.72% 27.9% 25.2% 7.69-14.7% 1.38-2.82% 6,780 - 11,029
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150 km (approx.) 1206 sq. km. 37.8 m. 265.28 m. 7.112

Indus East Coalfield - Highlights

1. 2. 3. 4. 5. 6. 7. 8. 9. Explored area Drill Hole Coal reserves Coal Rank Ash (AR) Sulphur (AR) Calorific Value (AR) Thickest coal bed Moisture (AR) 616 sq. km. 16 1.5 billion tonnes Lignite-B to Sub Bit.-B 15.2% 2.6% 6,300 to 8,000 Btu. 2.40 meters 33.1% 27.7% 23.9%
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10. Volatile Matter (AR) 11. Fixed Carbon (AR)

Highlights of Thar Coalfield

1. 2. 3. 4. 5. Thar Desert area (approx.) Coal-field area Total Drill Holes Coal Deposit Coal Reserves (Billion Tonnes): 22,000 Sq. km. 9,100 sq. km. 217 175.506 bn. tonnes.

6.

Thar Coal Analysis

Coal Quality Moisture (AR) Ash (AR) Volatile Matter (AR) Fixed Carbon (AR) Sulphur (AR) Heating Value (Av.)

Lignite A-B 46.77% 6.24% 23.42% 16.66% 1.16% 5,774 Btu./Lb.

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Investigated Blocks at Thar

B

Shenhua Block Area = 50 sq.km.

C A

Rheinbraun Block Area = 20 sq.km.

Investigated Blocks and Shenhua Group/RE Blocks at Thar coal-field

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Thar Coal-field (Investigated Blocks) Block-wise deposits

Block Block-I Block-II Block-III Block-IV Sub-total Rest of coalfield Total Area (sq. km.) 122 55 99.5 80 356.5 8,643.5 9,000 Drill Holes 41 43 41 42 167 50 217 Reserves (Million Tonnes) 3,566 1,584 2,006 2,599 9,715 165,791 175,506

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Thar Coal Findings Chinese Report

1. 2. 3. Gas Coal dust Analysis not reveal availability of Methane gas. Each coal bed possess explosive natural dust explosion.

Self All the coals are the self combustion types combustion trial of coal Stripping Ratio 5.30 upwards

4.

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Other useful mineral and raw elements in Thar 1. 2. 3. 4. 5. Germanium (Ge) Gallium (Ga) Uranium Humic acid Benzene Extract 338 samples from 32 drill holes. 357 samples from 32 drill holes. 193 samples from drill holes 278 samples from 33 drill holes. 228 samples from 28 drill holes.

The calorific value is 11.10-17.64 MJ/Kg averagely 13.22 MJ/Kg belonging to low-medium calorific value, easily grinded, poor thermal stability, strong reactivity to CO2, strong clunker, rich Tar and high humic acid. Other uses: gasification, liquefaction, power generation, and humic acid extraction.
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Lignite - Products
Electricity Briquettes Pulverized lignite Fluidized-bed lignite Coke 860 kWh 400 kg 360 kg 380 kg 250 kg 190 m3 160 l 580 m3

1,000 kg

Substitute natural gas Fuels Synthesis gas

15

Lignite Producing Countries in Europe Country

Germany Greece Turkey Poland Czech Republic FR Yugoslavia Bulgaria Romania

Production
(In Million Tonnes)

168 64 64 60 51 37 26 25

16

Share of Lignite in Power Generation -2000 Country

Macedonia Greece Czech Republic FR Yugoslavia Bosnia-Herzegovina Bulgaria Poland Slovenia Romania Turkey Germany

Power Generation
78% 69% 66% 66% 56% 40% 34% 34% 30% 28% 26%

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COAL IN ELECTRICITY GENERATION

USA UK Australia Germany China India S. Africa Poland Czech Rep. Greece Denmark Netherlands World Average 52% 58% 77% 52.5% 78% 77% 88% 96% 72% 67% 47% 28% 39%

Source: World Coal Institute, London, December, 2002. Share of coal in Electric Power Generation in Pakistan 18 is less than 1%.

Projects identified
For Development of Sindh Coal Resources

Shenhua Group Corporation of China

Thar Coal Project - Main Features:
Development of an integrated coal mine and minemouth power plant. Initial capacity of power plant = 2 x 300 MW Project will be executed on BOT basis 50 sq. km. area delineated for the geological investigation Detailed Coal Geological Investigation (DCGI) within six months by Shenhua Group Corporation. Feasibility Study of Thar coal for 2 x 300 MW coalfired power station by Shenhua Group Corporation.
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Shenhua Group Corporation of China

(Latest Progress)

Shenhua Group has completed a Geologic Report under DCGI and submitted to Govt. of Sindh, which is positive. As a result of meeting of the President of Pakistan during his recent visit to China with Shenhua Group, they deputed a team of 170 members for conducting the hydrological survey. 20 members advance arrived on 11.12.2003 for hydro geological study remaining team of 150 members are expected in last week of December. They are in the field. Hydrological studies would be conducted over an area of 650 sq. km. under a contract provided by them. 21

Underground Coal Gasification Project at Thar

A consortium of Middle East Link Pty. Ltd. and PICT Energy of Australia will undertake underground coal gasification and power generation project at Thar. An MOU in this regard has been signed on 26.09.2002 at Karachi. The company will undertake the feasibility study within a period of 15 months, which has been lapsed. The sponsors have requested for extension of the MOU, which is under consideration.
22

Use of coal by Cement Industry

Cement industry in Pakistan is in process of converting their fuel system to coal, because, it is cost effective. Conversion of entire cement industry would require around 2.5 million tonnes of coal annually. Coal requirements of cement industry have been reached more than 1.0 million tonnes. At present, annual coal production of Sindh is around 2.0 million tonnes, which could be enhanced very conveniently.
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Continued Presently, in Sindh, coal is being mined from Lakhra-Metting coalfield. Lakhra coal has high content sulphur and ash. For cement use low ash, low sulphur coal is prerequisite. GOS has signed MoU with Shahzad International of Lahore for establishment of Coal Washing Plant at Lakhra. The pre-feasibility study report submission period has been lapsed. The sponsors have requested for extension.
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Bankable Feasibility Study of Thar Coal Mining (BFS)

Terms of Reference
Preparation of Thar coal mining feasibility study to provide details to the potential investors to plan further for projects based on coal utilization. Design, conduct, manage and interpret in exploration programme to a level of confidence for a bankable feasibility study for about a 1000 MW minemouth power station. Coal reserves for a minimum period of 30 years. Determine the most economic, efficient and reliable technology to operate the coal mine. Determine the minemouth cost per tone of Thar coal at a price lower or equal to prevailing international pit mouth price of lignite. Conduct all geo-technical studies, environmental impact analysis. hydro geological &
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Continued - BFS

Study awarded to M/s. Rheinbraun Engineering of Germany at a cost of Euro 2.930 million in February, 2003, is to be completed within 18 months. Steering Committee headed by the Minister for Mineral Development, Sindh is monitoring the scheme.
The study inception report has been submitted, which presents the design and specification of the exploration programme and the power plant, lignite pre-drying and water treatment plant, shows up the scope of work for the next period and gives the yearly lignite demand and the implementation schedule. The report concludes that water & lignite are available.

Drilling has been completed. RE has also submitted interim report.

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Continued - BFS
The mine area outlined and located in block-I shows up about 520 million tons of lignite, which is quite sufficient to feed 1000 MW power plant for more than 50 years. The coal overburden 1:6 striping ratio. RE suggests to operate with closed cooling circle process with covered coolers to minimize the water losses for the power plant operation.

Two water sources are available in the Thar desert area: First the drying and recondensation/recovery of water from the raw lignite. Second the water withdrawn from the different aquifers for a dry mine operation.

27

Continued - BFS

Most of water for operation of 1000 MW will be derived from the lignite with the drying process. The data, calculations and considerations give a clear picture that the 1000 MW power plant and the mine can be operated in the Thar desert area without any problem. A delegation headed by the Minister for Mines & Mineral Development, Sindh visited Germany for demonstration of the technology for converting the excessive moisture from coal as a source of water for power plant by lignite drying technology already being experimented by the RWE Rheinbraun.
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WTA-Technology for Thar

RWE Power has developed the WTA-Technology continues to develop the WTAtechnology will license the WTA-technology => Extraction of water from Thar lignite is feasible and viable
WTA= Method for drying lignite in fluidized bed with utilization of Thar vapour energy.
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Why Lignite Drying?

Extract water for other utilisation Nearly doubling calorific value Raise efficiency of power stations

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Benefits of WTA Technology

Energetically very efficient Quasi-emission free drying Largely self-sufficient in terms of steam High safety standard (inert atmosphere) High drying capacity (continuous process) Release of the evaporated water as an almost solids-free condensate
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Highlights of RWE Presentation

Established in 1898 activities in power generation Turnover of 46 Bill. per year (2002) worldwide About 13100 employees (2002) worldwide.
Business fields Key figures FY 2002 (rounded)* Sales Operating result Workforce Power generation Capacity mill. mill. FTE TWh MW 7,300 1,330 20,000 190 33,000
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Continental power generation based on lignite and hard coal, nuclear energy, gas, hydropower, wind, photovoltaics and biomass, lignite upgrading and production of energy resources, i.e. lignite and hard coal, mineral oil and gas

Visits to Coal Mines

Inden Coal Mines: The geological formations are more or less similar to Thar coalfield. Annual production is 6 million tonnes of coal. Lignite is used in power generation plants. In comparison the coal is deeper than the Thar coal.

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Continued
Hambach Coal Mines One of the biggest lignite mines operated by RWE since 1984. Annual production is 40 million tonnes of lignite Coal utilized at NeiderauBem plant (3900 MW); Neurath (2250 MW) and Frimmersdorf (2400 MW). Coal is being transported by railway system. Overburden 240 million tonnes Stripping ratio 6:1 (m3 t) Depth 350 meters Bucket Wheel Excavators installed Dewatering aspect Dewatering before mining. Annual quantity of some 600 m3 of groundwater. Keeping safe from water inflow. Stabilise the slopes of mines.

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Benefits of indigenous fuel/coal

Self-reliance Reliable & less expensive fuel Generation of massive economic activity. Direct and indirect employment and business avenues. A sustainable power generation programme Poverty alleviation Massive saving in foreign exchange Contain shifting of population from rural to urban areas.
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Sindh Coal Authority

(Development Programme 2003-04)
S. No. 1. Scheme/Project Cost (Rs.) (Million) 198.000 Allocatio n 2003-04 0.700 Progress

Bankable Feasibility Study of Thar Coal Mining (80:20) Assessment of Water Resources of Thar Coalfield Town Planning at Islamkot

First phase has been completed. Second phase is in progress. Similar studies conducted by Chinese & German. This assessment will be based on the reports from them. An amount of Rs.1.040 million has been released. Scheme is executed by Local Govt. Deptt. (Town Planning).

2.

70.000

50.000

3.

2.352

2.080

36

Continued
4. Construction of Airstrip at Islamkot (including feasibility study) 120.000 5.656 SCA in consultation with Civil Aviation Authority has invited the Technical & Financial proposals through press. After evaluation of the proposals, the Technical Committee has submitted its report. A Steering Committee is being constituted for selection/award of the contract. The scheme has been approved. Works & Services Department as Executing Agency. Administrative Approval issued. The scheme has been approved. Works & Services Department as Executing Agency. Administrative Approval issued. The scheme has been approved. Works & Services Department as Executing Agency. Administrative Approval issued. This scheme to be funded by Federal Govt. PC-I being prepared by Works & Services Department as Executing Agency. 37

5.

Construction of road from Wango to Modhar (21 kms.) Construction of road from Modhar to Rohiro (21 kms.) Construction of road from Rohiro to Mithi (21.5 kms.) Improvement of road from Hyderabad to Kantio (185 kms.)

145.508

45.000

6.

144.553

10.000

7.

153.994

45.000

8.

130.000

1.000

Continued
9. Improvement of road from Kantio to Chachro (30 km) 96.709 1.000 PC-I has been forwarded to Federal Government (M/O Finance) seeking their financial support as announced by the President of Pakistan during the presentation on 16.05.2003. A. A. has been issued. PC-I has been forwarded to Federal Government (M/O Finance) seeking their financial support as announced by the President of Pakistan during the presentation on 16.05.2003. A. A. has been issued. PC-I has been forwarded to Federal Government (M/O Finance) seeking their financial support as announced by the President of Pakistan during the presentation on 16.05.2003. A. A. has been issued. PC-I has been forwarded to Federal Government (M/O Finance) seeking their financial support as announced by the President of Pakistan during the presentation on 16.05.2003. A. A. has been issued. 38

10.

Improvement of road from Chachro to Islamkot (56.32 km)

149.999

1.000

11.

Rehabilitation of Padrio to Mithi Road (25.74 km.)

157.467

20.000

12.

Rehabilitation of Road from Naukot to Padrio (22.5 km.)

105.610

20.000

Continued
13. Up gradation of MithiIslamkot Road (40.23 km) New Scheme 140.041 25.000 PC-I has been forwarded to Federal Government (M/O Finance) seeking their financial support as announced by the President of Pakistan during the presentation on 16.05.2003. A. A. has been issued. The scheme has been approved by PDWP and is reflected in ADP 2003-04. The PC-I has been forwarded to Federal Government (M/O Finance) for financial support. A. A,. issued. PC-I has been forwarded to Federal Government (M/O Finance) seeking their financial support as announced by the President of Pakistan during the presentation on 16.05.2003. A. A. has been issued. PC-I is being prepared by Works & Services Department.The scheme is not approved.

14.

Construction of road from Islamkot to Nagarparkar with link to Gurah

95.868

100.000

15.

Construction of road from Islamkot-Gurah road to Sanghario (20 km.)

139.779

1.000

16.

Construction of Bye-Pass for Naukot and Mithi (New Scheme)

36.00

36.00

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Continued
17. Construction of Bye-Pass for Jhudo (New Scheme) Construction of new road from Islamkot to Airport Road (New Scheme) Pipeline water supply scheme Mithi to Islamkot Pipeline water supply scheme Islamkot to Coal mines (Thario Halepota) Water Supply Line from Naukot to Islamkot upgradation. Exploration & Assessment of Coal Resources of Northern Lakhra Coalfield 15.179 15.179 The PDWP approved the scheme in principle on 31.03.2003. PC-I/PC-II is being prepared by Works & Services Department. The scheme is not approved. The scheme is executed by Local Govt. through D.G. (Tech.) LGD Hyderabad. Work in progress. The scheme has been approved and is under tender process. PC-I is being Department. prepared by L.G.

18.

50.000 (Unappr.) 188.212

25.00 (FFP) 158.212

19.

20.

113.675

130.00

21.

13.00 (un-appr.) 38.516

13.00

22.

31.114

Approval to award of the study to M/s. Northeast Coal Geological Bureau, China has been pursued. An amount of Rs.15.557 released on 30.10.203. 40