1. Thar Coal a Cheap and Sustainable Energy Resource of Sindh for PakistanBy
Professor Dr. Abdul Ghani Pathan
(Mehran University of Engineering and Technology, Jamshoro)
7 November, 2013

2. Thar Lignite Basin Exploration History of Thar Lignite Basin
Presence of the coal in Thar Desert was first reported by the British Overseas Development Agency (ODA) in 1991, while drilling the water wells.
First exploration work was conducted jointly by GSP and the USGS under the Coal Resources Exploration & Assessment Program (COALREAP) in 1994.
Various agencies have completed a detailed assessment of coal resources in twelve blocks at Thar coalfield
The coalfield, with a resource potential of billion tons of lignite, occurring at an average depth of 200 m and covers an area of 9,100 km2.
About 400km southeast of Karachi

3. Thar coalfield - map

4. Thar Coalfield: Highlights
Thar Coalfield is located about 400 Km east of Karachi city in south-eastern part of Sindh Province, Pakistan near the Indian border
Area of the coalfield sq. km
Coal reserves billion tones
Depth m and 250m (av: depth=200m)
cumulative seam thickness m m
Max: thickness of an individual seam m.
Lignite seams occur in Bara formation
Thickness of Bara formation is about 95m.
Bara formation is composed of siltstone, claystone and a sandstone.
Below the Bara formation the basement granite occurs at a depth of 100m to 220m.

5. Thar Coalfield Highlights (contd.)
Chemical Analysis (AR)
Coal Quality Lignite
Moisture to 49.01%
Ash to 6.56%
Volatile Matter to 33.04%
Fixed Carbon to 22%
Sulphur to 1.34%
Heating Value 4,078 – 6,850 Btu/lb
(Av: 5,561 Btu/lb)

6. Thar Coalfield Blocks

7. Outline of 12 Blocks of Thar coalfield
Table: Exploration Situation and Coal Resources
Block
Allocated
Investors
Exploring
Agency
Classification
System
Period
Total Drill
Holes
Area
(km2)
Resources (million tons) I
Sino Sindh Resources
GSP
GESCR 41
122
3,566
Rheinbraun Engineering
(Germany)
USGS
2003 30 40
1,003 II
Sindh-
Engro 55
1,584
2010
113
79.6
2,351
JORC-AusIMM
2,240
III-A
Couger
99.5
2,008
III-B 14
76.8
1,453 IV 42 82
2,571 V
UCG Project
CNCGB 35
63.5
1,394 VI
Oracle Coalfields 66
1,655
Oracle
JORC
2008 7
1,423
VII
DRD 52
100
2,175
VIII 58
3,035 IX 50
2,862 X
2011 45
2,870 XI
2012 31
101.46
1,612.05
1,585.79
XII
100.74
2,345.60
2,046.50
Total
1,432
39,780
Source: TCEB　

8. Mining Potential of Thar Coalfield
Exploration
Detailed exploration work has been completed in twelve blocks covering an area of 1432 km2.
Rest of the area (7668 km2) of Thar coal basin is yet to be explored in detail for:
Resource estimation
Identification of open pit and underground mining areas
Identification of the area(s) suitable for outside dump. This will help in avoiding the permanent loss of the resource.
Identification of the characteristics of Thar coal basin

9. Mis-conception about Thar Coal Mining
Many people think that
Thar coal can only be exploited by Open Pit Mining
WRONG THINKING

10. OPEN PIT OR UNDERGROUND
Stripping Ratio
Is the governing parameter, on the basis of which it is decided to exploit the coal by developing an open pit mine or an underground operation.

11. What is Stripping Ratio?
It is the ratio of
Overburden + interburden thickness
to the
Cumulative thickness of coal seams

12. Stripping Ratio at Thar
Stripping ratio = 4:1 – 88:1 (m:m) with an average value of 12.85:1 (m:m)
Cutoff stripping ratio is 10:1 (m:m)
47.74% of the coalfield area has the stripping ratio  10:1 (m:m), which means, 47.74% of the coal resource is feasible through open pit operation where as 52.26% of the resource is feasible through underground mining.

13. Blockwise Stripping Ratio
Min: S.R
Max: S.R
Av: S.R
S.R  10 (%)
S.R > 10 (%) 01 5
24.7
9.58
60.47
39.53 02
5.2
22.5
8.95
74.42
25.58 03
6.6 26
13.05
19.51
80.49 3B
3.7
50.33
19.16
36.36
63.64 04
5.3
15.5
7.97
84.62
15.38 06
5.23
24.48
9.49 80 20 07
7.19
32.46
13.46
17.5
82.5 08 4
88.1
25.26
76.19
23.81 09
6.96
17.36
10.06
52.38
47.62 10
6.88
15.65
10.68 11
13.14
57.15
23.26 00
100 12
5.36
23.75
13.64
Overall
12.85
47.74
52.26

14. Mining Methods
Strip mining method would be used for open pit operation.
Longwall retreating method would be used for underground mining.
Thar coal geology and conditions are suitable for u/g mining

15. Longwall Retreating Method

16. View of longwall Operation

17. Coal Cutting at Longwall face
Shield Supports
Drum Shearer
Coal Face
AFC

18. Shield Type Powered Support
Canopy
Shield
Hydraulic Legs
AFC
Base

19. Roof Support for Longwall face

20. Longwall retreat mining at Thar
Initially we will drive two inclines from the surface to the bottom of coal seam (Development in rock)
Inclination of the inclines would be 1:4 (14)
Average depth = 200 m
Thickness of coal seam = 3 – 10 m
Length of each incline = 825 m
Development time in rock = 18 months

21. Longwall retreat mining at Thar (Cont:)
Panel dimensions = 150 m x 1,000 m
Development in coal = 2,250 m
Development period in coal = 18 months
Coal available during development =8,755 – 29,250 tonnes
Production from one face = Mton/year

22. Drivage of Inclines There are two main concerns in drivage of inclines
Loose sand will be grouted during advance by cement injection and shotcreting with wire mesh if required
Percolated water will be drained out
Advance can be done by means of mechanical excavation.

23. Advantages and Disadvantages of u/g Mining
Overall CAPEX is less in u/g mining
Effect of climatic conditions is minimised. During hot, stormy and rainy seasons production is not affected
Aqufiers can be managed better in comparison to surface mining
Extraction ratio is lower. Thin sections cannot be produced by u/g mining

24. Comparison of Surface and Underground mining operations at Thar coalfield
Parameter
Surface Mining
Underground Mining
Capital cost
US$ 1114 million for 6.5 million ton mine (as per approved mining feasibility of SECMC)
US$ 250 million for 3 million ton mine
Cost of coal per ton
Equipment variant-1=US$ 37.01/ton
Equipment variant-2=US$ 33.85/ton
(as per mining feasibility of SECMC)
US$ 35.00/ton
Development period
3.5 years
3 years
Availability of first coal
18 months
Area for outside dump
About 7 km2 area is required for outside dump for an open pit mine covering an area of 12 km2 and having the capacity of 6.5 million ton/year
No outside dump is required

25. Comparison of Surface and Underground mining operations at Thar coalfield
Parameter
Surface Mining
Underground Mining
Volume of outside dump
600 million bm3
No outside dump
Height of outside dump
85 m
Adverse effect of outside dump
Outside dumping area of 7 km2 will not be feasible for open pit mining operation because of the addition of 85m high waste material.
Ground water pumping required
35 million m3/year
(as per mining feasibility of SECMC)
5 million m3/year
Adverse effect of ground water pumping
Pumping of the huge quantity of ground water (i.e. 35 million m3/year) will badly affect the shallow aquifer, near the mining area, which is being used for the local people.
Very little effect on the shallow aquifer

26. Comparison of Surface and Underground mining operations at Thar coalfield
Parameter
Surface Mining
Underground Mining
Slope stability problem during monsoon period
During heavy rains in monsoon season, there will be a serious slope stability problem specially in dune sand.
Not applicable
Environmental impact
Complete displacement of villages and inhabitants from the mining area and surface facilities of the project.
No vegetation in the mining area till the reclamation is completed.
No displacement in the mining area except the surface facilities of the project.
Vegetation in the mining area will not be disturbed

27. ELECTRIC POWER SCENARIO OF PAKISTAN
Present status
Total installed generation capacity = 21,455 MW
Current generation of electricity = 12,775 MW
Current peak demand =18,860 MW
Short fall = 6,105 MW

28. Future Peak Demand (by NTDC)
High Case 8.9% p.a Base Case 7.9% p.a Low Case 6.7% p.a.

29. Power Generation Mix 37% comes from oil thermal, 31% from hydro,
Out of 21,455MW of installed generation capacity
37% comes from oil thermal,
31% from hydro,
30% gas turbine
2% nuclear, and
0.1% coal thermal (30MW only).

30. Power Generation from Various Fuels in the World
Coal is a major fuel used for generating electricity worldwide.
The world energy consumption by fuel (2005):
Fuel
Electricity Generation
Coal
40%
Gas
20%
Hydro
16%
Nuclear
15%
Oil 7%
Other 2%
Other includes solar, wind, waste etc.

31. COAL IN ELECTRICITY GENERATION (World Scenario)
Poland %
S. Africa %
Australia %
China %
Israel %
India %
USA %
Germany %
Pakistan %

32. Conversion of the power plants to Thar coal
GENCOs
Jamshoro units-1,2,3 & 4
Guddu units-3,4
M.Garh units-1,2,3,4,5 & 6
SPS Faisalabad unit-1,2
NGPS Multan unit-1
IPPs
HUBCO unit-1,2,3,4
AES Lalpir
AES Pakgen
SABA Power

33. Fuel cost comparison (on the basis of heating value)
Parameter
Thar coal
Lakhra coal
Australian & S.A. coal
Indonesian coal
RFO
Price/ton (US$) 35 37
119.6
116.4
779.85
Heating value (Btu/lb)
5561
6,000
11,523
10,443
18,900
Heating value (million Btu/ton)
12.260
13.228
25.404
23.023
41.667
Cost per million Btu (US$)
2.85
2.8
4.71
5.06
18.72
Note: Cost does not include GST and transportation component.

34. RFO cost per KWh for oil fired power plants
GENCOs
Power station
Installed capacity MW)
Derated capacity (MW)
Efficiency (%)
Btu required for
1 KWh (Btu)
RFO cost/KWh
(US Cent)
Jamshoro unit-1
250
205
33.46
10,200.2
19.09
Jamshoro unit-2,3,4
600
470
29.09
11,748.71
21.99
Guddu unit-3,4
420
300
31.74
10,753
20.13
M.Garh unit-1,2,3
630
545
33.47
10,197.2
M.Garh unit-4
320
245
33.77
10,106.6
18.92
M.Garh unit-5,6
340
29.70
11,491.58
21.51
SPS Faisalabad unit-1,2
132
100
25.13
13,581.38
25.42
NGPS Multan unit-1
195
120
25.58
13,342.46
24.98

35. RFO cost per KWh for oil fired power plants
IPPs
Power station
Installed capacity MW)
Derated capacity (MW)
Efficiency (%)
Btu required for
1 KWh (Btu)
RFO cost/KWh
(US Cent)
HUBCO unit-1,2,3,4
1292
1200
38.6
8,842
16.55
AES Lalpir
362
348
AES Pakgen
SABA Power
134
126
33.47
10,197.2
19.09

36. Thar coal cost per KWh for thermal power plants
GENCOs
Power station
Installed capacity MW)
Derated capacity (MW)
Efficiency (%)
Btu required for
1 KWh (Btu)
Thar coal cost/KWh
(US Cent)
Jamshoro unit-1
250
205
33.46
10,200.2
2.91
Jamshoro unit-2,3,4
600
470
29.09
11,748.71
3.35
Guddu unit-3,4
420
300
31.74
10,753
3.06
M.Garh unit-1,2,3
630
545
33.47
10,197.2
M.Garh unit-4
320
245
33.77
10,106.6
2.88
M.Garh unit-5,6
340
29.70
11,491.58
3.28
SPS Faisalabad unit-1,2
132
100
25.13
13,581.38
3.87
NGPS Multan unit-1
195
120
25.58
13,342.46
3.80

37. Thar coal cost per KWh for thermal power plants
IPPs
Power station
Installed capacity MW)
Derated capacity (MW)
Efficiency (%)
Btu required for
1 KWh (Btu)
Thar coal cost/KWh
(US Cent)
HUBCO unit-1,2,3,4
1292
1200
38.6
8,842
2.52
AES Lalpir
362
348
AES Pakgen
SABA Power
134
126
33.47
10,197.2
2.91

38. Imported coal cost per KWh for GENCOs power plants
Power station
Installed capacity MW)
Derated capacity (MW)
Efficiency (%)
Btu required for
1 KWh (Btu)
Australia+S.A coal cost/KWh (US Cent)
Indonesia coal cost/KWh
(US Cent)
Jamshoro unit-1
250
205
33.46
10,200.2
4.80
5.16
Jamshoro unit-2,3,4
600
470
29.09
11,748.71
5.53
5.94
Guddu unit-3,4
420
300
31.74
10,753
5.06
5.44
M.Garh unit-1,2,3
630
545
33.47
10,197.2
M.Garh unit-4
320
245
33.77
10,106.6
4.76
5.11
M.Garh unit-5,6
340
29.70
11,491.58
5.41
5.81
SPS Faisalabad unit-1,2
132
100
25.13
13,581.38
6.39
6.87
NGPS Multan unit-1
195
120
25.58
13,342.46
6.28
6.75
Total
2,967
2,325

39. Imported coal cost per KWh for IPPs power plants
Power station
Installed capacity MW)
Derated capacity (MW)
Efficiency (%)
Btu required for
1 KWh (Btu)
Australia+S.A coal cost/KWh (US Cent)
Indonesia coal cost/KWh
(US Cent)
HUBCO unit-1,2,3,4
1292
1200
38.6
8,842
4.16
4.47
AES Lalpir
362
348
AES Pakgen
SABA Power
134
126
33.47
10,197.2
4.80
5.16

40. Fuel cost comparison per KWh
GENCOs
Power station
Fuel cost/KWh (US Cent)
Thar coal
Australian & S.A coal
Indonesian coal
RFO
Jamshoro unit-1
2.91
4.80
5.16
19.09
Jamshoro unit-2,3,4
3.35
5.53
5.94
21.99
Guddu unit-3,4
3.06
5.06
5.44
20.13
M.Garh unit-1,2,3
M.Garh unit-4
2.88
4.76
5.11
18.92
M.Garh unit-5,6
3.28
5.41
5.81
21.51
SPS Faisalabad unit-1,2
3.87
6.39
6.87
25.42
NGPS Multan unit-1
3.80
6.28
6.75
24.98

41. Fuel cost comparison per KWh
IPPs
Power station
Fuel cost/KWh (US Cent)
Thar coal
Australian & S.A coal
Indonesian coal
RFO
HUBCO unit-1,2,3,4
2.52
4.16
4.47
16.55
AES Lalpir
AES Pakgen
SABA Power
2.91
4.80
5.16
19.09

42. Fuel cost comparison per year
GENCOs
Power station
Fuel cost/year (million US$)
Fuel cost difference/year (Thar coal-RFO)
(million US$)
Thar coal
Australian & S.A coal
Indonesian coal
RFO
Jamshoro unit-1
31.323
51.765
55.612
Jamshoro unit-2,3,4,
82.716
Guddu unit-3,4
48.323
79.859
85.794
M.Garh unit-1,2,3
83.249
M.Garh unit-4
37.091
61.298
65.853
M.Garh unit-5,6
58.527
96.724
SPS Faisalabad unit-1,2
20.344
33.622
36.120
NGPS Multan unit-1
23.984
39.636
42.582
Total savings/year

43. Fuel cost comparison per year
IPPs
Power station
Fuel cost/year (million US$)
Fuel cost difference/year (Thar coal-RFO)
(million US$)
Thar coal
Australian & S.A coal
Indonesian coal
RFO
HUBCO unit-1,2,3,4
AES Lalpir
46.092
76.174
81.834
AES Pakgen
SABA Power
19.246
31.807
34.171
Total savings/year

44. Annual Thar coal requirement for existing power plants
GENCOs
Jamshoro units-1,2,3 & 4 = 3.6 million tonnes
Guddu units-3,4 = 1.5 million tonnes
M.Garh units-1,2,3,4,5 & 6 = 5.6 million tonnes
SPS Faisalabad unit-1,2 = 0.7 million tonnes
NGPS Multan unit-1 = 0.8 million tonnes
IPPs
HUBCO unit-1,2,3,4 = 4.6 million tonnes
AES Lalpir = 1.3 million tonnes
AES Pakgen = 1.3 million tonnes
SABA Power = 0.6 million tonnes
Total = 20 million tonnes

45. Strategy for the development of Thar coal
Short term planning
Demarcation of the areas, at Thar coal basin, suitable for open pit and underground mining.
Outside dump for open pit mine should be developed on the area, which is suitable for underground mining.

46. Short term planning
Identification of the areas most suitable for underground operation
Stripping ratio > 10:1 (m:m)
Minimum sand column in the vicinity of working seam
Minimum coal seams
Thickness of working seam in the range of 3m – 10m

47. Short term planning
Develop an underground pilot mine to understand the strata behaviour during longwall operation:
Capacity = 1 million tonnes (this will cater the need of Jamshoro power plant unit-1)
Capital cost pilot mine = US$ 140 million
Development of two inclines from surface to the bottom of coal seam

48. Short term planning Development period of two inclines = 18 months
Development of main roadway and longwall panel
Development period in coal = 18 months
Width of Longwall Panel = 100m
Bulk sample of coal will be available, during the development of main roadway and longwall panel. This bulk sample would be used for combustion tests required for the design of boiler.

49. Short term planning Convert unit-1 of Jamshoro thermal power plant
Develop rail link between coal mine and Mirpur Khas – Khokrapar Section. (Route: Ranjho Noon – Chilhar – Nabisar – Kunri – Pithoro)
Total capital cost of the project = Rs. 17 billion
Carrying capacity = 24 million tonnes/year

50. Short term planning
Conversion of pilot mine to a production mine (After one year of operation)
Development of 3rd incline
Development of 2 longwall panels
Width of each Longwall Panel = 150m – 200m
Extra development period = 18 months
Coal production = 5 million tonnes/year
Extra capital cost required = US$ 160 million

51. Short term planning
Underground mine will cater the needs of Jamshoro and Guddu power plants.
Convert unit-2,3,4 of Jamshoro power plant and unit-3,4 of Guddu power plant.

52. Short term planning
2nd underground mine may be developed to cater the needs of Muzafar Garh, Faisalabad and Multan power plants.
Production capacity = 7 million tonnes/year
Development period = 3 years
Capital cost = US$ 350 million
Convert unit-1,2,3,4,5,6 of M. Garh; unit-1,2 of SPS Faisalabad and unit-1 of NGPS Multan power plants

53. Short term planning Execution of the underground mining project
Thar coal mining company may be formed with public-private partnership.
Share holders may be:
GoP = 35%
GoS = 35%
Private partner = 30%

54. Short term planning
Expedite the open pit mining projects, who have been allotted mining lease:
Global Mining Company of China with production capacity of 10 Mt/year
Sindh Engro Coal Mining Company with production capacity of 6.5 Mt/year
Oracle Coalfields with production capacity of 2.4 Mt/year

55. Thank you very much