Key Takeaways
- Sindh Engro Coal Mining Company (SECMC) plans a 47% increase in coal production from Thar.
- Production will rise from 7.6 million tonnes per annum to 11.2 million tonnes per annum by September 2026.
- The move aims to reduce reliance on imported coal and save foreign exchange reserves.
Sindh Engro Coal Mining Company (SECMC) is set to significantly boost its coal production from the Thar block, a major step towards reducing Pakistan’s dependence on imported coal.
Amir Iqbal, CEO of SECMC, announced that the company will increase its current output of 7.6 million tonnes per annum to 11.2 million tonnes per annum by September 2026 during a conference titled ‘Mining Technical Conference 2026’ scheduled for August 6, 2026.
The increased production is expected to fulfill Lucky Electric Power Company Limited’s (LEPCL) requirement of 3.6 million tonnes per annum from the next month, allowing it to completely shift from imported coal to local lignite.
Iqbal highlighted that this transition will save Pakistan’s foreign exchange reserves by reducing expenditure on importing lignite from Indonesia, currently costing $1.7 billion since 2019.
The cost of Thar coal is projected to be 8-10% cheaper for power companies compared to imported coal, making it a more economical choice.
Future phases of expansion are targeted to increase production to 20 million tonnes per annum by 2030, further cutting costs and potentially enabling exports.
To facilitate this increased output, the Thar–Chhor railway line for coal transportation is expected to be completed early next year, ensuring efficient delivery to power plants in Karachi.
The CEO emphasized that the increased production from Thar block-II will not only reduce energy import costs but also contribute to the country’s economic growth by making local coal more competitive.
‘The SECMC is producing 7.6 million tonnes per annum at present, which will increase to 11.2 million tonnes per annum from September 2026,’
Amir Iqbal, CEO, Sindh Engro Coal Mining Company
‘The production of coal from Thar block-II by SECMC has saved $1.7 billion by cutting energy import since 2019.’
Amir Iqbal, CEO, Sindh Engro Coal Mining Company
