20000311

GSP project ready

for Lakhra coalfield

lease seekers

RECORDER REPORT

QUETTA: The Geological Survey of Pakistan (GSP) has prepared a project to provide proper guidance and geological data to foreign and Pakistani lease seekers for coal mining at Lakhra coalfield in Dadu district in Sindh.

Sources here said on Friday that the estimated coal reserves in this field amount to about 1328 million tonnes. Of this, 244 million tonne are 'measured', 629 million tonnes 'indicated' and 455 million tonnes 'inferred'.

At present Lakhra coalfield is producing a little over two million tonnes coal per annum, excluding the production of PMDC and LCDC. Of this, 10 percent (0.2 million tonnes) is of sub-bituminous-C coal with heating value of about 9000 BTU/lb, 65 percent coal (1.3 million tonnes) is of quality -2, with average heating value of 7000 BTU/lb. The remaining 25 percent production (0.5 million tonnes) is of quality -3 coal with heating value of about 6000 BTU/lb.

Lakhra coal has potential for producing energy, so essential for Pakistan's progress in the energy sector.

According to these sources, a comprehensive reports on use of coal and environmental issues, prepared by a federal committee, led by a mechanical and mining engineer from California University, and Saifullah Khan Paracha is already before the federal government for consideration.

Saifullah Paracha report prepares that the cost of coal, should be kept low so that government achieves its objectives to produce electricity at cheaper rates, providing tariff relief for the consumers.

Saifullah report also suggests that there should be no sales tax on indigenous coal used for power generation to keep cost of generation per kwh low. Moreover, there should be no increase in the existing taxes on coal, such as royalty, mineral extraction, road access, excise duty, octroi and parking fees for at least five years, to attract foreign and Pakistani investors for mechanised coalmining, and maximum coal production.

The GSP project for lease seekers for coalmining in Lakhra coalfield would be completed in two phases.

The first phase involves reconnaissance, exploration in about 300 sq km area lying to the north of Lakhra coalfield. A specific block of 50 sq km will be chosen on the basis of information gathered through reconnaissance phase for semi-detailed exploration.

This would be followed by second phase which would involve reconnaissance exploration in another 300 sq km area of the coalfield for identification and delineation of other specific blocks for maximum possible foreign and Pakistani investment in coalmining indsutry.