Thar coal mining expansion project: SECMC signs Islamic Facility Agreement with Meezan Bank

KARACHI: Sindh Engro Coal Mining Company (SECMC) and Meezan Bank Limited signed an Islamic Facility Agreement to fund the Phase III mine expansion project of the Thar Block II.

Under this arrangement, syndicate comprising of United Bank Limited, Askari Bank Limited, Sindh Bank Limited and Pak China Investment Company Limited led by Meezan Bank Limited will provide Islamic financing to scale up the coal production from the current 7.6 million tons per annum (MTPA) to 11.2 MTPA.

Under the continued leadership of the Government of Sindh, SECMC’s historic journey began in 2019 when it became the country’s first public-private partnership to demonstrate the commercial viability of Thar coal for power generation.

In 2022, SECMC expanded its operations to 7.6 MTPA taking total a power generation from Thar Block II to 1320 MW, and now, with Phase III underway, it aims to further strengthen Pakistan’s energy security by converting 660 MW Lucky Electric Power Company Limited (LEPCL) power plant to Thar Coal.

Speaking on the occasion, Amir Iqbal, CEO of SECMC, acknowledged the support of the Government of Sindh, Meezan Bank, and all stakeholders involved. He said, “The Thar Block II development started as a bold idea and proved that indigenous coal could energize Pakistan. This financing and continued relationship with Meezan and other members of the syndicate takes us closer to our Phase III goal and brings us a step further in delivering low-cost electricity through domestic resources.”

He added, “It also marks as a significant milestone in SECMC’s vision to energize Pakistan’s future through world-class, sustainable mining.”

Currently the SECMC is energizing over 3 million households and have contributed to foreign exchange savings of approximately USD 1.6 billion since inception. Thar Coal Power plants’ consistent ranking are among the top positions on the Economic merit order issued by National Transmission & Despatch Company (NTDC) makes Thar coal as the most cost-effective baseload fuel in the country.