Pakistan’s Power Division has launched a series of reforms in Thar coal mining operations aimed at reducing costs and improving efficiency, with projected annual savings of $25 million to $30 million.

Gwadar Pro reported quoting the Ministry of Energy-Power Division. The Thar coal project is a key component of the China-Pakistan Economic Corridor (CPEC), aimed at strengthening Pakistan’s energy security and reducing reliance on imported fuels.

The initiatives were introduced under the direction of Prime Minister Shehbaz Sharif and the leadership of Federal Minister for Power Sardar Awais Ahmed Khan Leghari to address operational challenges in Thar coal mining and reduce reliance on imported fuels.

According to a statement issued by the ministry, the reforms are expected to significantly cut diesel consumption, lower electricity generation costs and ease pressure on foreign exchange reserves.

Daily diesel savings are projected at around Rs25 million, contributing to annual foreign exchange savings of $25 million to $30 million.

The cost of coal production is also expected to decrease by approximately $0.7 per ton, making electricity generated from Thar coal more affordable.

Officials said diesel-based power generation costs for mining operations, currently around 33 cents per kilowatt-hour, are expected to drop to 13 cents per unit, marking a reduction of over 60%.

The statement noted that one of the key operational challenges, dewatering during mining, previously required about 35,000 liters of diesel daily, while total diesel consumption ranged between 200,000 and 250,000 liters per day.

Under the new plan, mining operations will transition from diesel-based systems to grid-connected infrastructure through an investment of Rs 5.3 billion.

The project includes 132kV grid connectivity from the Islamkot Grid Station to supply around 60 megawatts of electricity to mining sites.

The reforms are also expected to deliver environmental benefits, including an estimated annual reduction of 80,000 tons of carbon emissions.

Diesel-powered mining vehicles will gradually be converted to electric systems to improve efficiency and support long-term decarbonization goals.

The Power Division said the reforms reflect a broader strategy to reduce operational costs, enhance energy efficiency and mitigate the impact of global energy challenges on Pakistan’s power sector.

Credit: Independent News Pakistan (INP) — Pak-China