KEL, SSRL Push Thar Coal Expansion for 660MW Jamshoro Project

July 29, 2026 (MLN): K-Electric Limited (PSX: KEL), the Thar Coal Energy Board (TCEB), Sino Sindh Resources Limited (SSRL) and Jamshoro Power Company Limited (JPCL) have agreed to advance arrangements for supplying indigenous Thar coal to the 660 MW Jamshoro Power Project, with discussions also covering the expansion of the Thar Block-1 mine.

A high-level stakeholder meeting was held at the Thar Block-1 mine site, attended by KEL Chairman Shaheryar Arshad Chishty, TCEB Managing Director Tariq Ali Shah, SSRL CEO Li Jigen, JPCL CEO Muhammad Abdul Vakil, representatives of the Private Power and Infrastructure Board (PPIB) and other stakeholders.

The discussions focused on coal supply arrangements for Jamshoro during its interim blended-coal operations and after its planned conversion to full utilization of indigenous Thar coal. The stakeholders also explored opportunities to align KEL’s future generation portfolio with locally available fuel sources.

KEL has funded and commissioned an independent bankable feasibility study by German engineering consultant Dornier Power and Heat GmbH for the conversion of the Jamshoro project to Thar coal.

The study found the conversion technically and economically viable and estimated potential economic benefits of around $3.2 billion over the project's remaining life, based on its underlying assumptions.

The conversion is also expected to reduce the power sector’s dependence on imported coal and help conserve foreign exchange.

KEL Chairman Shaheryar Arshad Chishty said the company remained committed to pursuing viable opportunities to reduce the underlying cost of electricity for Karachi’s consumers.

“Greater utilisation of Pakistan’s indigenous energy resources can support affordable electricity, strengthen energy security and reduce pressure on the country’s foreign-exchange reserves,” he said.

According to KEL, combined coal demand from the Jamshoro project and its future generation portfolio could provide the long-term demand required to support expansion of the Block-1 mine from around 7.8 million tonnes per annum (MTPA) to approximately 15.6 MTPA.

SSRL confirmed its readiness to undertake the proposed mine expansion ahead of JPCL’s planned conversion from imported coal to indigenous Thar coal by 2029. The expansion is expected to support uninterrupted long-term coal supplies while improving the cost competitiveness of Thar coal.

SSRL CEO Li Jigen expressed confidence that the company could finance the expansion through its own resources.

He said the project would require relatively limited additional overburden removal and would use modern mining technologies, including electric mining vehicles, greater reliance on grid electricity instead of diesel-powered equipment where feasible, and modern Bucket Chain Excavator systems.

These measures are expected to improve mining efficiency, lower operating costs and reduce the environmental footprint of the expansion, while economies of scale could further reduce the long-term cost of Thar coal.

SSRL, JPCL and KEL also agreed to finalise the required Coal Supply Agreement at the earliest, allowing SSRL to begin procuring critical mining equipment, particularly electric dump trucks and other long-lead assets needed for the expansion.

TCEB Managing Director Tariq Ali Shah reaffirmed the Board’s readiness to facilitate the mine expansion and complete the necessary regulatory actions within its mandate. The objective is to improve mining efficiencies and reduce coal tariffs for the eventual benefit of electricity consumers.

JPCL and PPIB also expressed support for the initiative, with stakeholders agreeing to coordinate on the required technical, commercial, regulatory and coal-supply arrangements.

KEL said its financing of the feasibility study and continued engagement with stakeholders demonstrate its commitment to projects of wider national importance.

The company noted that lower generation costs and reduced dependence on imported fuels could help provide consumer relief, conserve foreign exchange and gradually reduce the power sector’s reliance on government-funded tariff support.

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