KARACHI, July 19: Sindh Engro Coal Mining Company (SECMC) and Meezan Bank have signed an Islamic Facility Agreement to finance Phase III expansion of the Thar Block II coal mine, aiming to increase coal production from 7.6 million tonnes per annum (MTPA) to 11.2 MTPA.
The financing arrangement is led by Meezan Bank and includes a syndicate of United Bank Limited, Askari Bank Limited, Sindh Bank Limited, and Pakistan-China Investment Company Limited.
SECMC, a public-private partnership backed by the Sindh government, began commercial operations in 2019 and scaled production to 7.6 MTPA by 2022. This expansion supported 1,320 MW of power generation from Thar Block II. Phase III will further enhance Pakistan’s energy security by converting the 660 MW Lucky Electric Power Company Limited (LEPCL) plant to Thar coal.
SECMC CEO Amir Iqbal praised the continued support of the Sindh government and financing partners, noting that the agreement marks a major milestone in the company’s mission to deliver low-cost, domestically powered electricity. “This move strengthens our vision for sustainable, world-class mining that powers Pakistan’s future,” he said.
To date, SECMC has powered over three million households and saved nearly \$1.6 billion in foreign exchange. Thar coal power plants remain among the most cost-effective on the National Transmission and Despatch Company’s (NTDC) Economic Merit Order.
