Stakeholders Advance Plan For Jamshoro Power Project’s Shift To Thar Coal
Thar, July 29, 2026: A high-level stakeholder meeting was held at the Thar Block-1 mine site to advance discussions on the supply of indigenous Thar coal for the 660 MW Jamshoro Power Project.
The meeting was attended by Chairman of K-Electric Limited (KE) Mr. Shaheryar Arshad Chishty, Managing Director of the Thar Coal Energy Board (TCEB) Mr. Tariq Ali Shah, Chief Executive Officer of Sino Sindh Resources Limited (SSRL) Mr. Li Jigen, Chief Executive Officer of Jamshoro Power Company Limited (JPCL) Mr. Muhammad Abdul Vakil, representatives of the Private Power and Infrastructure Board (PPIB), and other relevant stakeholders.
Discussions focused on coal supply arrangements for the Jamshoro project during its interim blended-coal operations and following its proposed conversion to full utilisation of Thar coal. The initiative was also considered in the context of KE’s wider generation transformation programme, including opportunities to align suitable assets within its own portfolio with indigenous fuel sources.
Independent Study Highlights $3.2 Billion Economic Benefit
Recognising the wider importance of converting the Jamshoro project to Thar coal for Pakistan’s power sector, KE funded and commissioned an independent bankable feasibility study by German engineering consultant Dornier Power and Heat GmbH.
The study established the technical and economic viability of the proposed conversion and estimated that it could generate economic benefits of approximately $3.2 billion over the project’s remaining life, based on the study’s underlying assumptions.
The conversion could also significantly reduce imported coal requirements and conserve valuable foreign exchange.
KE Chairman Mr. Shaheryar Arshad Chishty reaffirmed the company’s commitment to pursuing viable opportunities for lowering the underlying cost of electricity for Karachi’s consumers.
He said greater utilisation of Pakistan’s indigenous energy resources could support affordable electricity, strengthen energy security and reduce pressure on the country’s foreign exchange reserves. He added that the Jamshoro conversion, together with KE’s efforts to optimise its own generation portfolio, forms part of the company’s broader operational and financial transformation.
Block-1 Mine Capacity Set To Double
KE highlighted that the combined off-take requirements of the Jamshoro project and its future generation portfolio would create the long-term demand needed to justify expanding the Block-1 mine from approximately 7.8 million tonnes per annum (MTPA) to around 15.6 MTPA.
In response to this projected demand, SSRL confirmed its readiness to undertake the mine expansion ahead of JPCL’s planned transition from imported coal to indigenous Thar coal by 2029.
The expansion is expected to ensure uninterrupted long-term coal supplies while improving the cost competitiveness of Thar coal.
SSRL Plans Technology-Driven Expansion
CEO of SSRL Mr. Li Jigen expressed confidence that the company could complete the proposed expansion using its own financial resources.
He noted that the project would benefit from comparatively limited incremental overburden removal requirements and would incorporate modern mining technologies, including electric mining vehicles, greater use of grid-supplied electricity instead of diesel-powered equipment where feasible, and advanced Bucket Chain Excavator (BCE) systems.
These measures are expected to improve mining efficiency, reduce operating costs, minimise the project’s environmental footprint and further lower the long-term cost of Thar coal.
SSRL, JPCL and KE also agreed to conclude the required Coal Supply Agreement (CSA) at the earliest to enable timely procurement of critical mining equipment, particularly electric dump trucks and other long-lead mining assets.
Stakeholders Back National Energy Transition
Managing Director of TCEB Mr. Tariq Ali Shah reaffirmed the Board’s commitment to facilitating the proposed mine expansion and undertaking the necessary regulatory actions within its mandate to improve mining efficiencies and reduce coal tariffs for electricity consumers.
JPCL and PPIB also expressed support for moving the initiative forward, while stakeholders agreed on coordinated follow-up actions covering the required technical, commercial, regulatory and supply arrangements.
KE Reaffirms Commitment To Affordable And Sustainable Energy
KE said its funding of the feasibility study and continued engagement with stakeholders reflect its commitment to supporting initiatives of national importance.
The company stated that lowering generation costs and reducing dependence on imported fuels could help provide consumer relief, conserve foreign exchange and create a pathway towards gradually reducing the power sector’s reliance on Government of Pakistan-funded tariff support.