Islamic Republic of Pakistan Data Collection Survey on Thar Coal Field In Pakistan FINAL REPORT FEBRUARY 2013 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) Nippon Koei Co., Ltd. Coal Resources & Mining Engineering Co., Ltd. 4R JR 13-014 FINAL REPORT for The Data Collection Survey on Thar Coal Field in Pakistan CONTENTS Executive Summary Location Map Chapter 1 Introduction 1.1 Background of the Survey ......................................................................................................... 1 - 1 1.1.1 Present Situation of Power Supply and Demand ................................................................. 1 - 1 1.1.2 Political Measures on Energy Sector and Development Plan .............................................. 1 - 2 1.1.3 Latest Government Decision ................................................................................................ 1 - 3 1.2 Objective of Survey .................................................................................................................... 1 - 3 1.2.1 Objective of the Survey ........................................................................................................ 1 - 3 1.2.2 Survey Area ........................................................................................................................ 1 - 3 1.3 Scope of the Survey .................................................................................................................. 1 - 3 1.4 Survey Schedule ....................................................................................................................... 1 - 4 Chapter 2 Basic Data and Information 2.1 Coalfield Developments in Pakistan .......................................................................................... 2 - 1 2.1.1 Coal Role in Pakistan National Energy Policy .................................................................... 2 - 1 2.1.2 Coal-related Organization .................................................................................................... 2 - 2 2.1.3 Coalfields in Pakistan ........................................................................................................... 2 - 4 2.1.4 Coal Resources, Production, and Quality ............................................................................. 2 - 10 2.1.5 Laws or Regulations Related to Coal Development ............................................................. 2 - 14 2.2 Thar Coalfield ............................................................................................................................ 2 - 16 2.2.1 Exploration History ............................................................................................................... 2 - 16 2.2.2 Geological Setting ................................................................................................................ 2 - 16 2.2.3 Meteorology and Hydrology ................................................................................................. 2 - 23 2.2.4 Coal Recourses and Reserves ............................................................................................. 2 - 26 2.2.5 Quality .................................................................................................................................. 2 - 26 2.3 Other Coalfields in Sindh ........................................................................................................... 2 - 27 2.3.1 Lakhra Coalfield ................................................................................................................... 2 - 27 2.3.2 Sonda – Jherruk Coalfield .................................................................................................... 2 - 31 2.3.3 Badin Coalfield ..................................................................................................................... 2 - 32 2.3.4 Lakhra Thermal Power Plant ................................................................................................ 2 - 33 2.4 Power Development Plan .......................................................................................................... 2 - 38 2.4.1 Basic Policy for Power Development Plan ........................................................................... 2 - 38 2.4.2 Long-Term Power Demand Forecast .................................................................................... 2 - 38 2.4.3 Generation Planning ............................................................................................................. 2 - 39 2.4.4 Power Grid Expansion Plan ................................................................................................. 2 - 41 2.4.5 Policy and Plan for Developing and Conducting the Coal Thermal Generation Plant .......... 2 - 48 2.4.6 Other Relevant Plans and Information ................................................................................. 2 - 49 2.5 Power Generation Applications and Tariff .................................................................................. 2 - 50 i 2.5.1 General Procedure of Application ......................................................................................... 2 - 50 2.5.2 Tariff Structure ...................................................................................................................... 2 - 51 2.5.3 Incentives on the Tariff ......................................................................................................... 2 - 52 2.5.4 Referential Tariff Generated by Coal Thermal ...................................................................... 2 - 53 Chapter 3 Thar Coalfield Development 3.1 Current Status of Each Block ................................................................................................... 3 - 1 3.1.1 Block I ................................................................................................................................. 3 - 3 3.1.2 Block II ................................................................................................................................ 3 - 5 3.1.3 Block III ............................................................................................................................... 3 - 11 3.1.4 Block IV .............................................................................................................................. 3 - 11 3.1.5 Block V ............................................................................................................................... 3 - 12 3.1.6 Block VI .............................................................................................................................. 3 - 14 3.2 Geological Assessments ............................................................................................................ 3 - 17 3.2.1 Main Issues and Countermeasures in the Thar Coal Development .................................... 3 - 17 3.2.2 Estimation of ROM ............................................................................................................. 3 - 18 3.2.3 Controlling Spontaneous Combustion ................................................................................ 3 - 19 3.3 Mining Technology for Surface Mining ....................................................................................... 3 - 20 3.3.1 Mining Equipment and System ........................................................................................... 3 - 20 3.3.2 Cost performance ............................................................................................................... 3 - 26 3.3.3 Japanese Coal Mining Technologies .................................................................................. 3 - 28 3.4 Hydrogeology ............................................................................................................................ 3 - 35 3.4.1 Groundwater Situation .......................................................................................................... 3 - 35 3.4.2 Dewatering ........................................................................................................................... 3 - 37 3.5 Development Information for Other Similar Coalfields .............................................................. 3 - 40 3.5.1 Comparison with Other Coalfield of South Asia .................................................................... 3 - 40 Chapter 4 Power Generation 4.1 Feasibility of Generation by Utilizing Thar Coal ......................................................................... 4 - 1 4.1.1 Development Plan for the Power Plants ............................................................................... 4 - 1 4.1.2 Constrained Condition in the Thar Coalfield ......................................................................... 4 - 2 4.1.3 Applicable Power Generation Plant in the Thar Coalfield ..................................................... 4 - 2 4.2 Feasibility of Generation by Utilizing Gas Produced from Underground Gasification ............... 4 - 11 4.2.1 General Information .............................................................................................................. 4 - 11 4.2.2 UCG in the Thar Coalfield .................................................................................................... 4 - 11 4.3 Coal Thermal Generation Technology in Japan utilizing the Lignite Coal .................................. 4 - 13 4.3.1 Gasification Technology ......................................................................................................