KARACHI: Sindh Engro Coal Mining Company (SECMC) is set to increase coal production from its Thar Block-II mine by 47 per cent to 11.2 million tonnes per annum from September 2026, following cumulative investment of $1.4 billion in the project since 2019.
Speaking at a media briefing ahead of the company’s first Mining Technical Conference 2026, scheduled for later this week, SECMC Chief Executive Officer Amir Iqbal said the company is currently producing 7.6 million tonnes of coal annually and plans further expansion in the coming years.
He said additional investment will be made in the next phases of the project to further enhance coal production capacity.According to Iqbal, the higher output will enable SECMC to fully meet the annual coal requirement of 3.6 million tonnes for Lucky Electric Power Company Limited (LEPCL) in Karachi from September 2026. As a result, the power plant will switch entirely from imported Indonesian coal to locally produced Thar coal.
The transition is expected to reduce Pakistan’s import bill and save foreign exchange by replacing imported fuel with domestic coal.Iqbal said Thar coal remains 8-10 per cent cheaper than imported coal, even after including transportation costs from the mine to power plants in Karachi. The lower fuel cost is expected to reduce electricity generation costs at the Lucky power plant and improve its position in the government’s merit order, making it more competitive within the national power system.
He said coal production from Thar Block-II has already helped Pakistan save around $1.7 billion in energy imports since commercial operations began.SECMC plans to further expand production to 20 million tonnes per annum under Phase IV of the project, which is targeted for completion by 2030.
Iqbal said higher production volumes would further reduce mining costs and strengthen the economic case for wider domestic use of Thar coal. In the longer term, the expanded output could also create opportunities for coal exports, although the immediate priority remains meeting domestic energy demand.
He added that work on the Thar–Chhor railway line is progressing and the project is expected to be completed in the early part of next year. Once operational, the railway will provide a more efficient and cost-effective means of transporting coal from Thar to power plants across the country.
Highlighting the upcoming Mining Technical Conference 2026, Iqbal said the event aims to promote the modernisation of Pakistan’s mining industry in line with international standards. The conference is also intended to encourage investment in the sector by bringing together industry experts, policymakers and other stakeholders to discuss technological advancements, sustainability and future growth opportunities.
