Dated: 30.7.2008

HANDOUT

CHIEF MINISTER SINDH ADDRESS INTERNATIONAL CONFERENCE ON COAL AT WASHINGTON.

Karachi, July 30: A round table Conference was held in the office of World Bank at Washington on 29th & 30th July, 2008. The Conference was sponsored by World Bank and International Fund for coal.
The Conference was presided by Chief Minister Sindh Syed Qaim Ali Shah and Federal Minister for Water & Power Raja Muhammad Ashraf for both days. Chief Minister Sindh Syed Qaim Ali Shah gave an impressive opening speech. On the first day of Conference Foreign Minister and Federal Minister for Petroleum and National Resources Shah Mehmood Quershi also addressed the Conference.
Prime Minister of Pakistan Syed Yousuf Raza Gillani gave his speech on second day of Conference on 29th July, 2008.
Chief Minister Sindh Syed Qaim Ali Shah in his speech said that Sindh being southern province of Pakistan is famous for land of Sufis and Walis, and known for its peace loving people. He said that Sindh province presents, one of the most attractive destinations for investors.
Chief Minister Sindh maintained that there are vast coal resources in the desert of Thar, which were discovered in late 1980’s when some hydrologists of Sindh in search of water for desert dwellers, found coal during drilling operations. Chief Minister Sindh added that with joint exploration exercise of United States Geological survey and Geological survey of Pakistan, the Thar Coal Lignite reserves were estimated to be around 175-billion tons spread over an area of 9000 sq. kms. He informed that total coal resources in Sindh are estimated to be over 185 billion tons, considered sixth largest reserves in the world.
Syed Qaim Ali Shah further informed that over 90% of Pakistan’s coal reserves are in Sindh, as the Pakistan; located in the middle of one of the fastest growth regions in the world, surrounded by India, China and Middle East, has been growing at the rate of 7% since last five years.
Chief Minister Sindh added that a major impediment to Pakistan’s growth potential is acute power shortages.
He said that at present, Pakistan is largely dependent on imported furnace oil for bulk of its power generation that consumes large amount of foreign exchange resources and causes severe trade and current account imbalances as such the exploitation of Coal resources in Thar for power generation is absolutely vital for Pakistan for meeting its growing energy needs. He said that there is no other choice for Pakistan but to develop Coal Resources for its future power generation needs.
Syed Qaim Ali Shah further said that it was during the previous government of Pakistan Peoples Party headed by Shaheed Benazir Bhutto in 1993, when That Coal Reserves came to lime light and the PPP initiated the program of development of these resources on fast track basis but unfortunately, after the PPP government, power generation and exploitation of coal resources was not given adequate attention. Chief Minister Sindh said in the last general election, Shaheed Mohtarma Benazir Bhutto had included Energy, especially power generation through Sindh’s Coal Resources, as one of the cornerstones of Party manifesto.
He added that Shaheed Benazir Bhutto, who gave her life struggling for the rights of the people of Pakistan in Last December, decided to provide the institutional structure to facilitate exploration, development of Infrastructure in Thar Coal Field, mineral licensing and regulation as such the infrastructure succeeded in development of this part of Thar Desert from an inaccessible and inhospitable area into a workable atmosphere for mining operations. Chief Minister Sindh added that to facilitate investors, road networking connecting all major cities has been completed upto Coal Field; and electricity is available there while Optical Fibre Line is available upto Coal Field / project site. Besides, Water Supply is also available at Coal Field and surrounding areas, he said.
Chief Minister Sindh said that an Air Strip is being constructed while to make Thar Coal Field accessible for development and transportation, schemes for construction of railway line has been approved.
Syed Qaim Ali Shah further said that the department of Mines and Mineral, Government of Sindh through Sindh Coal Authority, have intensively explored an area of 455 sq kms. while further explorations are being undertaken to increase availability of blocks with complete data for potential investors. He said that the present provincial government recently advertised an offer for Public-Private Joint Venture in Thar Coal Mining for which the response from both local and foreign investors has been enthusiastic and there are several investment proposals under consideration of the Government of Sindh in Thar Coal mining. “We have now formed that Thar Coal and Power Board. This will ensure that the investors will not have to run for paper work from one Department or Ministry to others, and will provide one window facilitation. This Board is headed by myself, and includes as members, relevant federal and provincial ministers and secretaries so as to address all matters in an expeditious manner. Its role includes the following, with focus on saving investors from run-around: Attract investment for coal mining & gasification in Thar. One-stop organization related to development, leasing and sub-leasing at Thar, mining, development of clean coal technologies, R&D activities, he maintained.
Syed Qaim Ali Shah further said that decision-making body for developing & implementing policy, guidelines, road-maps, and initiatives for coal development & mining. Repository for all databases, studies, etc. collaboration with Private Power & Infrastructure Board (PPIB) for processing of Integrated Coal Mining/Coal Gasification power generation projects after approval by the Board i.e, issuance for Letter of Interest (LOI), negotiation / execution of agreements for power generation, etc. have been initiated.
Syed Qaim Ali Shah further added that it imperative upon the Government of Sindh to open up its coal resources for the country’s needs as Coal has to be exploited at a very large scale for meeting the country’s energy demands which includes demand for electricity as well as for fuel through coal-to-liquid technology and by gasification to conserve the country’s fast depleting reserves of natural gas.
Chief Minister Sindh said that the desert dwellers of Thar are the most peace loving people and the area has almost zero crime rate. It has several other viable mining investments such as in Thar’s Granite reserves spread over an area of 2000 sq. kms. he said. He further said that the development of the Thar resources would provide a certain degree of long-term energy security to Pakistan and the electricity generation potential of 100,000 MW based on estimated consumption of 536 million tones of coal per year, is the most important fuel

Resources used for provision of coal base load capacity in the system supplementing gas based capacity. Further, use of Thar reserves for power generation would help in reducing excessive reliance on imported fuel thereby reducing the pressure balance of payments of the country and further more, since this resource is located close to Indian Border, there is a great potential for export of power to India to meets its rapidly growing power needs, he added.
Chief Minister Sindh on behalf of the Government of Sindh and Department of Mines and Minerals and the People of Sindh, welcomed all those interested in having a look at the Sindh’s Coal Resources, especially the desert of Thar and its Coal reserves for establishing power generation plants or for other purposes. He also as Chief Executive of the province assured his full support and assistance to prospective investors in Coal Resources of Sindh and said that full access to all the data and information will be made available with the Department of Mines and Sindh Coal Authority.
Conference was attended by AES Corp, International Power (UK), Engro, Zolro Energy, Akkadian private Ventures, Apex Energy, Agha Khan Fund for Economic Development, Lucky Cement, Oracle coal fields (UK), Zain Consulting, Sk Hydro, Cathay Oil and Gas, Petromaxx, Fatima Group, Barrick Gold Corp, Global Steel Holding, Hassan Associates, Gas Turbines, Habibullah Energy, Moseley Horizon, Tata Power co, Hong Puong energy, Cavaliar Energy and and Defence group, Global Eddison, APR Energy, Zima Inc, Granada services, Madhu Vuppurl, Weddel and Reed Investment, Johangir Suddiqui Group, Islamic Dev Bank, Nordic investment Bank, Japan Bank of Intl, Export Import Bank of USA, US Trade and Dev Agency and US Dept of Energy. There was large interest and response shown by many firms and assured their participation in the project.

HANDOUT NO… (ABM).