The Power Division has announced a major reform in Thar coal mining operations, aimed at reducing costs and boosting efficiency. Officials say the initiative will replace diesel-powered mining with electricity supplied from the national grid. This shift is expected to save $25 million to $30 million in foreign exchange annually.
Previously, coal mining operations in Thar relied heavily on diesel. Daily consumption ranged from 200,000 to 250,000 liters, with 35,000 liters used solely for dewatering activities. These costs increased electricity production expenses and were passed on to consumers through higher tariffs.
Under the new plan, the cost of coal used in mining is expected to drop by nearly $0.7 per ton. Meanwhile, the cost of electricity for mining operations will fall from 33 US cents per kWh to just 13 US cents per kWh. This represents a reduction of more than 60 percent, significantly lowering operational expenses for coal mining.
To support the transition, the government is investing approximately Rs. 5.3 billion in grid stations and transmission infrastructure. This includes connecting operations to HESCO’s 132 kV Islamkot grid station and providing nearly 60 MW of electricity for mining activities. The investment is expected to ensure a smooth shift from diesel to grid-supplied power.
Officials note that the reform will also have environmental benefits. Carbon emissions from mining operations are expected to drop by around 80,000 tons annually. In the future, plans include replacing diesel-powered mining vehicles with electric vehicles. This move will further reduce costs and improve sustainability.
Experts say that the coal mining reforms in Thar represent a significant step toward modernizing energy production. By reducing reliance on imported fuel and lowering electricity generation costs, the initiative could strengthen energy security. Consumers are expected to benefit from lower electricity tariffs, while the environment will gain from reduced emissions.
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Overall, the reform highlights the government’s commitment to making coal mining more efficient, cost-effective, and environmentally friendly. It marks a new chapter for the Thar coal mining sector.
