CEO says company working on ‘extraordinary’ paperwork.
LAHORE: After a delay in the financial closure of Sindh Engro Coal Mining Company’s (SECMC) $2-billion project in Thar-Coal field block-II, Sino-Sindh Resources Private Limited (SSRPL), a mining company working on block-I of Thar, is also failing to meet the deadlines.
SSRPL’s financial closure was expected in the second quarter this year, whereas the financial closure of SECMC was expected in April this year.
“We are experiencing hectic and extraordinary paperwork for this project, however, we are up to it and are expecting the financial closure soon,” SSRPL CEO Chaudhary Abdul Qayyum told The Express Tribune. “Once financial closure is complete, we will start mobilising heavy machinery at the site which will cover the delay in no time,” he claimed.
SSRPL, a subsidiary of Global Mining (China) with 55% stake, has managed to secure a 10-year loan of $1 billion from Industrial and Commercial Bank of China to extract 6.5 million tons of coal annually initially from block-I of Thar coal field.
The total coal mining investment for block-I is $1.3 billion. The remaining amount is to be raised by Chinese banks as well.
The project is scheduled to start commercial coal production in the first quarter of 2018. Apart from coal mining, four coal-fired power plants of 350MW each will also be established. These will cost another $2 billion. Qayyum said that financing of the entire project would be completed as per the schedule as the government and major Chinese companies are involved in this project.
Experts have said that the government of Pakistan has developed a “Green Channel” for fast track developments under the China Pakistan Economic Corridor.
Published in The Express Tribune, October 21st, 2015.
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