Name of the Project
Thar Block VI combined lignite coal mine and mine mouth power plant.

Location
Thar desert, in the south-east of the Sindh province of Pakistan.

Client
Oracle Coalfields, a subsidiary of Oracle Power, PowerChina International Group and Sichuan Provincial Investment Group.

Project Description
The project has total mineral resources of 529-million tonnes of coal.

The project proposes the development of a four-million-tonne-a-year openpit mine and circulating fluidised-bed power plant, for which a 2 × 300 MW configuration has been proposed, in Block VI.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project is estimated at $1.6-billion.

Duration
Coal production and delivery of electricity are expected to start in 2019.

Latest Developments
Sichuan Provincial Investment Group and PowerChina have formally approved to proceed with the project, subject to obtaining all necessary approvals and licences required by the Chinese and Pakistan governments and satisfactory due diligence. 

This follows the signing of the memorandum of understanding in November 2017.

The joint venture partners have entered into a two-stage approach to develop the project and this approval by the Sichuan Provincial Investment Group is a key step forward as part of the first stage. 

On completion of the first stage, the next step will be to seek approval from the Chinese government, after which a final development decision will be made to take the project through to financial close. 

Given that the project has priority status in the China Pakistan Economic Corridor, the Oracle board expects the approval by the Chinese government to be quick.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Oracle Power, tel +44 203580 4314 or email info@oraclepower.co.uk.