Chemical products from coal: Chinese firm again approached for initiating project

A Chinese group, which earlier showed interest in producing a range of chemical products from the Thar coal deposits, has again been approached by Sindh government to initiate the project, Business Recorder learnt here on Tuesday.

Sources in Sindh Mines and Mineral Development Department said that China National Chemical Engineering Company (CNCEC) was ensured that it would be facilitated in all possible manners by the government. According to the sources, Chinese company could invest up to 500 million dollars on the project.

It may be pointed out that the firm was contacted by the department about two months back, but the company has not yet responded to the government's offer. The sources said that the company had carried out a comprehensive research survey of the Thar coalfield and its report claimed that the Thar coal deposits were not suitable for power generation.

As such the Chinese company did not show its interest in the coal-based power projects, they said. They said the CNCEC offered that since the project of construction of two 350 megawatt was abandoned by Shenhua Group Corporation of China, it could, therefore, start work on producing chemical products from the Thar coal deposits.

The project would be first of its kind as the Mines and Mineral Development Department was interested only in coal-based power projects. The sources said that a high level delegation of the company met senior officials of the Ministry of Petroleum in November 2005 to finalise the project of producing coal-related chemical products. However, the projects remained in doldrums because of the lack of interest by the Mines and Mineral department.

Sources said that the company had a plan to make investment of about 400 to 500 million dollars in initial phases on the project to enhance coal production in Thar for its subsequent conversion to petrochemical products. They said that Sindh Mines and Mineral Development Minister Irfanullah Khan Marwat wanted the CNCEC to start work on producing petrochemical products to earn foreign exchange for the country.

On his directives, a senior official of the ministry has contacted the Chinese Consulate officials in Karachi to provide the ministry with the contact number of any focal person of the CNCEC group to initiate the work on the project.

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