NUSA DUA, Indonesia, Sept 29 (Reuters) – Pakistan’s largest coal miner Sindh Engro Coal Mining Co (SECMC) expects to increase its output by 51.3% in 2024, its chief executive told Reuters, while the South Asian economy seeks to reduce imports. reduce fuel costs and shore up your finances.
Faced with a devastating currency crisis, Pakistan’s government is trying to preserve its depleted foreign exchange reserves and protect itself against geopolitical shocks.
SECMC aims to help by increasing coal production to 11.5 million tonnes in 2024, from 7.6 million tonnes expected this year, its chief executive Amir Iqbal told Reuters on Friday.
The company will seek to push power plants that currently run entirely on imported coal to use 20% to 25% locally mined coal, Iqbal said.
“We have done some initial work (on imported coal-based power plants). It is very possible,” he said.
SECMC has funds to finance mining expansion by 2024, but faces challenges in increasing production after that as Chinese lenders have stopped financing coal projects, Iqbal said.
“That is a challenge for which we are seeking support from the government of Pakistan. They need to find some financial instrument so that we can continue to expand,” he said.
The country of more than 230 million people relies primarily on natural gas to produce electricity, but has been looking to increase coal production to save costs.
“The other very big area is the cement industry, which is 100% based on imported coal. If we start penetrating that area, we can start replacing imported coal,” Iqbal said.
Reporting by Sudarshan Varadhan; edited by Barbara Lewis
Our standards: The Thomson Reuters Trust Principles.
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