Investors seek guarantee for coal projects

KARACHI - The experts and investors have suggested that the government should made a short and long term strategies to develop the natural resources of Sindh, especially coal and granite. The investors also expressed their willingness for investment in coal based power projects but they sought specific guarantees from the federal and provincial governments. They expressed these views at a seminar on "Investment Potential of Mineral Resources of Sindh" organised by Mines and Mineral Department of Sindh on Thursday. Beside the representatives of World Bank, a large number of foreign and domestic investors and geological experts participated in seminar. Michael Stanley of Oil, Gas and Mining Policy Division of World Bank while delivering his presentation said that WB has initiated a project under which technical assistance would be given to Sindh government to develop the coal and other mineral resources. The WB is involved in agreement through federal government. The World Bank representative shared the exposure of bank in mineral sector development in various countries and said usually the agreements benefited companies rather than governments in mineral resources development. He informed that a capital investment of $1 million to $250 million dollars is required to take part in coal projects bidding. He also suggested that government should encourage local investors for making investment in mineral especially coal fields. Meanwhile, various local and overseas Pakistani investors during question answer session commented that at least $200b to $500b investment was required to develop and use the whole mineral resources of Sindh. The overseas Pakistanis were ready to invest in coal power projects as $15 billion to $16 billion dollars were not a problem for them, they said, adding that what guarantees would be available to protect this investment. Expressing their worried over prevailing law and order situation, they pointed out that they were facing law and order situation at Sondha coal field Dadu so, how their investment will be safe. The overseas Pakistani investors offered investment in coal power projects in Sindh. Younas Dagha Provincial Secretary of Mines and Mineral Department of Sindh on behalf of government assured the investors of protection and said government was facilitating the investors and this conference was also part of these efforts of the provincial government. He said that provincial government has planned to establish Granite City at Nagarparker in Thar and Mineral City at Sonda in Dadu district. Dr. Khatu Mal Jeewan Advisor to Chief Minster for Mines and Mineral Department of Sindh government said coal deposits in Sindh were sufficient to meet the fuel requirements of the country for generations and one lac Mega Watt of electricity could be produced from these resources. The studies proved that Thar coal field was spread over an area of more than 9100 square kilometers having 175.506b tons of coal deposits. Dr. Saeed Ahmed Soomro Professor of Geology Department of Sindh University Jamshoro in his presentation said that at least 15.864 billion tons deposits of granite present in Sindh. Another expert of mines and mineral Sarfraz Ahmed Solangi said that Sindh has huge deposits of limestone (marble) which needs to be developed and processed in the province. The annual exports of marble were only $ 25 million dollars from Pakistan while war-stricken Palestine earned $380 million dollars from the exports of marble annually, he pointed out and suggested that we should establish processing plant for limestone in Sondha and other parts of the province.

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