China Power Hub to Purchase Local Coal from Pakistan for Power Generation

CPHGC is interested in purchasing 40,000 tonnes of local coal each month at a price fixed in Pakistani rupees, so it has solicited proposals from businesses registered in Pakistan.

Within the scope of the China-Pakistan Economic Corridor (CPEC), China Power International Holding and HABCO of Pakistan have collaborated to form CPHGC as a joint venture. The power plant can be found at Hub, located in Balochistan.

Previously, the plant was using coal imported from South Africa and Indonesia; however, in response to the skyrocketing prices of imported coal, the government has mandated that the plant switch to using coal from the local area.

The owner of a coal supply firm, Masood Khan Nassar, expressed his approval of the action and stated that it would benefit the nation and the local coal dealers in various ways. The price of imported coal from Afghanistan is around 75,000 rupees per tonne, while the cost of coal imported from Indonesia has risen to as high as 95,000 rupees per tonne. On the other hand, local coal can be purchased for 40,000 rupees per tonne.

When asked about the availability and quality of the local coal, Masood stated that the coal mines in Balochistan’s Duki and Harnai areas could produce between 6,000 and 8,000 metric tonnes of coal every single day. “We are already supplying coal to the Sahiwal coal-fired power plant,” he said. “The Sahiwal coal-fired power plant is one of our customers.”

According to an energy analyst, switching to local coal would help preserve valuable international reserves and bring down overall prices. According to him, in addition to this, it would also boost the number of job and business prospects available to workers and entrepreneurs in Pakistan.