Karachi: Sindh Engro Coal Mining Company (SECMC) signed key agreements with leading corporations of Pakistan and China along with top financial institutions of Pakistan in a landmark collaborative effort Monday.
Amidst the presence of Chief Minister Sindh, Syed Qaim Ali Shah – and officials of Sindh Engro Coal Mining Company (SECMC) a master shareholders’ agreement was signed between Engro, Thal Limited (House of Habib), Habib Bank Limited, HUBCO and CMEC(China Machinery Engineering Corporation).
The Master Shareholder Agreement will cover the entire common equity subscription of SECMC’s Thar Coal Project and demonstrates the confidence of leading sponsors in the project. The Financing agreements worth PKR 50 billion signed with leading banks of Pakistan will ensure availability of entire local financing at agreed terms and conditions.
In addition, SECMC has also signed Implementation Agreement with the Government of Sindh which entails approvals and commitments required from Government of Sindh for the project. Chief Minister Sindh while speaking at the occasion appreciated the hard work and dedication shown by the directors and management of the company. He further said that commercial production of Thar Coal will transform the energy scenario of Pakistan and Thar region. Furthermore, he thanked the Prime Minister of Pakistan for the continued support of this project.
Sharing the development that has happened on the project, Shamsuddin Ahmed Shaikh – CEO SECMC – also informed that the term sheet for Chinese financing had also been finalized and the documentation process currently is at an advanced stage with foreign financial closure expected very soon.
Khursheed Jamali, Chairman Board of Directors, SECMC further added, “This major breakthrough has only been made possible through the instrumental support provided at all forums by Government of Pakistan, Government of Sindh, Engro, Thal Limited (House of Habib), Habib Bank Limited, HUBCO, CMEC (China Machinery Engineering Corporation), UBL, Bank Alfalah, Faysal Bank, Askari Bank, Sindh Bank, Meezan Bank and Bank of Punjab. A number of top local industrial groups and investors that have joined hands with SECMC today which is a testament to the remarkable progress that has been made on the Thar Coal Project since its inception.”
SECMC has achieved substantial progress on the Thar Coal Project during the 2014 – 2015. Firm EPC contracts have been signed, all security packages completed and the physical work at mining site started with 3 million m³ overburden already been removed since May 2014. Company is expected to start producing coal by 2018.