20000214

'Govt gives top priority to mineral development'

KARACHI: Sindh Minister for Industries and Mineral Development Deewan Muhammed Yousaf Farooqui has said government attaches utmost importance to mineral development in the Sindh province and would provide all possible support for exploration of coal in the province.

This, he said, while talking to a delegation of Smith Associated Power and Mining Company USA, led by its Vice President, Dave Nickerson at his office here on Sunday.

Yousaf Farooqui asked the delegation to submit a detailed working paper for development of Lakhra Coal Fired Power Project so that the matter be taken up with government of Pakistan.

The delegation informed the minister that their proposed project for 450 mw electricity envisages an investment of around $500 million in a backward area of district Dadu, where around two billion tonnes of good quality lignite (coal) is available.

The delegation members further said that an expansive feasibility study of the project has been carried out and their tariff was lower as compared to furnace oil fired power projects and no government money and fuel supply guarantees were involved.

They further said that integrated projects based on indigenous coal needed approval right now if generation is required around 2005.

They said that on government approval they would conduct a feasibility study at their own cost to finalise the numbers and submit to the Government of Pakistan for approval. If the study did not address to the government concerns, they would abandon the project without any claim against the government. APP