China to Invest US$1.5 billion in Thar Coal

Pakistan

China to Invest US$1.5 billion in Thar Coal

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A Chinese company signed a MOU with Pakistan and vowed to invest US$1.5 billion in Thar Coal.

20 September,2011 06:18 pm

In this regard, a Chinese delegation called on Saleem H Mandviwalla, Minister of State/ Chairman Board of Investment at BOI and discussed crisis of power and other issues with the minister and suggested some ways to overcome this crisis.Minister of the State informed that M/s. Sino-Sindh Resources, a local subsidiary of Global Mining Company is investing in Thar Coal Block-1 for coal mining and power generation of 900 MW. He further informed that Global Mining Company has signed an MOU with Government of Sindh for the project and the company plans to invest US $ 4.5 billion till 2016.Mr. Saleem H Mandviwalla, Minister of State/ Chairman, Board of Investment appreciated the efforts being made by the company for their investment plans and briefed that in order to market Thar, a comprehensive incentive package has been developed with consultation from all stake holders, which included: 20% IRR to firms, 30 years exemption on corporate tax, all custom duties on import of coal mining projects allowed at zero% to reduce the initial capital investment, exemption on withholding tax to shareholder on dividend for initial 30 years, exemption for 30 years on withholding tax on procurement of goods and services during project construction and operations to reduce the initial capital investment.He further said that Thar Coalfield would also be declared as Special Economic Zone which will bring further advantages and incentives to the company.Mr. Liyuang Liu, Chairman of the company informed that they would complete feasibility study during six months and mining would be started in April, 2012. He also said that a Sino-Pak friendship has become an example for the world and we are standing side by side with the people to Pakistan to overcome the shortfall of power in Pakistan.The delegates informed that Global Mining Company also intends to invest in infrastructure & construction such as transmission line, road network, communication etc. The Minister of State/Chairman, BOI assured the delegates for all possible support from Board of Investment and the government for their projects in Pakistan.Mr. Jay, Q Liang-Vice Chairman, Mr. Peter Zee, Executive Director, Mr. Jian Zhao-Geologist, Mr. Abdul Qayoum-Director, Mr. Athar Naseem Shaikh, of the company and senior officers from BOI were also present at the meeting.