Ministry of Energy (Petroleum Division)

LAKHRA COAL DEVELOPMENT COMPANY LIMITED

INTRODUCTION & INCORPORATION  


Lakhra Coal Development Company Limited (LCDC), was incorporated as a Public Limited Company on 6th February, 1990 under Companies Ordinance, 1984. The Company is a Joint Venture of Pakistan Mineral Development Corporation (PMDC), Government of Sindh (GOS) and Water & Power Development Authority (WAPDA) with equity capital of Rs.50 million shared in the ratio of 50:25:25 respectively. Benazir Employees Stock Option Scheme (BESOS) is being implemented in the Company, where 12% PMDC shares (Govt. Of Pakistan) had been distributed among the employees of the Company in the LCDCLEET Trust.

 LAKHRA COALFIELD

The Company project comprising operating coal mines, is situated in Lakhra Coalfield located about 70 km north-west of Hyderabad city and 200 km North-East of Karachi. The property lies between latitude 25°-35’ to 25°-55’ (north-south) and longitude 68°-0’ to 68°-12’ (east-west).

 

MINING CONCESSION


Presently an area of 7943 acres of Compact Block Coal lease is in possession of LCDC at Lakhra Coalfield for development of coal mines and supply of coal to LPGCL (WAPDA) Thermal Power Station at Khanote, District Jamshoro, Sindh. The total proved reserves in the area are 42 million tonnes.

 

 COMPANY’S OBJECTIVE

 
Prime objective of the Company is to develop Lakhra Coal Mines to supply Coal to 150 MW Thermal Plant of LPGCL (WAPDA) at Khanote which was originally planned for 6x50 MW with annual coal consumption of 15,00,000 M.Tonnes. However, only 3x50 MW plant was set up which also operated much below its rated capacity reducing the coal requirement to even less than 50% and rendering the mechanized mining uneconomical. At later stage it was decided that remaining 3 units would be set up by private sector instead of WAPDA and accordingly an area of 8622 acres, out of 16,564.71 acres of Compact Block was withdrawn from LCDC leased area.


IMPLEMENTATION STATUS

 

LCDC engaged Chinese Company for Geotechnical studies and design and development of mechanized mines in the entire area of 16,564.71 acres. Geotechnical studies were completed and mine design prepared by the Company. LCDC was in the process of signing mine development contract with Chinese Company but it transpired that WAPDA had decided not to set up remaining 3 power units and the installed units operating at much lower capacity were expected to consume half of stipulated annual quantity of coal. Under these circumstances it also became difficult to arrange finances for the Company and thus it was decided to drop the idea of mechanized mines and was considered appropriate to develop coal mines with present semi mechanized system to meet the limited coal requirement of installed thermal plant. Heavy mechanization cost would have rendered the venture uneconomical if assured uninterrupted market for stipulated annual quantity of 750,000 tonnes was not available for operating coalmines. At present LCDC is operating coalmines through local manual mining system through investment by its Coal Raising Contractor.

 

INFRASTRUCTURE FACILITIES

 

For the purpose of development / operation of mines necessary infrastructure as stated below has been developed: -

 

i)

Fair weather roads have been constructed for transportation of coal from mines to main road leading to market.  Also fair weather roads connecting various mines have been developed

ii)

Sufficient numbers of residential colonies for labour have been constructed along with necessary amenities.

iii)

Water supply arrangement for residential colonies as well various mines have been made through water tanker as well as concrete water tank at colonies and mines

iv)

Electric generators have been set-up for emergency lighting and mines lamp charging

v)

A mobile phone communication has been set-up to facilitate fast communication with mines site office.

 

MINE PLANNING AND TECHNICAL SUPERVISION

 
LCDC has employed a technical team of Mining Engineers, Geologist and survey officer supported with mine supervisory Sirdars and clerical staff.  All operations of Raising Contractor are supervised/ guided by this team to ensure that all operations are carried out in accordance with statutory guideline and maximum possible recovery is ensured.  The technical team overseas that the operations of Raising Contractor are in accordance with mine plan duly approved by LCDC.

 

 

STATUS OF MINE DEVELOPMENT

 

LCDC has 41 mines fully developed and capable of each producing 40 to 50 tonnes coal per day while 22 mines are under development. Coal excavation is carried out by applying shortfall retreating method after developing coal panels at 50 ft interval. When a panel is completely mined, it is sealed off and coal excavation is started from next panel. Ventilation circuit is maintained through main incline as intake and main shaft as return air way. In case mine workings are extended far away from main shaft, an additional shaft is provided to improve airflow through coalface. Shaft is also used for coal hauling and material lowering while incline is also used as traveling way for labor.

  

COAL SALES

 
Thermal Plant remained under trial during 1992-93 to 1994-95 and regular coal supplies could be started from the year 1995-96. Initially, coal supplies were made by LCDC partially from its own mines and partially from PMDC. After developing of Company’s own mines, the Company is capable of meeting total coal requirement of Thermal plant. However, approximately 60% of coal supplies are made by LCDC and balance 40% supply from coalmines of PMDC through an internal arrangement between LCDC and PMDC. Due to under capacity operation and frequent shutdowns of WAPDA Thermal Plant, coal supplies to plant are much below the planned quantity of 7,50,000 tonnes. The plant is hardly using 200,000 to 250,000 tonnes coal, which is also jointly supplied by LCDC and PMDC. Therefore, LCDC has started selling surplus coal in open market so that the company does not run in losses.

  

PRESENT STATUS

 
The activities of the Company have been restricted by the Board of Directors to the extent of its existing coal mining operation in Lakhra as the Company is to be privatized. The privatization is under active process of Privatization Commission.

 

 

HEAD OFFICE

LCDC Bungalow No.C6-A,

Block-F, Gulshan-e-Jamal,

near Macca Motors, off. Rashid Minhas Road,

Karachi-75250

Tel: (021) 99245232 and 99245235-9

Fax: 021-99245234

Email: lcdc1@pk.netsolir.com