Pakistan has extended its offer of financial incentives to projects based in the coalfields of the Thar Desert in southeast Pakistan.
According to Oracle Coalfields, a UK-based developer of a lignite project in the Thar Desert, the provincial government will extend its offer of a US-dollar-based 20% Initial Rate of Return (IRR) to all coal mining projects based on Thar coal that achieve financial closed before the end of the year.
The incentive is a fixed 20% IRR in US dollar terms to be applied on a cost plus basis determination of coal price, explained the company in a press release.
"The extension of the 20% IRR (in US dollar terms) demonstrates the commitment of the Government of Sindh to the development of Thar coal,” said Shahrukh Khan, CEO of Oracle. “This is an attractive rate of return, designed to encourage foreign inward investment for the development of Thar. Oracle is committed to this project which will help to alleviate the country's power shortfall."
Oracle is developing a 1.4 billion t lignite resource in the Thar Desert with an associated 600 MW mine mouth power plant.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/exploration-development/21032016/pakistan-extends-incentives-for-thar-coal-development-2016-434/