Chinese mine operator in Thar halves production

The Chinese mine operator in Thar whose output feeds coal-based power plants generating 1,360 megawatts has reportedly cut its production by half over non-payment of dues to the tune of $60 million. The China Machinery Engineering Corporation (CMEC) — which works under an offshore agreement with Sindh Engro Coal Mining Company (SECMC) as the operator of an open-pit lignite mine in Block-II of the Thar coalfield — has formally informed SECMC about its “limitation of operation” that may lead to a complete mining halt within one month. Sources told Dawn the Chinese contractor hasn’t received any payment since May 2022. SECMC, which is backed by the government of Sindh, owes the Chinese contractor dollar-denominated payments under the heads of operation and maintenance (O&M) as well as engineering, procurement and construction (EPC) for the second phase of Block-II, which achieved commercial operations in October 2022.