Implementation Status

LCDC engaged Chinese Company for Geotechnical studies and design and development of mechanized mines in the entire lease area of 16,564.71 acres. The Geotechnical studies were completed. Chinese Company Drill 26 holes, total metrage of 2922 meters were drilled and mine design prepared by the Company at a cost of Rs.30.902 million in 1993 and a draft contract for development of mechanized mines was prepared. 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 coal mines. At present LCDC is operating coal mines through local manual mining system through investment by its Coal Raising Contractor.

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