Chinese company hints at halting work on coal mining in Thar due to delayed payments

A Chinese company, China Machinery Engineering Corporation (CMEC), on Wednesday hinted at stopping work on coal mining in Thar, Sindh, over non-payment of dues, reported 24NewsHD TV channel.

The production of 1,320 MW of electricity in the system is feared to come to a halt as coal mining in Thar may stop after September 10, informed sources have said.

The delayed payments to CMEC are the reason that the project is likely to be stalled. The pending dues that are to be paid to CMEC have reached $50 million.

Due to the delay in payments from June to August, the company has been facing difficulties in executing contractual matters.

The CMEC’s headquarters has set October as a deadline to collect all dues. In the next four months, payments of another $3 million will have to be made to CMEC.

“The contract will expire in the next four months. If the payments are not made, it will not be possible to continue coal mining from Thar Block No. 2 after September 10,” CMEC told the Sindh Engro Coal Mining Company (SECMC).

“There is a shortage of machinery and spare parts due to non-payment of dues. Difficulties are also being faced in operating important equipment correctly. The equipment is likely to be abandoned for a long period of time,” a letter from CMEC said.

“After September 10, it will be difficult to continue mining 25,000 tonnes of coal per day. SECMC must ensure payments from the government or the bank concerned before September 10,” it added.

Reporter: Ashraf Khan