Mining Technology Excellence Awards 2025: Sindh Engro Coal Mining Company (SECMC)

With growing local and foreign investor interest in Pakistan’s vast rare earth mineral resources, the country stands on the brink of a mining revolution. However, the nascent sector continues to face significant challenges in technology adoption and infrastructure development. SECMC – one of Pakistan’s most successful public-private partnerships – has been at the forefront of this transformation, having developed the country’s first open-pit lignite mine in the Thar Desert (Block II). Guided by its vision to lead as a world-class, sustainable mining company, SECMC has introduced large-scale surface mining using high-capacity hydraulic excavators and rigid dump trucks to drive operational efficiency. Through structured mine planning and industry-leading software, SECMC has achieved a production capacity of 7.6 million tons per annum, generating 1,320 MW of affordable electricity and contributing to Pakistan’s energy security.

In line with its vision to lead as a world-class, sustainable mining company, SECMC’s ongoing investments in digital transformation, automation, and operational excellence have been recognized across four categories in the Mining Technology Excellence Awards 2025. The company received the Business Expansion award for its strategic and scalable growth in production capacity. This expansion has been paired with digitized mining operations, earning SECMC the Innovation award. Its systematic approach to risk management and workforce safety was recognized through the Safety Award for Critical Control Management, while the Environmental award acknowledged SECMC’s sustainable and resource-efficient wastewater management practices.

Mine digitalization: Advancing smart mining in Pakistan

SECMC’s digital transformation journey has been guided by its vision to become a world-class leader in the mining industry. A key milestone in this journey is the adoption of a geotechnical radar-based slope monitoring system, a significant technological leap for Pakistan’s mining sector. Previously, pit slope monitoring was a manual and time-consuming process, often leaving room for error. Today, with real-time data streaming around the clock, the team can detect even the slightest ground movement – sometimes less than a millimeter – across large areas. This enables data-driven, high-quality decision-making that has improved mining safety. The integration of live video feeds and atmospheric correction tools further ensures the availability of accurate and timely information.

Recognizing that production measurement was another area ripe for improvement, SECMC has initiated the implementation of a laser-based system to measure the volume of coal carried by each truck. Instead of relying on estimates or manual logs, the new approach uses RFID tags and laser scans to automatically track every load. This shift is expected to reduce discrepancies and simplify the audit process.

Another key advancement is the shift to real-time 3D laser scanning at the mine’s West Wall. In the past, the planning team had to wait several days for drone survey data to be processed before updating designs or schedules. With the new system, they now have instant access to up-to-the-minute terrain models, enabling faster and more precise responses to changing ground conditions.

These digital transformation initiatives are backed by a strong IT backbone. SECMC has invested in modular data centers designed to withstand the harsh desert environment, along with advanced cybersecurity systems to safeguard critical information. The result is a more transparent, agile, and efficient operation—comparable to leading global mining companies and setting a new benchmark for the sector in Pakistan.

Brownfield expansion: Scaling production and strengthening energy security

SECMC’s operational expansion has been carefully planned and aligned with the country’s evolving energy needs. The company adopted a phased approach, starting with a baseline capacity of 3.8 million tons per year, which was later doubled to 7.6 million tons annually. As a result, Pakistan has been able to save valuable foreign exchange by reducing reliance on imported coal. With each phase, the cost of coal has decreased from $47.9 to $36.7 per ton, delivering benefits to both the power sector and end consumers. Phase III is now underway to further increase capacity to 11.2 million tons per year, adding 660 MW of electricity based on indigenous Thar coal and lowering the expected tariff to $32 per ton.

This progress has been made possible through consistent support from the Federal Government, the Government of Sindh – SECMC’s majority shareholder – and the collaboration of leading business groups such as Engro, the House of Habib and HUBCO. As an early-harvest CPEC project backed by a sovereign guarantee, SECMC stands as a strategic national priority.

Looking ahead, the company is working to expand Thar coal’s application beyond power generation to industrial sectors including cement, steel and fertilizer through coal gasification technology. Meanwhile, the Government is fast-tracking the Thar railway line, which will create a nationwide logistics network to transport Thar coal efficiently and enable future exports.

Critical control management: Enhancing safety through systematic risk management

Safety at SECMC is a non-negotiable core value. The company has adopted a proactive approach to identifying and managing risks, going well beyond regulatory requirements. In its safety journey, one of the first steps was to engage external experts to train safety leaders and cross-functional teams. Together, they mapped the most critical risks, known as Major Unwanted Events (MUE), across all areas of operation, from mining to utilities.

Using BowTie analysis, each MUE is visually mapped with its threats, consequences and controls, allowing managers and front-line teams to clearly understand which controls are critical and why. Unlike traditional safety systems, Critical Risk Management (CRM) goes further by requiring regular field verification, ensuring that barriers are not only documented but consistently checked and maintained.

Technology is also playing a key role here as well. SECMC is deploying an AI-powered Fatigue and Driver Management System across its mining fleet. The system detects fatigue, seatbelt violations and other unsafe behaviors, sending real-time alerts to supervisors. Early results show a significant decline in fatigue-related incidents and unsafe driving.

By combining structured risk management with real-time monitoring, SECMC is strengthening workplace safety and minimizing the likelihood of serious incidents. As of September 2025, the company has achieved 18 million safe man-hours, demonstrating its commitment to achieving the zero-injury goal by instilling a culture of behavioral safety and strengthening HSE systems.

Wastewater management: Demonstrating leadership in circular water use

Thar Desert is the most water-scarce region in Pakistan. In response to this reality, SECMC’s approach to wastewater management emphasizes data-driven planning, proactive risk management and inclusive stakeholder engagement, positioning it as a role model for sustainable mining.

Instead of disposing of the brine generated by its reverse osmosis plants, SECMC explored practical reuse options. Water quality tests confirmed that the brine could be safely utilized for dust suppression on haul roads, turning a potential waste stream into a valuable operational resource.

By repurposing this by-product, SECMC has reduced saline water discharge into the environment and lowered its reliance on fresh water for dust control. The process is simple: the brine is loaded into water bowsers and sprayed along haul roads, keeping dust levels low and improving on-site safety. This initiative reflects a circular water use model, where waste from one part of the operation becomes a resource for another.

To ensure transparency and regulatory compliance, SECMC monitors water quality and discharge in line with Sindh Environmental Protection Agency (SEPA) standards and voluntarily adheres to key parameters of the U.S. EPA 40 CFR Part 434. These efforts are supported by advanced infrastructure, including Reverse Osmosis and Sewage Treatment Plants (STPs), which treat and reuse over 43,000 cubic meters of water each month for landscaping, sanitation, and operational needs. As a result, the company has significantly reduced its dependence on underground freshwater sources.

SECMC has also set a global benchmark by becoming the first mining company in the world to achieve Alliance for Water Stewardship (AWS) Gold Certification for its complete mining operations — a recognition of its leadership in sustainable water management.

Company Profile

Sindh Engro Coal Mining Company (SECMC) is Pakistan’s leading coal producer, operating the country’s first open-pit lignite mine in Block II of the Tharparkar region, Sindh. With an annual production capacity of 7.6 million tons, SECMC supplies indigenous lignite coal to power producers, playing a critical role in supporting Pakistan’s energy security by reducing reliance on imported fuels. Thar Foundation, the CSR arm of Block II entities, drives community investments to improve the quality of life in Tharparkar through inclusive development initiatives.

SECMC is a public-private partnership formed through a joint venture between the Government of Sindh, Engro Energy Limited, and key partners including Thal Limited (House of Habib), Habib Bank Limited (HBL), Hub Power Company (HUBCO), and China Machinery Engineering Corporation (CMEC). In a strategic development, Houlinhe Open Pit Coal Mine, a subsidiary of State Power International Mengdong (SPIM) has joined SECMC as a strategic investor and now holds a seat on the company’s board.

Guided by our vision, we remain committed to energizing Pakistan’s future by leading the way as a world-class, sustainable mining company.

Telephone: +92 (21) 32426682-6 / 32426711-5

Fax: +92 (21) 32415007 / 32427938

Links
Website: https://www.secmc.com.pk/