CPEC is Transforming The Least Developed Parts of Pakistan

In a New York Times Op Ed titled "How Not to Engage With Pakistan",  ex US Ambassador to Pakistan Richard G. Olson says "Its (CPEC's) magnitude and its transformation of parts of Pakistan dwarf anything the United States has ever undertaken".  Olson goes on to warn the Trump Administration that "Without Pakistani cooperation, our (US) army in Afghanistan risks becoming a beached whale".

Among the parts of Pakistan being transformed by China Pakistan Economic Corridor (CPEC) are some of the least developed regions in Balochistan and Sindh, specifically Gwadar and Thar Desert. Here is more on these regions:

Gwadar Port City:

Gwadar is booming. It's being called the next Shenzhen by some and the next Hong Kong by others as an emerging new port city in the region to rival Dubai. Land prices in Gwadar are skyrocketing, according to media reports. Gwadar Airport air traffic growth of 73% was the fastest of all airports in Pakistan where overall air traffic grew by 23% last year, according to Anna Aero publication.  A new international airport is now being built in Gwadar to handle soaring passenger and cargo traffic.

In addition to building a major seaport that will eventually handle 300-400 million tons of cargo in a year, China has built a school, sent doctors and pledged about $500 million in grants for an airport, hospital, college and badly-needed water supply infrastructure for Gwadar, according to Reuters.

400 Km Long Kachhi Canal From Punjab to Balochistan

The Chinese grants include $230 million for a new international airport in Gwadar, one of the largest such disbursements China has made abroad, according to researchers and Pakistani officials.

New development work in Gwadar is expected to create as many as 20,000 jobs for the local population.

Steel Bridges on Multan-Qila Saifullah Section of Highway N-70 Conn...

Thar Desert:

Thar, one of the least developed regions of Pakistan, is seeing unprecedented development activity in energy and infrastructure projects.  New roads, airports and buildings are being built along with coal mines and power plants as part of China-Pakistan Economic Corridor (CPEC). There are construction workers and machinery visible everywhere in the desert. Among the key beneficiaries of this boom are Thari Hindu women who are being employed by Sindh Engro Coal Mining Company (SECMC) as part of the plan to employ locals. Highlighted in recent news reports are two Hindu women in particular: Kiran Sadhwani, an engineer and Gulaban, a truck driver.

Kiran Sadhwani, a Thari Hindu Woman Engineer. Source: Express Tribune

Thar Population:

The region has a population of 1.6 million. Most of the residents are cattle herders. Majority of them are Hindus.  The area is home to 7 million cows, goats, sheep and camel. It provides more than half of the milk, meat and leather requirement of the province. Many residents live in poverty. They are vulnerable to recurring droughts.  About a quarter of them live where the coal mines are being developed, according to a report in The Wire.

Hindu Woman Truck Driver in Thar, Pakistan. Source: Reuters

Some of them are now being employed in development projects.  A recent report talked of an underground coal gasification pilot project near the town of Islamkot where "workers sourced from local communities rested their heads after long-hour shifts".

Hindu Woman Truck Driver in Thar, Pakistan. Source: Reuters 

In the first phase, Sindh Engro Coal Mining Company (SECMC) is relocating 5 villages that are located in block II.  SECMC is paying villagers for their homes and agricultural land.

SECMC’s chief executive officer, Shamsuddin Ahmed Shaikh, says his company "will construct model towns with all basic facilities including schools, healthcare, drinking water and filter plants and also allocate land for livestock grazing,” according to thethirdpole.net He says that the company is paying villagers above market prices for their land – Rs. 185,000 ($ 1,900) per acre.

Summary:

Ex US Ambassador Richard Olson is absolutely right in his assessment that "(CPEC's) magnitude and its transformation of parts of Pakistan dwarf anything the United States has ever undertaken".  Olson goes on to warn the Trump Administration that "Without Pakistani cooperation, our (US) army in Afghanistan risks becoming a beached whale". The "magnitude" of CPEC and its "transformation" that Olson refers to is clearly visible in some of the least developed regions of Pakistan in Balochistan and Sindh provinces.  Gwadar port city and Thar desert are humming with unprecedented development activity fueled by billions of dollars of funds allocated by China and Pakistan.  

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Comment by Riaz Haq on July 28, 2019 at 10:05am

Second CPEC phase to boost industrial cooperation

https://tribune.com.pk/story/2022908/2-second-cpec-phase-boost-indu...

The second phase of China-Pakistan Economic Corridor (CPEC) is very important for Pakistan as it will give a boost to industrial cooperation and give birth to Special Economic Zones (SEZs), remarked Sichuan University Deputy Dean International Studies Professor Dr Song Zhihui.

Speaking at the ICCI, Song stressed that the setting up of SEZs would in turn create new opportunities for entrepreneurs of both countries for forming joint ventures and investing in areas of interest.

“The first phase of CPEC focused on energy and infrastructure development in Pakistan while the second phase will focus on industrial cooperation, which will yield beneficial results for the economy of Pakistan,” he said.

“Several companies of China are interested in investing and setting up factories in Pakistan because it is the best place for them.” He expressed the desire to organise a tourism promotion conference for Pakistan in a bid to highlight its tourism potential.

Song added that China was eager to enhance imports from Pakistan, which would uplift Pakistan’s exports. He urged the ICCI to cooperate in connecting right partners with Chinese counterparts in SEZs and other areas.

Speaking to the delegation, ICCI President Ahmed Hassan Moughal said the establishment of SEZs in Pakistan under CPEC would kick off a new phase of business opportunities in the country.

He asked Chinese companies to enter Pakistan with technology transfer for joint ventures and investment.

“Due to the growing population and emerging market, many sectors of Pakistan’s economy offer immense potential for investment and Chinese companies should benefit from these emerging opportunities,” he said. 

Comment by Riaz Haq on July 29, 2019 at 8:36pm

Construction of Hakla-D I Khan Motorway to be completed by June next year

https://www.app.com.pk/construction-of-hakla-d-i-khan-motorway-to-b...

Work of under-construction Hakla-DI Khan Motorway project was continuing smoothly and it was expected to be completed by June next, the revised deadline given by National Highway Authority(NHA).

The motorway forming part of China Pakistan Economic Corridor (CPEC) will reduce travel time between Islamabad and Dera Ismail Khan and boost economic activities in less developed areas of the provinces of Punjab and Khyber Pakhtunkhwa, an official of the NHA told APP on Thursday.

The four-lane 285-kilometre north-south motorway which starts from the Hakla Interchange on Peshawar-Islamabad Motorway, near Fateh Jang , and termites at Yarik near Dera Ismail Khan was planned to be completed by end of 2018 but later its completion time was extended to December 2019.

From Hakla, Fateh Jang, the motorway extends in a southwestern direction passing the towns of Pindi Gheb, Tarap, and Mianwali. Then the route will transverse the Sindh Sagar Doab region, and cross the Indus River near Dhup Sarri village near Isa Khail before entering into Khyber Pakhtunkhwa. The motorway will continue on wards before terminating near the town of Yarik, north of Dera Ismail Khan.

Comment by Riaz Haq on August 7, 2019 at 1:33pm

#Road #Infrastructure In #Balochistan in #Pakistan. Rs 2 billion allocated for widening-strengthening of about 32 km Rakhi- Gajj section of N-70. Rs 1 billion set aside for dualization of Yarik-Sagu-Zhob section of N-50 #CPEC western alignment- UrduPoint https://www.urdupoint.com/en/pakistan/upgrdation-of-road-infrastruc...

for construction of two lane highway from Basima to Khuzdar Rs 2000 million have been allocated in Public Sector Development Programme ( PSDP) of 2019-20fiscal year.

The total cost of the project would be Rs 19188 million and till June 30 ,2019 Rs 1500 million had been spent on the project. Similarly,he said, Rs 2000 million have been allocated for widening and strengthening of about 32 kilometers Rakhi- Gajj section of N-70. Total cost of the project is Rs 22, 994 million whereas till June 30, the Rs 14914 million has been spent.

He said Rs 1000 million have been earmarked for construction of black top road Yakmach-Kharan road. Total estimated cost of the project is Rs 13758 million out of which Rs 3406 million had been spent by end of previous fiscal year. He said that Rs 1000 million have been set aside for dualization and improvement of Yarik-Sagu-Zhob section of N-50 CPEC western alignment, Rs 1000 million have been allocated in the Public Sector Development Programme.

The total cost of the project is Rs 76488 million and Rs 2972 million had been expenditure had been occurred by June 30.

Among the new projects Rs 5000 million have been allocated for construction of Hoshab- Khuzdar section of Ratto Dero- Gawadar Motorway.

Comment by Riaz Haq on August 30, 2019 at 8:29pm

#Pakistan bridging the #DigitalDivide via #mobile #broadband. 40 unserved tehsils/towns being connected with 900Km optical #fiber cable in Bajaur, Mohmand, Khyber, Orakzai, Kurram & FR (Peshawar) areas and adding 1,795 kms of unserved highways.
https://nation.com.pk/19-Aug-2019/on-account-of-shareholding-in-ptcl

The Pakistan Tehreek-e-Insaf (PTI) government, in its first year, deposited Rs4.76 billion of dividends to the national exchequer on account of shareholding in the Pakistan Telecommunication Company Limited (PTCL). According to the one year performance report of Naya Pakistan, achievements of the Ministry of Information Technology & Telecom, during the last one year, covering areas like ease of doing business, bridging the digital divide, promoting entrepreneurship, increasing foreign exchange earnings and austerity are as follows:

Bridging the data divide through digital inclusion promoting integration projects have been launched to provide voice & broadband services in areas of North/ South Waziristan, FR Bannu/Lakki/Tank, Dadu/Hyderabad & Bahawalpur Districts (3,100 Mauzas) benefiting a population of approximately 6.5 Million.

Forty unserved tehsils/towns are being connected with 900Km optical fiber cable covering Bajaur, Mohmand, Khyber, Orakzai, Kurram & FR (Peshawar) areas.
Through National Roaming Services, 1,795 kms of unserved segments of National Highways including N10 (Uthal to Jiwani), N25 (Hub to Uthal, Uthal to Quetta), N65 (Quetta to Dera Allah Yar), N50 (Kuchlak to Sherani) and N70 (Killa Saifullah to Rakni).
Increasing software exports by establishing linkage between foreign and local ICT sector investors: The registration process of IT and IT enabled services companies with Pakistan Software Export Board (PSEB) is now paperless and automated, powering a real time online company directory, searchable by international investors, partners and customers.

This, in turn, has allowed for the number of IT & ITeS companies registered with the government to rise to 2,013 as of 30th June, 2019 compared to 1,762 registrations in the previous year showing an annual growth rate of 14.24%.

As of 30th June 2019, IT & IT enabled Services (ITeS) export remittances have surged to $902 million at a growth rate of 8.19%, whereas, PSEB estimates that total IT & ITeS exports are US$ 4.1 billion that include $0.5 billion earned by Micro, Small and Medium Enterprises (MSMEs), Independent Consultants & Freelancers.

Comment by Riaz Haq on December 14, 2019 at 7:55am

Life in #Pakistan's #Karakoram Mountains Where #China Is Investing Billions of US$ to Build a Multi-Lane Highway. Locals are making money from #tourism and eating more yak #meat. #CPEC #GilgitBaltistan https://n.pr/2RJJsPs

Much is expected of Karakoram Highway, which curls through the tall mountain ranges of northern Pakistan, reaching western China. Both countries are renovating it, seeing its potential as a trade route. Pakistan also views it as a way to consolidate control over territories contested with India.

But for some of the 500-mile route, it is barely a two-way road, carved out of the rock face that slopes sharply into valleys below. It is battered by rockfall, floods and earthquakes. A landslide in 2010 blocked a river and drowned about 14 miles of the road. In heavy snowfalls, the road all but shuts down.

The riskiest part is the last stretch to China. "We can actually call this part of the road as a museum of geohazards," says Sarfraz Ali, a geologist who studies the impact of climate change on the highway at Pakistan's National University of Sciences and Technology.

The Karakoram Highway, named for the spindly mountain range it traverses, was a major feat when it was built between the 1950s and 1970s. Now, the Chinese government has invested about $2 billion to rebuild a nearly 160-mile stretch of highway to replace the old Karakoram road between the towns of Havelian to Raikot. The final stretch is expected to be completed in March 2020.

The revamp is a key project of the China-Pakistan Economic Corridor, or CPEC, in which China plans to invest over $60 billion in energy and transport in Pakistan. CPEC, part of China's global Belt and Road Initiative, has stirred controversy because neither country has offered clarity on the terms of the money or how much of it is loans.

The Karakoram is open to much of the public, but foreign journalists are required to get Pakistani military permission to visit its far-northern stretches. When NPR recently gained access, its reporters found a road that has transformed communities along the way.

These days, vehicles cruise on the new highway north of Islamabad until they're diverted onto the old route, passing rivers and ancient Buddhist monuments and snarling by hectic markets. At night, some stretches are lit by the fluorescent light of flophouses and chai stalls frequented by truck drivers.

At the Jehangir Khan Hotel, owner Abdullah Zadran, 28, says he would go out of business because the Chinese were rebuilding this section of the road as a multi-lane highway outside of town.

Waiter Abdul Ghafour, 30, nods in agreement. "My owner won't keep me," he says, worried about losing his $4 a day wage.

He serves chai to Gul Ahsaan, 60, a trucker who looks forward to driving the new road. "My tires won't burst and I won't need to repair my truck," he says, gesturing to his vehicle. It is painted with birds and trees and adorned with bells and mini F-16 model jets. "He wants to fly," his friend jokes.

-------------------

Locals are making money from tourism and are buying more yaks, Abbas says. This year, he began with 500 and sold all but 32. "People like it because they don't eat anything other than grass," he says, sounding more like a hipster butcher than a grime-streaked 23-year-old shepherd. Before the road was fixed, he was selling barely 15 a year, and was surviving on chai and bread.

The bustle is apparent in the nearby border town of Sost, where cargo trucks come from across Pakistan to collect Chinese imports processed at the local dry port. Dozens of men sit outside, waiting for dollar-a-day jobs unloading boxes. Mohammad Iqbal, a 29-year-old customs official, says when he was growing up, "there was only one shop, only one hotel."

Comment by Riaz Haq on January 9, 2020 at 8:06am

To secure truly sustainable, safe and equitable development for CPEC, the governments of both China and Pakistan must improve consultation and communication with impacted local populations.

https://www.brinknews.com/will-chinas-massive-investment-in-pakista...

The Land and the Losers
At least, that’s the theory.

But not everyone sees the changes wrought by the CPEC so positively. On July 13, the Sindh Environmental Protection Agency, in the southern province of Sindh, held a consultation with locals concerned about coal expansion in Ranjho Noon, Thar, a desert region shared with India’s Rajasthan state.

The meeting concerned the fourth of 13 planned blocks of CPEC coal projects in Thar, where serious resistance has already greeted Block 2, now underway.

Based on our fieldwork with those being impacted by CPEC-funded energy projects, growing citizen mobilization in Sindh and Punjab may be turning into a political problem for Pakistan.

Projects planned for some of the poorest rural areas, including one of the world’s biggest solar parks (Quaid-e-Azam park, in Punjab) and coal and gas exploration in Thar (Sindh) promise prosperity through infrastructural progress, livelihood opportunities and climate resilience.

But while CPEC projects are already benefiting the national economy, the boon is less assured for those living in the project regions. To start with, for such projects, you need land — and lots of it. Many of the residents in CPEC target areas are homesteaders, pastoralists and small-business owners who hold customary land rights, inherited over decades or centuries.

Risk of Dispossession
Often, community members have no official deed to their property or to the common grazing land their livelihoods depend on. Without official papers, their land is seen as government-owned and ripe for the taking.

The United Nations’ free, prior and informed consent norm is meant to keep people facing such situations, whether in Pakistan or Bolivia, from being dispossessed and displaced. But in Pakistan, where the CPEC is helping the economy revive from stagnation, development aid has long been politicized, and proper consultation and compensation will be difficult to ensure.

We found that, so far, many of the initiatives have been carried out without free, prior and informed consent, creating unnecessary tensions between environmental projects and local people and raising concerns about maladaptation as the country progresses toward its nationally determined contributions climate plan.

For example, one farmer in Muzaffargarh, Punjab, told us that his community had seen displacement, severe pollution and a surge in waterborne diseases since a geothermal project started there in 1994.

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To secure truly sustainable, safe and equitable development for CPEC, the governments of both China and Pakistan must improve consultation and communication with impacted local populations.

Endangering Old Livelihoods
Nor did the community receive promised benefits, such as electricity and employment. In these mega-projects, jobs in construction, driving, engineering and especially management seem rarely to be offered to locals. Instead, Pakistanis from all over the country are brought in to fill them.

The farmer told us about ongoing resistance to a planned CPEC project that the government had thus far failed to heed. At this point, he said, they should expect violent opposition.

“We will stand and fight,” he warned. “We are a hundred thousand people, not just a few thousand.”

Lower Punjab has seen a disproportionate amount of energy development in recent years, housing six major energy plants within a 28-kilometer radius. The region is inhabited by the Saraiki population, a marginalized ethnic group that is all but invisible to the state.

Comment by Riaz Haq on January 9, 2020 at 8:07am

To secure truly sustainable, safe and equitable development for CPEC, the governments of both China and Pakistan must improve consultation and communication with impacted local populations. (Part 2)

https://www.brinknews.com/will-chinas-massive-investment-in-pakista...

Distrust of Developers
Even when the inhabitants are not directly displaced by infrastructure projects, their livelihoods are often endangered. Livestock routes are truncated by construction; streams and rivers are suddenly polluted.

One woman from Sindh reported that five pipelines had been run through her village, and that construction noise had become unbearable.

“They even blocked our access to hospitals,” she said, and also lamented that when strange men appeared in the fields, “we must cover our faces.”

Such incursions feel like a threat to local culture, particularly regarding gender norms. A man from the same village complained that while local men are not recruited as laborers, developers have sought to train women as drivers.

“We told them we won’t allow our women to do this!” he said with disbelief. “We don’t trust [the developers].”

The net result for women is that their lives have now become more restricted, both by ongoing construction and by the male response to it.

Fear and Anxiety
Many Pakistanis we spoke with in both Punjab and Sindh perceive CPEC development as just another form of oppression: a way to grab land and resources, further marginalizing already vulnerable populations.

The CPEC agreement was designed primarily to ensure the security of Chinese investments and citizens. To keep the 8,000-plus Chinese CPEC workers in Pakistan safe, the government is securing concerned areas using invasive monitoring tools, such as internet surveillance, stop-and-search policing and phone jammers.

No such steps ensure Pakistani citizens’ well-being. The result of all this change, anxiety and resentment is a burgeoning resistance.

In February 2017, representatives from 12 Sindhi villages affected by the Gorano Dam, a reservoir intended to collect the wastewater from coal and gas exploration, held a “patriotic” protest calling for the dam to be relocated to prevent poisoning local people and their livestock.

“No one is listening to us,” one of the protest’s coordinators told us. “Our basic rights are being snatched.”

He estimated that 15,000 people, 2,000 animals and 200,000 trees depend on the land now designated for destruction, as well as “fresh-water wells [and] our ancestors’ graveyard.”

If Pakistan’s government and CPEC developers continue to ignore these citizens, anxieties will fester. Already, discontent around the CPEC is being used by local political parties to bolster separatist narratives in Sindh, which has long-standing grievances over resource-sharing with the upper-river province of Punjab.

To secure truly sustainable, safe and equitable development, the governments of both China and Pakistan must improve consultation and communication with impacted local populations. Otherwise, the price of Chinese investment may be too high for Pakistan to pay.

Comment by Riaz Haq on March 9, 2020 at 9:52pm

NHA Director Construction Muhammad Sulait Ahmar said that the Japan’s most advanced technology was utilised in the steel bridges (on N-70 connecting Multan in South Punjab with Qila Saifullah in Balocgistan. It goes over Koh e Sulaiman)). He said: “This unique type of steel is not available in Pakistan. The technology includes box shaped girders made of maintenance free steel for more than 100 years and special embankment wall using light and strong material.”

The seven steel bridges were 11.5 kilometer long, connecting south Punjab to China-Pakistan Economic Corridor via N-70 from Bahawalpur to Multan, Dera Ghazi Khan, Fort Munro to Qila Saifullah to Gwadar and Iran-Pakistan border at Taftan, he said, adding that Muzaffargarh-Dera Ghazi Khan dual carriageway had already been completed and inaugurated by Prime Minister Imran Khan a couple of days ago.

He said that the then prime Minister Mian Nawaz Sharif had requested Japan for soft loan to establish the steel bridges. He said that the Fort Munro steel bridges project was executed in 2016 and Muzzafargarh-Dera Ghazi Khan dual-carriageway in 2017. The then Punjab chief minister Shahbaz Sharif had laid down the foundation stone of Muzaffargarh-Dera Ghazi Khan dual carriageway on October 14, 2017, he added. He said that the hilly portion of Dera-Taftan Road from Rakhi Gaaj to high mountains of Girdo (Fort Munro) was constructed in the late 19th century by the British rulers as a part of the strategic forward policy in the subcontinent. Starting from Rakhi Gaaj-Khar-Bewata, the project made the hilly portion of the road wide and safe for Gwadar-bound cargo traffic, he added.

Embassy of Japan First Secretary Economic and Development Teruki Hanzawa said that the project site was traffic choke point with continuous steep, slopes and sharp curves. He said that Japan had provided concessional loan with the lowest markup rate of 0.2pc and the repayment period was 40 years with 10 years grace period. He said that Japan had provided $142 million to improve N-70.

Teruki Hanzawa said that the physical work had been executed in 2016 and it was completed in the shortest period of three years with the help of Japanese and Pakistani engineers. He said: “A single track road has been expanded to double track and sharp curves with a radius of eight meters to 30 meters.”

Meanwhile, big trailers and trucks carrying heavy loads, passenger buses, vans and picnic lovers riding vehicles are found frequently moving on the route after the steel bridges gave a solution to the most dangerous and sharp curves in more than 6,000 feet high hilly area across Fort Munro. The Iranian cargo trucks are also entering the Punjab through Fort Munro steel bridges.


https://www.thenews.com.pk/print/621068-japanese-steel-bridges-add-...

Comment by Riaz Haq on April 16, 2020 at 4:04pm

Liebherr Mining Division receives orders for 28 excavators with 100 ton operating weight for #Pakistan’s #Thar Block I #coal #mine. Some R 9100B backhoe models have already been shipped in late 2019 to Sino Sindh Resources Company to mine 7.8 Mt/y https://im-mining.com/2020/04/06/liebherr-annual-report-highlights-...

In its Annual Report for 2019, published today, Liebherr Group had some interesting comments to make on the performance of its Mining Division. Growth was relatively flat with the division achieving revenues of €1,071 million, increasing its sales by €1 million, or 0.1 %, compared to the previous year.

The importance of the Australian and Indonesian market and its key customers there like contract miner Thiess and the big Indonesian coal mining groups is highlighted by the fact that the Asia and Oceania market accounted for some 55.4% of turnover, followed by Central & South America (14.2%), Africa, Near and Middle East (also 14.2%) then other non-EU apart from North America (8%), North America (6.1%) and EU (2.1%).

The company states: “In 2019, the mining industry remained quite stable, showing a slight downward trend by the end of the year. Given this development, the Mining division could slightly increase its overall revenues and market shares by, amongst others, improved sales with new machines. Growth drivers turned out to be North America with important gains in the USA and in Canada. While sales levels declined in the European Union, the business in Russia could counter this development with very favourable revenues. The division also reported moderate gains in Asia and Oceania with growth impulses generated by Pakistan and China. In Africa, Near and Middle East the division experienced a modest sales downturn.”

A real highlight for the division was the delivery of the last 12 of a fleet of 30 T 284 trucks to First Quantum Minerals, Ltd (FQML) for the Cobre Panamá mine, the biggest copper mine in the world. Following its aim to conquer new markets, the division also accepted a challenging order of 28 R 9100 mining excavators with 100 t operating weight for the Thar Block I coal mine in Pakistan. “Furthermore, the division is extremely happy to have concluded frame contracts with large mining companies that will provide good security for future deliveries and aftersales turnover for multiple years.”

The Pakistan excavators are understood to be R 9100B backhoe models, and the first have already been shipped in late 2019 to the customer, Sino Sindh Resources, whose 7.8 Mt/y mine will supply the Thar Coal Block 1 Power Generation Company’s power plants (2 x 660 MW) with coal for a 30 year period.

As far as product development is concerned, the Liebherr Mining Division invested mainly in increased safety and performance, as well as fuel efficiency. Special emphasis was put on the “zero-emissions mine” with an improved trolley system development that allows all truck sizes to be supplied with energy through an overhead electric line providing electric energy straight into the truck drivetrain. The division also made another important step towards the automated mine site by successfully equipping hydraulic excavators with a system that enables operator assistance through digging, which is the first step towards autonomous excavator operation.

Comment by Riaz Haq on April 16, 2020 at 7:49pm

Liebherr Mining Division receives orders for 28 excavators with 100 ton operating weight for #Pakistan’s #Thar Block I #coal #mine. Some R 9100B backhoe models have already been shipped in late 2019 to Sino Sindh Resources Company to mine 7.8 Mt/y https://im-mining.com/2020/04/06/liebherr-annual-report-highlights-...

In its Annual Report for 2019, published today, Liebherr Group had some interesting comments to make on the performance of its Mining Division. Growth was relatively flat with the division achieving revenues of €1,071 million, increasing its sales by €1 million, or 0.1 %, compared to the previous year.

The importance of the Australian and Indonesian market and its key customers there like contract miner Thiess and the big Indonesian coal mining groups is highlighted by the fact that the Asia and Oceania market accounted for some 55.4% of turnover, followed by Central & South America (14.2%), Africa, Near and Middle East (also 14.2%) then other non-EU apart from North America (8%), North America (6.1%) and EU (2.1%).

The company states: “In 2019, the mining industry remained quite stable, showing a slight downward trend by the end of the year. Given this development, the Mining division could slightly increase its overall revenues and market shares by, amongst others, improved sales with new machines. Growth drivers turned out to be North America with important gains in the USA and in Canada. While sales levels declined in the European Union, the business in Russia could counter this development with very favourable revenues. The division also reported moderate gains in Asia and Oceania with growth impulses generated by Pakistan and China. In Africa, Near and Middle East the division experienced a modest sales downturn.”

A real highlight for the division was the delivery of the last 12 of a fleet of 30 T 284 trucks to First Quantum Minerals, Ltd (FQML) for the Cobre Panamá mine, the biggest copper mine in the world. Following its aim to conquer new markets, the division also accepted a challenging order of 28 R 9100 mining excavators with 100 t operating weight for the Thar Block I coal mine in Pakistan. “Furthermore, the division is extremely happy to have concluded frame contracts with large mining companies that will provide good security for future deliveries and aftersales turnover for multiple years.”

The Pakistan excavators are understood to be R 9100B backhoe models, and the first have already been shipped in late 2019 to the customer, Sino Sindh Resources, whose 7.8 Mt/y mine will supply the Thar Coal Block 1 Power Generation Company’s power plants (2 x 660 MW) with coal for a 30 year period.

As far as product development is concerned, the Liebherr Mining Division invested mainly in increased safety and performance, as well as fuel efficiency. Special emphasis was put on the “zero-emissions mine” with an improved trolley system development that allows all truck sizes to be supplied with energy through an overhead electric line providing electric energy straight into the truck drivetrain. The division also made another important step towards the automated mine site by successfully equipping hydraulic excavators with a system that enables operator assistance through digging, which is the first step towards autonomous excavator operation.

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