The continuous expansion of the cement industry is fuelling the demand for imported coal in the current financial year, a leading coal importer told Daily Times. It is expected that the cement industry would consume 3.2 to 3.5 million tonnes of coal this year. Najeeb Balgamwala, a leading coal importer said that the reason for the rise in import was the massive capacity expansion undertaken by the cement industry. In the previous year the industry used 2.9 million tonnes of coal and until this month importers have brought around 0.7 million tonnes of coal for cement companies. Pakistan imports coal mainly from South Africa, Indonesia and China. The country has also imported coal from Australia and Russia but in very small quantities. He said that it is expected that the country would import around 4 million tonnes during the current fiscal year, as the cement industry is expanding. According to him the coal import would have been much higher but some of the local companies have started to buy local coal because of the high prices of imported coal. Previously the companies bought about 0.3 to 0.5 million tonnes from importers, but as the prices of the coal rose the demand has reduced, he added. Pakistan started importing coal a few years ago as the demand from the cement companies surged after the industry switched its plants from oil to coal to decrease its cost of production. Pakistan has around 180 billion tonnes of coal reserves, with the reserves in Thar at an estimated 175 billion tonnes. Pakistan produces 3.2 million tonnes of coal every year, but most of it is not of good quality. As local coal mines are not mechanised, miners have to go 500 to 1000 feet deep, which increases cost of production. A coal washing plant, which was imported form united Kingdom was set up last year at Dhabeji costing Rs 50 million with a capacity to purify 2000 tonnes of coal per day. Both local and imported coal is being washed in the plant making local coal useable for the companies. Three more plants are currently being installed in Punjab. Coal-washing plants ensure that the coal has little impurities that reduces the production cost of cement industry. Cement makers have to use expensive imported coal because the locally available coal do not meet their specific requirement. Coal is the cheapest source of thermal energy used in industrial sector and has the ability to replace other expensive fuels such as furnace oil. Local coal has a higher sulphur content than imported that makes it unable to produce the required heat level. This makes it acceptable for power plants, but not for cement plants. Pakistan, India and China are three countries in the world having reserves sufficient for the next 250 years.