Chinese Global Mining subsidiary Sino-Sindh Resources has signed a memorandum of understanding (MoU) with the provincial government of Sindh in Pakistan to mine in Block-I of the Thar Coal field.

Block-I covers an area of 122km2 from the Thar Coal and Energy Board, reports Pakistani newspaper The News.

The firm is planning to initially invest about $3bn to develop the coal mine with output capacity of 5Mtpa, along with an investment of $1.5bn in key infrastructure projects.

Sino-Sindh Resources CEO Liyang Liu said that the feasibility study will be completed in six months and the mine construction is expected to commence in the first week of April 2012.