MAE MOH LIGNITE II

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The Second Mae Moh Lignite Project is a second-stage expansion of the Mae Moh open-pit lignite mine to increase production capacity from 2.8 to about 5.0 million tonnes per year. The project forms part of a long-term national development strategy to develop indigenous energy resources to reduce dependence on oil imports. The proposed expansion in lignite production is needed to increase lignite-fired power generation at Mae Moh from 375 MW to 825 MW. The proposed project would reinforce economic pricing policies for lignite (studied under the earlier lignite project) to ensure that planned lignite expansions are economically and financially justified, and that EGAT's lignite mining operations are viable. It would further strengthen the operations both technically and financially through technical assistance, and assist in minimizing adverse enviromental effects of the mine. The project scope includes the engineering, procurement and erection of mining and related equipment (mainly conveyor belts, semi-mobile crushers, off-highway trucks, and auxiliary equipment), technical assistance, training and civil works.