This paper discusses the complex relationship between resource development, land attachment and conflict by examining the role of religious identity in context of a coal development project in District Tharparkar in Pakistan. Research was conducted in six rural communities lying in the vicinity of the coal project. The results obtained are important for two reasons: (1) they provide insights into the heterogeneous composition of communities based on religious identity, which explain contrasting perceptions towards project development; and (2) they entail a practical dimension that suggests that in the process of assessment, development and management of coal resources, differences related to religious and community identity must be recognised and taken into account to minimise community conflict.