Massey Energy Enters Agreement with Essar Mineral Resources
11/29/2007 - Massey Energy and Essar Group’s Essar Mineral Resources enter agreement to jointly evaluate and develop select business opportunities on a project-by-project basis.
Massey Energy Co. has entered into an agreement with Essar Group’s Essar Mineral Resources Ltd. to jointly evaluate and develop select business opportunities on a project-by-project basis.
Initially, the new partnership will focus on development of coal reserves, coke ovens, and a coal preparation plant to support an electric power plant that Essar will construct in India. Massey and Essar have also agreed to evaluate selected mining projects in India and to evaluate the development of coke-oven projects in India and elsewhere.
“The potential for synergies between the two companies is readily apparent,” said Don L. Blankenship, Massey's Chairman and CEO. “Essar is looking to dramatically increase its steel production and energy generation in the coming years. Massey has some of the best metallurgical and steam coal reserves in North America and the expertise to develop modern, cost-effective coal mining and processing operations overseas to fuel the expansion.”
For Massey, the agreement provides an opportunity to significantly expand its global reach and provides an established partner in India, where demand for coal and steel has grown dramatically. “We have been developing a relationship with Essar for some time and are optimistic about the potential to work and grow profitably together,” said Blankenship.
The strategic partnership is not limited to India or to coal, and the companies agreed to establish a joint venture to pursue any future projects selected for development.
“Our companies have the technical expertise and marketplace knowledge that will allow us to expand and leverage mutual opportunities in India and around the world,” said J. Mehra, CEO & Director of Essar Steel Holdings Limited. “Essar Minerals looks forward to a successful and long-term partnership with Massey Energy.”
Headquartered in Richmond, Va., Massey Energy Co. has operations in West Virginia, Kentucky and Virginia, and is the fourth-largest coal company in the United States based on produced coal revenue.
Essar Mineral Resources, Ltd. is a part of Essar Global Limited, a diversified group straddling the manufacturing and service sectors with an asset base of USD 10 billion (INR 400 billion) and 20,000 employees worldwide. With a firm foothold in India, Essar Global is focused on global expansion with projects and investments in Canada, USA, Africa, the Middle East, the Caribbean and South East Asia. Recent acquisitions include Minnesota Steel, where it is moving forward with plans for a $1.6-billion steel mill, as well as Ontario-based Algoma Steel.
