Massey moves into India

More and more we are seeing India opening up its minerals sector to outside investment. The latest move is Massey Energy entering into an agreement with Essar Mineral Resources, a member of Essar Group of India, to jointly evaluate and develop select business opportunities on a project-by-project basis. The initial focus of the new partnership will be the development of coal reserves, coke ovens and a coal preparation plant to support an electric power plant to be constructed in India by Essar.

In the non-binding memorandum of understanding signed by both companies, Massey and Essar also agreed to evaluate selected mining projects in India and to evaluate the development of coke oven projects in India and elsewhere. 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.

“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. We have been developing a relationship with Essar for some time and are optimistic about the potential to work and grow profitably together.”