RICHMOND, Va., Nov. 28 /PRNewswire-FirstCall/ -- Massey Energy Company
(NYSE: MEE) today announced that it has entered into an agreement with
Essar Mineral Resources Ltd., 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 Essar Group has diverse assets in the manufacturing and service
sectors, including steel, energy, power, communications and construction.
Among its recent global acquisitions are Minnesota Steel, where it is
moving forward with plans for a $1.6 billion steel mill, as well as
Ontario-based Algoma Steel.
"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
The agreement provides opportunity for Massey to significantly expand
its global reach and provides an established partner in India, where demand
for coal and steel has grown dramatically.
"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."
Massey Energy Company, headquartered in Richmond, Virginia, with
operations in West Virginia, Kentucky and Virginia, 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 of
Steel, Energy, Power, Communications, Shipping & Logistics, and
Construction. Essar Global has an asset base of USD 10 billion (INR 400
billion) and employs 20,000 people 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.
FORWARD-LOOKING STATEMENTS: The foregoing release contains forward-
looking statements. Such forward-looking statements reflect current
analysis of existing information. Caution must be exercised in relying on
forward- looking statements. Additional information concerning factors that
could cause actual results to differ materially from those in the
forward-looking statements can be found in press releases as well as
Massey's public periodic filings with the Securities and Exchange
Commission, including Massey's Annual Report on Form 10-K and subsequently
filed interim reports. Such filings are available either publicly or upon
request from Massey's Investor Relations Department: (866) 814-6512. Massey
disclaims any intent or obligation to update its forward-looking
statements. For further information, please visit the Company's website at
SOURCE Massey Energy Company