Massey Energy Signs Agreement With Essar Mineral Resources Looks To Develop Business Ventures With Indian Company



    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
 together."
 
     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."
 
     Company Descriptions
 
     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
 http://www.masseyenergyco.com.
 
 
 

SOURCE Massey Energy Company

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