Massey Energy Signs Agreement With Essar Mineral Resources
Looks To Develop Business Ventures With Indian CompanyRICHMOND, Va., Nov. 28 /PRNewswire-FirstCall/ -- Massey Energy Company
(NYSE: MEE) today announced that it has entered into an agreement with EssarMineral Resources Ltd., a member of Essar Group of India, to jointly evaluateand develop select business opportunities on a project-by-project basis. Theinitial 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 tobe 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 andto evaluate the development of coke oven projects in India and elsewhere. Thestrategic partnership is not limited to India or to coal, and the companiesagreed to establish a joint venture to pursue any future projects selected fordevelopment.
The Essar Group has diverse assets in the manufacturing and servicesectors, including steel, energy, power, communications and construction.Among its recent global acquisitions are Minnesota Steel, where it is movingforward with plans for a $1.6 billion steel mill, as well as Ontario-basedAlgoma Steel.
"The potential for synergies between the two companies is readilyapparent," said Don L. Blankenship, Massey's Chairman and CEO. "Essar islooking to dramatically increase its steel production and energy generation inthe coming years. Massey has some of the best metallurgical and steam coalreserves in North America and the expertise to develop modern, cost effectivecoal mining and processing operations overseas to fuel the expansion. We havebeen developing a relationship with Essar for some time and are optimisticabout the potential to work and grow profitably together."
The agreement provides opportunity for Massey to significantly expand itsglobal reach and provides an established partner in India, where demand forcoal and steel has grown dramatically.
"Our companies have the technical expertise and marketplace knowledge thatwill allow us to expand and leverage mutual opportunities in India and aroundthe world," said J. Mehra, CEO & Director of Essar Steel Holdings Limited."Essar Minerals looks forward to a successful and long-term partnership withMassey Energy."
Massey Energy Company, headquartered in Richmond, Virginia, withoperations in West Virginia, Kentucky and Virginia, is the fourth largest coalcompany in the United States based on produced coal revenue.
Essar Mineral Resources, Ltd. is a part of Essar Global Limited, adiversified group straddling the manufacturing and service sectors of Steel,Energy, Power, Communications, Shipping & Logistics, and Construction. EssarGlobal has an asset base of USD 10 billion (INR 400 billion) and employs20,000 people worldwide. With a firm foothold in India, Essar Global isfocused 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 analysisof existing information. Caution must be exercised in relying on forward-looking statements. Additional information concerning factors that couldcause actual results to differ materially from those in the forward-lookingstatements can be found in press releases as well as Massey's public periodicfilings with the Securities and Exchange Commission, including Massey's AnnualReport on Form 10-K and subsequently filed interim reports. Such filings areavailable either publicly or upon request from Massey's Investor RelationsDepartment: (866) 814-6512. Massey disclaims any intent or obligation toupdate its forward-looking statements. For further information, please visitthe Company's website at http://www.masseyenergyco.com.SOURCE Massey Energy CompanyRoger Hendriksen, Director, Investor Relations of Massey Energy Company,+1-804-788-1824
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