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Massey Energy, Jindal Steel & Power Enter MoU for Mine Development, Operation
Jan. 13, 2010 Massey Energy Co. has signed a memorandum of understanding with Jindal Steel & Power Limited (JSPL) under which the parties will work together and bid for the development and operation of underground coal mining projects.
The parties said the collaboration’s major focus will be on, but not limited to, potential projects in India, Mongolia, Australia and the United States.
“We believe there is great potential for synergies between Massey and JSPL,” said Don L. Blankenship, Massey’s Chairman and CEO. “We expect that by combining our technical expertise in underground mining with JSPL’s broad portfolio of international assets and businesses, we will be able to establish profitable joint ventures that will both extend Massey’s coal producing opportunities and provide lower cost, more stable energy supply for Jindal’s planned global expansion.”
Under terms of the agreement, Jindal Steel & Power Limited will identify underground coal mining projects in India and other countries and obtain the necessary licenses, permits and approvals from the respective government authorities. Massey will provide technical mining expertise and will be responsible for the development of detailed underground mine project plans. Massey will also provide technical manpower and project management to ensure continuity and successful project implementation.
“We are very pleased to formalize the terms of our cooperation with Massey Energy Company,” said Anand Goel, Jt. Managing Director of Jindal Steel & Power Limited. “We are looking forward to extending our relationship beyond this MOU as appropriate joint venture opportunities are identified.”
Massey Energy Co. is headquartered in Richmond, Va., with operations in West Virginia, Kentucky and Virginia. It is the largest coal company in Central Appalachia and is included the S&P 500 index.
Based in New Delhi, India, Jindal Power & Steel Limited is a leading international player in steel, power, mining, oil & gas and infrastructure with annual revenue of over $2.1 billion. The company produces economical and efficient steel and power through backward integration from its captive coal and iron-ore mines. JSPL is a part of the Jindal Group.