INDIAN MULTINATIONAL ESSAR GROUP TO BUY ARIES COAL MINE

Jakarta, March 26 (ANTARA) - An Indian conglomerate, Essar Group, plans to buy Aries coal mine in Indonesia.

Essar Group director Anshuman Ruia said in a press statement received here on Friday the mine ownership in Indonesia would increase the company's asset portfolio on coal by 100 million tons from its stock of 275 million tons so far in India.

He said he hoped the signing of the definitive agreement for the purchase would be fully done in April.

By buying the Aries coal mine in Kutai, East Kalimantan, the company, which is also the owner of Essar Power, will secure 100 million tons in coal supply and an estimated reserve of 64 million tons.

The Aries coal mine has quality coal bitumen with 6,000 gross calorific value (GCV) and low ash and humidity suitable for power generation.

The minerals are needed to meet the inter-Essar companies' integrity and secure operations raw materials supply, he said.

Through Essar Power as the second biggest private company in India it is now building six power plants in India with a capacity of producing 1,220 MW which is to be raised to 6,100 MW in 2012.

The power generating company has also had a gas-powered electricity plant in Hazira and a power plant in Vadinar and a gas coke oven in Algoma, Canada.

The group also runs steel, energy, electricity, communications, shipping, logistics, construction and mineral businesses. It is operating in more than 20 countries in five continents and employing more than 60,000 workers with revenues totalling US$15 billion.