The Essar Group is likely to buy Trinity Coal, a US based coal producer, in a
deal worth $550-600 million (Rs 2,500-2,735 crore). Trinity is owned by private
equity investment firm Denham Capital Management.
Trinity has mines in Kentucky and West Virginia in the US, with reserves of
200 million tonne and an annual output of about 7 million tonne.
This mine acquisition is expected to provide coking coal and thermal coal
linkages for Essar's steel mills in the US and for a power project under
construction in India.
Essar Power is developing a 1,200-mw power project in Gujarat, which is based
on imported coal. It is also setting up a
Rs
4,800-crore power project at Salaya near Jamnagar in Gujarat and the
imported coal-based project is slated for completion by 2011.