India's Essar Group announced it will divert some of its coal from one of its Indonesian mines to help the world's third largest economy cope with its fluctuating power supply brought about by acute coal shortages.

Business Standard quoted an article by Forbes Indonesia magazine saying that Essar Group will source the raw commodity from a mine in Indonesia which holds estimated coal reserves of 64 million tonnes.

Forbes Indonesia magazine noting Indonesian coal for Indian power plants "matches up a ready supplier with an eager consumer said that "India's Essar Group is investing heavily in Indonesia to secure coal for demand at home ... (it) is making some big forays into the Indonesian coal secto.”

Mr Prashant Ruia CEO of Essar Group said that "Indonesia has maximum potential in terms of the size of the market...India is short of natural resources such as coal, iron ore, oil and gas and that is why we are investing internationally.”

Essar had just recently bought Aries coal mine in Indonesia for USD 118 million. Covering an expansive 5,000 hectares, the Aries coal mine is estimated to hold an annual potential output of 4 MT as of April 2010. It is now in the process of starting production.

Forbes Indonesia said that "The mine will add to Essar Group's coal resource base, which currently is 275 MT.”


(Sourced from community.nasdaq.com)