Business Standard reported that Essar plans to ship coal from one of its mines in Indonesia which has estimated reserves of 64 million tonnes to fuel its power projects in India.

Forbes Indonesia magazine in its latest issue 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 sector.”

It said that "What the Essar Group is doing in Indonesia ... Is part of long-term strategy to refocus the group on some of its core competencies in power, mining and steel. The use of Indonesian coal for Indian power plants matches up a ready supplier with an eager consumer.”

The magazine said that "The mine will add to Essar Group's coal resource base, which currently is 275 million tonne.”

Essar had purchased Aries coal mine spread across 5,000 hectares and with an annual potential output of 4 million tonne in April 2010 for USD 118 million and is in the process of starting production. The mine's coal output will Essar's Salaya-I and II plants being built in Gujarat. Two other coal mines in Kalimantan and Sumatra will be made operational after they receive the forest clearance.

Group's subsidiary Essar Energy has 1,600 MW of installed capacity and the same is expected to reach 9,670 MW by 2014. The entity is banking heavily on Indonesia and has purchased two more mines in the island nation.

(Sourced from BS)