Ruias-led Essar Group today announced signing of a deal to buy Aries's coal mines in Indonesia for an estimated up to $200 million to partly meet the raw material needs of its power business.
"The Essar Group announces that it has signed a definitive agreement to purchase Aries coal mines in Indonesia," an Essar statement said.
The company expects to close the deal, which is subject to regulatory approvals, by April 2010.
Sources said the deal is estimated to be valued at around $175-200 million.
The Aries coal mines is estimated to have mineable reserves of 64 million tonnes of thermal coal.
This is a second move by the group in a month towards securing raw material for its businesses. Essar Group on March 6 announced buying US-based Trinity Coal for $600 million.
