Essar Confirms Trinity Coal Acquisition, Seeking Other Deals

March 6 (Bloomberg) -- Essar Group, the Indian business group controlled by billionaire brothers Shashi and Ravi Ruia, said it has acquired 100 percent of Trinity Coal.

Trinity will supply Essar’s U.S. steel operations, Essar Group Chief Executive Officer Prashant Ruia said at a news conference today.

Essar’s U.S. investments will increase to $4 billion, Ruia said, adding the company will continue to look for acquisitions.

Essar’s move follows steps taken by other Indian power companies, such as Tata Power Co. and Reliance Power Ltd., to secure coal assets overseas in order to supply surging power consumption in the world’s second-fastest growing economy. Over 75 percent of India’s power generation is coal-fired.

Denham Capital Management LP, an energy and commodities- focused private equity firm, announced yesterday that it had agreed to sell its Trinity Coal unit for $600 million to Essar Minerals, a unit of the Mumbai-based group.

Trinity Coal owns and operates six mining complexes in the U.S. states of Kentucky and West Virginia that hold an estimated 200 million tons of coking and thermal coal, according to Denham’s statement. The company currently produces 7 million tons a year and has plans to increase that to 10 million tons, the statement said.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net