India's Essar buys Indonesian coal mines

India's Essar Group has signed an agreement to buy the coal mines of PT Aries Internasional Indonesia. The deal will reportedly give Essar Power access to an estimated base of 100 Mt of thermal coal and mineable reserves of 64 Mt, in addition to existing thermal coal reserves of about 275 Mt in India.

The Aries coal mines are located in the Kutai region of East Kalimantan. Essar expects to close the deal by next month and begin production from the mines within a year.