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"Essar will work with Trinity Coal and other coal suppliers to ensure a secure, competitively priced supply of coal for Essar Steel Algoma and its other steel and power operations worldwide," stated Converse Heels For Kids
Essar Steel Minnesota expects to become Essar Algoma's primary iron ore supplier once it begins producing iron ore pellets within a few years and the Sault operation expects "significant" freight savings.
Essar has steel as well as iron ore and coal assets throughout North America and is looking to make up to $4 billion in capital investments, including more than $1.5 billion into the Essar Steel Minnesota complex, the state's largest industrial project in more than three decades.
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Ste. Marie's Essar Steel Algoma Inc. appears to be the final destination for the bulk of future Trinity Coal Corp. metallurgical coal output from the central Appalachian coal basin of southern West Virginia and eastern Kentucky.
The transaction, subject to regulatory approval, is expected to close later this month and includes 10 surface and three underground mines as well as six highwall miner units at six complexes and 200 million tonnes of coal reserves half of which are metallurgical grade suitable for steelmaking.
As well, it wants to more than triple crude oil refining capacity from 10.5 to 35.4 million tonnes. Also within a few years, it wants to increase Trinity Coal output by 3 million tonnes annually, and it wants to expand power generation from 1,200 megawatts Converse One Star White Leather to 6,000 MW by 2012.
Half of Trinity Coal Corp
reports, will focus on ramping up the capacities of North American assets, including the establishment of a pellet plant for Essar Minnesota to access 1.4 billion tonnes of ore reserves on the site.
Rewant Ruia, according to media Converse Quinceanera Shoes
Essar Algoma currently consumes about 1.6 million tonnes of coal on an annual basis from assorted sources metallurgical coal baked at high temperatures over several hours to produce high carbon blast furnace fuel for the company's iron smelter.
Essar, according to media reports, is facing stiff competition from Indian and foreign rivals in the hunt to secure mining assets.
Forecasters are projecting a "steep surge" in international pricing, possibly a doubling of current coking coal prices in the next two years, as the global economy recovers.
The Essar Group, with a presence in assorted core businesses, has an ambitious expansion agenda, including a near doubling of steelmaking capacity, from 14 to 25 million tonnes, within a couple of years.
Steelmakers are also bracing for a similar pricing surge in another essential raw material, iron ore, of which Essar Algoma consumed nearly 4 million tonnes in 2006, the latest data available.
Essar Algoma currently has one operational blast furnace, No. 7, one of the largest in North America, with 8,000 tonnes of daily hot metal capacity, while a second furnace, No. 6, with about one third of No. 7's capacity, has been off line for more than a year but will be fired up again when market conditions and it will need access to coking coal and iron ore.
Essar's Sault operation will need to increase its annual coal and iron ore tonnage shipments to meet increased output demands in the near future.
Essar Minerals, a subsidiary of India's Essar Group conglomerate, parent company of Essar Algoma, reached a $600 million definitive agreement late last week with Boston based Denhem Capital Management for Trinity Coal, the 21st largest United States coal producer.
Brenda Stenta, Essar Algoma's corporate communications manager, in an e mail to The Sault Star. utilities.
It's hoped the pellet plant can be operational within a few years, followed a few years later by a slab production facility to feed North American steel producers around the Great Lakes.
Media reports out of India are saying as much as half of Trinity's seven million tonne annual output could be bound for Essar Algoma's coke oven batteries.
Initial reports had Essar Steel Minnesota, a still to be constructed two phase mining steelmaking facility, also accessing Trinity Coal's metallurgical output, but the proposed plant will essentially be an electricity and natural gas fired facility, with no need for a blast furnace, and thus no need for coking coal.
Meanwhile, Rewant Ruia, the 27 year old son of Ravi Ruia, a co founder of Essar Group and board vice chairman, has been placed in charge of the Group's North American operations, including Essar Algoma.
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