The companies will work together on the bidding, development and operation of projects, and will maintain a focus on India, Mongolia, Australia and the United States. The MoU will not be limited to those locations.

"We believe there is great potential for synergies between Massey and JSPL," producer chairman and chief executive Don Blankenship said.

"We expect that by combining our technical expertise in underground mining with JSPL's broad portfolio of international assets and businesses we will be able to establish profitable joint ventures that will both extend Massey's coal producing opportunities and provide lower cost, more stable energy supply for Jindal's planned global expansion."

The agreement gives Jindal Steel and Power responsibility for the identification of coal projects in India and other locations, as well as to obtain licenses, permits and agreements.

Massey will oversee the details of mine project plan development, and will provide technical mining expertise, technical manpower and project management.

"We are very pleased to formalize the terms of our cooperation with Massey Energy Company," JSPL managing director Anand Goel said.

"We are looking forward to extending our relationship beyond this MoU as appropriate joint venture opportunities are identified."

Massey currently owns operations in West Virginia, Virginia and Kentucky.

JSPL, with an annual revenue of more than $US2.1 billion, produces steel and power from its own captive coal and iron-ore operations.