NEW DELHI: JSW Steel on Monday announced the acquisition of up to 66.67% in the Australian mining company - M Res NSW - through its wholly-owned subsidiary JSW Steel (Netherlands) B.V. This effort is seen as the steel major’s effort to secure raw material availability required to support its ambitious expansion plans.
“…we inform you that the Board of Directors of JSW Steel at its meeting held on August 12, 2024, has approved acquisition of an economic interest of up to 66.67% in M Res NSW HCC Pty Ltd (“M Res NSW”) by way of subscription to non-voting Class B shares, for an investment of US$ 120 million via the company’s’ wholly-owned subsidiary JSW Steel (Netherlands) B.V.” said JSW Steel in an exchange filing. The company stated that raw material security and cost optimisation remain a key strategic priority for them and this acquisition is a step forward in achieving those objectives.
The terms of investment require JSW Steel to further invest $50 million in M Res NSW to fund its obligation towards the deferred consideration payable in 2030.
The acquisition by the company comes months after its board approving acquisition of Minas de Revuboe Limitada (MDR), which owns a pre-development stage premium hard coking coal mine project in the Moatize Basin of Tete Province in Mozambique. Given that JSW Steel has a target of achieving a steelmaking capacity of 50 mt by 2030, it has been securing its raw materials, especially the important cocking coal, needs.