India’s JSW Steel Limited has announced the acquisition of a 66.67 percent stake in Australian coking coal miner M Res NSW HCC Pty Ltd (M Res NSW) in a bid to boost its raw material security, according to a company regulatory filing on Tuesday, August 13.
JSW Steel Limited board has approved the acquisition of an economic interest of up to 66.67 percent in M Res NSW by way of subscription to non-voting Class-B shares, totaling an investment of $120 million, JSW Steel said. It will also commit to an additional payout of $50 million by 2030 to cover part of a deferred payment to be made by the miner, it added.
In its regulatory filing, the company mentioned that raw material security and cost optimization were key strategic priorities for JSW Steel and that this acquisition is a step forward in achieving the objectives.
M Res NSW is owned by Matthew Latimore, owner of M Resources Pty Ltd (M Resources), an international mining, investment, marketing and trading company, with headquarters in Australia.
M Res NSW owns a 30 percent interest in Golden M NSW Pty Ltd (Golden M), the proposed ultimate owner of Illawarra Coal Holdings Pty Ltd (Illawarra Metallurgical Coal), whose operations consist of the Appin and Dendrobium coking coal mines and associated infrastructure in New South Wales, Australia.
As part of the post-acquisition strategy, JSW Steel, either directly or through its subsidiaries, intends to enter into a market-linked offtake contract with Illawarra Metallurgical Coal for the purchase of coking coal, proportionate to its indirect economic interest in Golden M and its subsidiaries, JSW Steel said.
