Indian flats maker JSW Steel has announced the acquisition of eight mines in the Atacama region in northern Chile at a total cost of $52 million through its wholly-owned Dutch subsidiary for the exploration and exploitation of magnetite iron ore deposits.
The mines in question extend over an area of about 1,200 hectares.
Commenting on the acquisition, Jindal JSW Steel vice chairman Sajjan Jindal said, "These mines are expected to have good quality magnetite iron ore deposits located near the Pacific coast facilitating shipment of ore at competitive cost. It acts as a natural hedge against high cost iron ore procured from third parties in India once these mines are operationalized."
Mr Jindal added that the company is negotiating a joint venture to develop various iron ore mining projects in South America, which he is hopeful of concluding in the near future.
As previously reported, JSW Steel has been actively pursuing opportunities to increase its iron ore and coal sources both in India and overseas for its steelmaking operations.