This acquisition of a 92% equity stake in Minas de Revuboe (MDR) and associated loans worth $73.7 million grants JSW Steel access to over 800 million metric tonnes of premium hard coking coal reserves.
This strategic move emphasizes JSW Steel's commitment to bolstering its raw material supply chain and reducing reliance on external suppliers. Additionally, the company is considering further investments in coal mining ventures, such as a potential 20% stake in Australia's Blackwater coal mine.
Last year, JSW Steel's effort to acquire up to 75% of Canada's Teck Resources' metallurgical coal business was unsuccessful. Due to a scarcity of high-quality domestic coking coal, Indian steel mills heavily depend on imports to meet their coking coal requirements. According to customs data from 2023, India imported around 55 million tonnes of coking coal, with JSW Steel contributing roughly 23% of the total imports.
Comments
No comment yet.