JSW Steel announced on August 12 that it has approved an offer to acquire 66.67% of the shares of Australian mining company M Res NSW HCC Pty Ltd for USD 120 million as part of its strategy to increase its coal reserves. This strategic investment will be made through JSW Steel's wholly-owned subsidiary JSW Steel (Netherlands) B.V. after September.
Market experts said that this investment will allow the company to ensure a steady supply of coal even during periods of sluggish coal supply.
The deal will give JSW Steel ownership of coal mines in South Australia with total reserves of 99 million tons and an annual production capacity of 6.5 million tons.
JSW Steel stated that ensuring raw material security and optimizing costs are among the company's top strategic priorities and that this agreement is an important step in achieving these goals.
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