Shares of JSW Steel were trading 1% higher on 13 August after the board of directors of the company had given approval to acquire a 66.67% stake in  M Res NSW HCC Pty Ltd for a total consideration of $120 million. 

The investment will be  made through the company’s wholly-owned subsidiary, JSW Steel (Netherlands) B.V., the company announced in an exchange filing.

The acquisition will include the subscription to non-voting Class B shares in M Res NSW, with JSW Steel committing an additional $50 million to cover the company’s deferred payment obligations due in 2030.

M Res NSW, owned by Matthew Latimore of M Resources Pty Ltd, holds a 30% stake in Golden M NSW Pty Ltd, the future owner of Illawarra Coal Holdings Pty Ltd, which operates the Appin and Dendrobium coking coal mines in New South Wales. These mines have 99 million tonnes of high-quality coking coal reserves and have averaged 6.5 million tonnes of annual production over the past five years.

The remaining 70% stake in Golden M is owned by Golden Investments (Australia) III Pte Ltd, a subsidiary of Golden Energy and Resources Pte Ltd (GEAR).

JSW Steel intends to enter into a market-linked offtake agreement with Illawarra Metallurgical Coal to purchase coking coal after the acquisition.

As part of its long-term strategy to ensure a steady supply of prime hard coking coal—which is necessary for the production of steel—JSW Steel has acquired this property. Known for providing exceptional hard-coking coal, Illawarra Metallurgical Coal is set to enhance JSW Steel’s blast furnace operations and provide additional options for coal mixing.

By securing essential raw materials to support its manufacturing processes, JSW Steel is ensuring its competitiveness in the global steel market through this arrangement.

At 1:28 pm, the shares of JSW Steel shed all their early gains and were trading 0.38% lower at Rs 913.90 on NSE.

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