JSW Steel Limited (“JSW Steel” or “the Company”) has announced that it has entered into an agreement, through its subsidiary, to acquire an economic interest of up to 66.67% in M Res NSW HCC Pty Ltd (“M Res NSW”).
M Res NSW is owned by Matthew Latimore, who owns M Resources Pty Ltd (“M Resources”), an international mining, investment, marketing, and trading company based in Australia.
M Res NSW holds a 30% interest in Golden M NSW Pty Ltd (“Golden M”), with the remaining 70% held by Golden Energy and Resources Pte Ltd (“GEAR”) through its subsidiary. Golden M is expected to become the ultimate owner of Illawarra Coal Holdings Pty Ltd (“Illawarra Metallurgical Coal”), whose assets include the Appin and Dendrobium coking coal mines in New South Wales, Australia. These mines collectively have a total marketable reserve of approximately 99 million tons of prime hard coking coal, having produced an average of around 6.5 million tons per annum over the past five years.
The acquisition will be completed through a subscription to non-voting Class B shares in M Res NSW for an upfront investment of USD 120 million. Further, the terms of the investment require JSW Steel to further infuse US$ 50 million in M Res NSW towards the deferred consideration payable in 2030.
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.
The acquisition aligns with JSW Steel’s long-term strategic goals and secures a stable supply of high-quality prime hard coking coal, which is critical for steel production. Illawarra Metallurgical Coal is a premium hard coking coal operating mine. A secure supply of this high-quality coking coal allows for superior blast furnace operations and provides JSW Steel with coal blending options. Given the limited visibility of additional capacity premium hard coking coal assets, this acquisition is an important step in securing raw material for JSW Steel.
