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JSW Steel buys 66.6% stake in Australia’s M Res NSW for $170 million
In a regulatory filing on Monday, the steel maker informed the exchange that its board has approved paying $120 million for a 66.67% stake in M Res NSW HCC Pty Ltd
JSW Steel Ltd has acquired a 66.67% stake in Australia coking coal miner M Res NSW HCC Pty Ltd for $120 million in a move that is likely to ensure a steady supply of raw material for steel production.
The investment will be made through JSW Steel’s subsidiary, JSW Steel (Netherlands) B.V., according to an exchange filing.
The acquisition includes subscription to non-voting Class B shares in M Res NSW, with a further $50 million investment required by JSW Steel to cover the company’s deferred consideration commitments, which are due in 2030.
“Raw material security and cost optimization remain a key strategic priority for the company and this acquisition is a step forward in achieving those objectives,” JSW Steel said in a statement. “These mines have total marketable reserves of 99 metric tons of prime hard coking coal and have produced on an average 6.5 metric tons per annum in the past five years.”
M Res Rsw is owned by Matthew Latimore, who founded M Resources Pty Ltd, a global mining, investment marketing, and trading company based in Australia.
M Res NSW HCC Pty also has a 30% stake in Golden M NSW Pty Ltd, the proposed owner of Illawarra Coal Holdings Pty Ltd, which owns Appin and Dendrobium coking coal mines.
JSW Steel has plans to enter into a market-linked offtake contract with Illawarra Metallurgical to purchase hard-coking coal in proportion to its indirect economic interest in Golden M and its subsidiaries.
In May, JSW Steel announced that it would buy a 92.19% stake, along with shareholder loans from Mozambique-based mining Minas de Revuboe (MDR), for $73.75 million. The steelmaker said the deal would provide access to more than 800 metric tons of premium hard-coking coal reserves in Mozambique.
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