JSW Steel Limited made a strategic investment in the Australian mining industry. In an exchange filing, the firm stated that its Board of Directors had approved the purchase of up to 66.67 per cent economic interest in M Res NSW HCC Pty Ltd (“M Res NSW”).
JSW Steel (Netherlands) B.V., will carry out the US$ 120 million investment by subscribing to non-voting Class B shares, according to the firm. For JSW Steel, securing raw resources and cutting costs are top strategic concerns, and this acquisition is a big step.
M Res NSW is a fully owned subsidiary of M Resources Pty Ltd, an Australian International mining and trade company owned by Matthew Latimore, and they hold 30 per cent of shares in Golden M NSW Pty Ltd. Illawarra Coal Holdings Pty Ltd (“Illawarra Metallurgical Coal”), the company that runs the Appin and Dendrobium coking coal mines in New South Wales, Australia, is reportedly owned by Golden M.
With total marketable reserves of over 99 million tonnes of prime hard coking coal and an average annual production of 6.5 million tons over the previous five years, these mines are valuable assets.
In addition to the initial investment, JSW Steel has committed to a further US$ 50 million investment in M Res NSW to fulfil its obligation towards deferred consideration payable in 2030, the company said.
The remaining 70 per cent interest in Golden M is held by Golden Investments (Australia) III Pte Ltd, a subsidiary of Golden Energy and Resources Pte Ltd (“GEAR”).
