In a significant move to bolster its international presence, JSW Steel Limited on Monday announced a strategic investment in the Australian mining sector. The company’s Board of Directors, in a meeting held on August 12, 2024, approved the acquisition of up to 66.67% economic interest in M Res NSW HCC Pty Ltd (“M Res NSW”), the company said in an exchange filing.
The investment, amounting to US$ 120 million, will be executed through JSW Steel‘s wholly-owned subsidiary, JSW Steel (Netherlands) B.V., by subscribing to non-voting Class B shares, the company said.
Securing raw materials and optimising costs are critical strategic priorities for JSW Steel, and this acquisition marks a significant step toward achieving these goals.
M Res NSW, owned by Matthew Latimore—founder of M Resources Pty Ltd, a prominent international mining and trading firm based in Australia—holds a 30% stake in Golden M NSW Pty Ltd (“Golden M”). Golden M is the proposed ultimate owner of Illawarra Coal Holdings Pty Ltd (“Illawarra Metallurgical Coal”), which operates the Appin and Dendrobium coking coal mines in New South Wales, Australia.
These mines are key assets, with total marketable reserves of approximately 99 million tons of prime hard coking coal and an average production of 6.5 million tons per annum over the past five years.
In addition to the initial investment, JSW Steel has committed to a further US$ 50 million investment in M Res NSW to fulfill its obligation towards deferred consideration payable in 2030, the company said.
The remaining 70% interest in Golden M is held by Golden Investments (Australia) III Pte Ltd, a subsidiary of Golden Energy and Resources Pte Ltd (“GEAR”).