In a major move to enhance its global operations, JSW Steel Limited declared on Monday its strategic investment in Australia’s mining industry. During a meeting on August 12, 2024, the Board of Directors gave the green light for acquiring up to a 66.67% economic interest in M Res NSW HCC Pty Ltd (“M Res NSW”), as noted in an official exchange filing.
This US$ 120 million investment will be facilitated through JSW Steel’s fully-owned subsidiary, JSW Steel (Netherlands) B.V., by purchasing non-voting Class B shares, according to the company.
M Res NSW is led by Matthew Latimore, the founder of M Resources Pty Ltd, a distinguished mining and trading company in Australia. M Res NSW holds a 30% stake in Golden M NSW Pty Ltd (“Golden M”), which is set to become the ultimate owner of Illawarra Coal Holdings Pty Ltd (“Illawarra Metallurgical Coal”). This company manages the Appin and Dendrobium coking coal mines in New South Wales, Australia.
These mines are significant assets, boasting total marketable reserves of about 99 million tons of premium hard coking coal and averaging 6.5 million tons of production annually over the past five years.
Besides the initial investment, JSW Steel has pledged an additional US$ 50 million to M Res NSW to meet its deferred payment obligation due in 2030, the company added.
Golden Investments (Australia) III Pte Ltd, a subsidiary of Golden Energy and Resources Pte Ltd (“GEAR”), retains the remaining 70% interest in Golden M.
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