JSW Steel Strengthens Global Footprint With $120 Mn Stake In Australian Mining Venture

JSW Steel is investing in the Australian mining sector to secure essential raw materials and optimise operational costs. The company’s Board of Directors has approved the acquisition of a 66.67 per cent economic interest in M Res NSW HCC Pty Ltd. 

The investment is valued at USD 120 million and will be executed through JSW Steel’s wholly-owned subsidiary, JSW Steel (Netherlands) B.V., by subscribing to non-voting Class B shares.

M Res NSW, owned by Matthew Latimore, the founder of Australia-based mining and trading firm M Resources Pty Ltd, holds a 30 per cent stake in Golden M NSW Pty Ltd. Golden M is expected to become the ultimate owner of Illawarra Coal Holdings Pty Ltd, which operates the Appin and Dendrobium coking coal mines in New South Wales. 

These mines are critical assets and hold approximately 99 million tonne of prime hard coking coal reserves, with an average annual production of 6.5 million tonne over the last five years.

The acquisition points to JSW Steel’s intent to securing long-term access to high-quality raw materials, essential for sustaining its competitive edge in the global market. 

Additionally, JSW Steel has pledged a further USD 50 million investment in M Res NSW to cover deferred consideration payable by 2030. This move not only enhances JSW Steel’s supply chain but also strengthens its position in the global steel industry. 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.