JSW Steel boosts stake in illawarra metallurgical coal for $60m

JSW Steel Limited announced its board of directors approved the acquisition of an additional economic interest in M Res NSW HCC Pty Ltd ("M Res NSW") for $60 million. This transaction, executed through its wholly-owned subsidiary JSW Steel (Netherlands) B.V., will increase JSW Steel’s effective economic interest in Illawarra Metallurgical Coal to 30% from the current 20%.

The acquisition involves a combination of primary subscription and secondary purchase of non-voting Class B shares in M Res NSW. Post-transaction, JSW Steel will hold an 83.33% economic interest in M Res NSW, which will in turn increase its holding in Golden M to 36%. This move enhances raw material security and optimizes costs for JSW Steel, bolstering its existing market-linked offtake contract.

The increased stake also adjusts JSW Steel's deferred consideration obligation to South32. The company will now be required to invest up to $75 million in M Res NSW by 2030, an increase from the previous $50 million, reflecting its expanded economic interest.