JSW Steel boosts stake and offtake rights in metallurgical coal asset

JSW Steel, through its wholly-owned subsidiary JSW Steel (Netherlands) B.V., has increased its economic interest in M Res NSW HCC Pty Ltd ("M Res NSW") to 83.33% from 66.67%. This acquisition involved two transactions: the purchase of non-voting Class B shares in M Res NSW for $24 million and a subscription to additional non-voting Class B shares issued by M Res NSW for $36 million.

The $36 million proceeds were utilized by M Res NSW to acquire an additional 6% shareholding in Golden M NSW Pty Ltd ("Golden M"), raising M Res NSW's total shareholding in Golden M to 36% from 30%. Golden M, through its subsidiaries, fully owns Illawarra Coal Holdings Pty Ltd ("Illawarra Metallurgical Coal").

As a direct result of these transactions, JSW Steel's effective economic interest in Illawarra Metallurgical Coal has climbed to 30%, up from 20%. This increased stake also grants the company enhanced offtake rights, now at 30%, proportionate to its greater effective economic interest.