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JSW Steel Ltd. has announced a major investment decision, revealing plans to acquire a 66.67% economic interest in M Res NSW. The acquisition, valued at $120 million (approximately ₹1,007.3 crore), was approved by the company’s board on August 12. The investment will be executed through its wholly owned subsidiary, JSW Steel (Netherlands) B.V., which will subscribe to non-voting Class B shares in M Res NSW. Additionally, JSW Steel intends to invest an extra $50 million (around ₹419 crore) by 2030 to meet obligations related to deferred consideration.
The primary goal of this acquisition is to enhance raw material security and optimize costs for JSW Steel. M Res NSW, which is owned by Matther Latimore, holds a 30% stake in Golden M NSW Pty Ltd. This company owns Illawarra Coal Holdings, which manages the Appin and Dendrobium coking coal mines in New South Wales, Australia. These mines possess a substantial marketable reserve of roughly 99 million metric tonnes of prime hard coking coal and have averaged a production rate of 6.5 million tonnes per annum over the past five years.
Golden M NSW’s 70% stake is held by Golden Investments (Australia) III Pte Ltd., which is a wholly-owned subsidiary of Golden Energy and Resources Pte. Ltd. After the acquisition, JSW Steel plans to establish a market-linked offtake agreement with Illawarra Metallurgical Coal. This contract will facilitate the purchase of hard-coking coal in alignment with JSW Steel’s indirect economic stake in Golden M NSW and its related entities.
The strategic acquisition aligns with JSW Steel’s objectives of securing critical raw materials and managing production costs effectively. The investment is expected to strengthen the company’s supply chain and bolster its position in the global steel market.