India's JSW Steel plans to acquire $120 million stake in Australian company to expand its coal reserves

India's leading steelmaker, JSW Steel (JSTL.NS), announced on August 12 that it will acquire a 67% stake in the Australian private company M Res NSW HCC for US$120 million as part of its strategy to increase its coal reserves. M Res NSW HCC is affiliated with the coal trading firm M Resources. Kunal Kothari, a research analyst at Centrum Broking, noted that by securing indirect equity ownership of these coking coal mines, JSW Steel will be able to source coal at market-linked prices. With this acquisition, JSW Steel will gain a stake in coal mines located in southern Australia, which have reserves of 99 million metric tonnes and an annual production capacity of 6.5 million tonnes. The company plans to make the purchase through its Netherlands-based subsidiary and will invest an additional $50 million by 2023. In a statement, JSW emphasized that securing raw materials and optimizing costs are strategic priorities for the company, and this deal is a significant step towards achieving those goals.