May 23, 2013, 10.54 PM | Source: PTI

JSW Steel eyes coal mines in Africa, US and Canada

JSW Steel Ltd is looking to acquire coal mines in Africa, US and Canada, a senior company official said today.

JSW Steel Ltd is looking to acquire coal mines in Africa, US and Canada, a senior company official said on Thursday.

"We have a strong balance sheet and we are looking for acquisition of coking coal mines in Africa, US and Canada," JSW Steel joint managing director Seshagiri Rao said .

The company is looking at acquiring iron ore and coal mines in both India and abroad as it looks to increase self-sufficiency in feeding its steel plants. "As we expand aggressively, we need to own mines to bring down costs," Rao said.

"We are open to acquiring mines in overseas. There are huge opportunities as commodity cycle is on reverse curve. We are keeping our eyes and ears open," JSW Chairman and Managing Director Sajjan Jindal said.

Also Read: JSW Steel confident of 9-10% growth in FY14 crude steel

However, the company is cautious on acquisitions abroad as its past experience was not positive, Jindal said.

During FY13, the company operation in Chile iron ore mine continued to be profitable, while the production in coal mines in the US remained subdued due to delay in obtaining permits. In the domestic market, the company plans to bid for iron ore mines in Karnataka after Supreme Court lifted the ban.

"Our strategy is very clear - of having our own raw material and we must have our own captive mines. JSW is doing its homework and aggressively bid for 18 mines in C category in Karnataka," Jindal said.

"Out of 6 MT captive mines auctioned, we are aiming for a lion's share," he said.

The company made a huge investment in Karnataka due to iron ore mines, but the state government failed in its obligation of allotting the mines to the company, Jindal said and called for a transparent policy.

JSW Steel stock price

On November 30, 2015, at 15:27 hrs JSW Steel was quoting at Rs 904.90, up Rs 33.70, or 3.87 percent. The 52-week high of the share was Rs 1220.90 and the 52-week low was Rs 801.00.

The company's trailing 12-month (TTM) EPS was at Rs 36.21 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 24.99. The latest book value of the company is Rs 1030.07 per share. At current value, the price-to-book value of the company is 0.88.

Set email alert for


video of the day

Mkt resilient at current level; bullish auto: ICICI Pru AMC

Explore Moneycontrol

Copyright © Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of is prohibited.