JSW Steel's board has approved the acquisition of additional economic interest in M Res NSW HCC Pty Ltd through its subsidiary JSW Steel (Netherlands) B.V. for an aggregate consideration of USD 60 million. Following the transaction, the company will hold an 83.33% economic interest in M Res NSW, increasing its effective interest in Illawarra Metallurgical Coal to 30%.
The transaction will be executed through a combination of primary subscription and secondary purchase of non-voting Class B shares in M Res NSW. Consequently, M Res NSW will increase its holding in Golden M NSW Pty Ltd to 36%. This will result in JSW Steel increasing its effective economic interest in Illawarra Metallurgical Coal to 30% from the current 20%.
Additionally, the terms of JSW Steel's existing investment in M Res NSW require it to invest up to US$ 50 million in 2030 to fund deferred consideration payable to South32. With the increased stake, this obligation will increase to up to US$ 75 million.
Illawarra Metallurgical Coal’s operations include the Appin and Dendrobium coking coal mines and associated infrastructure in New South Wales, Australia, with combined marketable coal reserves of approximately 95 million tons as of December 2024.
Raw material security and cost optimization remain a key strategic priority for JSW Steel. The company, through its subsidiary, has a market-linked offtake contract with Illawarra Metallurgical Coal for the purchase of hard coking coal in proportion to its economic interest in Illawarra Metallurgical Coal. The transaction will lead to increased offtake rights (of 30%) being available to the company in proportion to its increased economic interest.
The board meeting commenced at 02:00 pm and concluded at 02:40 pm on September 17, 2025.
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