Team Blitz India
NEW DELHI: JSW Steel will be competing with global steel major Japan’s Nippon Steel and other major bidders to acquire 20 per cent stake in Australia’s Blackwater coal mine from Whitehaven Coal.
Though companies are yet to decide on the final valuation, the deal is expected to be about $1 billion, said a source close to the development.
Whitehaven had acquired two coal mines — Blackwater and Daunia — from BHP last October for a cash consideration of $3.2 billion. The valuation of the overall deal could see major jump in few months after acquisition, if the deal for 20 per cent is closed at $1 billion, he added.
This is the second attempt by JSW Steel to acquire a mining asset overseas after pulling out of race to acquire a majority stake in the metallurgical coal business of Canada’s Teck Resources. The stake was later picked up by Swiss mining and trading major Glencore Plc.
Coking coal is a key input for steelmaking and domestic steel makers are completely dependent on imports from Australia, Russia and Canada. A few traces of coking coal found in India are of inferior quality and it remains largely unexplored.
