JSW Steel will invest $120 million (₹1,000 crore) to acquire 66.67 per cent in Australian mining company M Res NSW HCC Pty (M Res NSW)

The investment will be made via the company’s wholly-owned subsidiary, JSW Steel (Netherlands) BV, said the company in an exchange filing after its board meeting on Monday.

As part of the investment agreement, JSW Steel is also committed to investing an additional $50 million by 2030 to cover the company’s deferred payment obligations.

Once the acquisition is completed, JSW Steel will enter into a market-linked offtake contract with Illawarra Metallurgical Coal for the purchase of hard coking coal in proportion to its indirect economic interest in Golden M and its subsidiaries. Thus, the investment aligns with JSW Steel’s strategy to secure high-quality raw materials and optimize its cost structure.

“Raw material security and cost optimisation remain a key strategic priority for the company and this acquisition is a step forward in achieving those objectives,” the company added.

In May, JSW Steel acquired a 92 per cent stake in Mozambique-based mining company Minas de Revuboe (MDR) for $74 million (₹622 crore). MDR owns 800 tonnes of premium hard-coking coal reserves in Mozambique.

Domestic steel companies depend heavily on imported coking coal sourced largely from Australia, Russia and the United States. Any disruptions in the supply chain expose them to significant price increases and operational challenges.

Sajjan Jindal-led JSW Steel’s net profit in the June quarter was down 64 per cent at ₹867 crore against ₹2,428 crore logged in the same period last year, on the back of lower realisation. Income was up one per cent at ₹43,107 crore (₹42,544 crore).

EBITDA was down at ₹5,510 crore (₹7,046 crore). Net sales realisations in India were down 5 per cent y-on-y on lower domestic steel prices. Net Debt of the company increased to ₹80,199 crore against ₹73,916 crore as of March-end.

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