JSW Steel is looking to pick up a 20-40% stake in the metallurgical coal unit of Canada’s Teck Resources, Bloomberg News reported on Friday, citing the Indian steel producer’s chairman, Sajjan Jindal.
JSW, along with Japanese and Korean mills, plans to buy a stake in Teck’s Elk Valley Resources, with a combined offer valuing the unit at $8 billion, Jindal told the publication in an interview.
JSW Steel and Teck did not immediately respond to Reuters’ requests for comment.
Sourcing metallurgical coal, a key raw material for steel production, is critical for JSW to meet its capacity target for India of 50 MTPA by the end of this decade.
Jindal had said in the company’s annual report for last fiscal that it would add 9 MTPA of new capacity in the next two years, taking its total capacity in India to 37 MTPA by 2024-2025.
He told Bloomberg that Teck produced a higher quality of the raw material than what is available in India and deemed the unit “could be a very strategic fit for us, therefore we are taking a significant stake.
First Published: Aug 25 2023 | 6:23 PM IST