JSW In Race To Buy Coal Mines In Australia, Shares Climb

Conglomerate JSW Group is in contention to buy two coking coal mines from the world’s largest miner BHP Group in a deal worth potentially $1.5 billion to $2 billion (₹12,423 crore to ₹16,564.3 crore) as it looks to power its steel-producing blast furnaces.

What Happened? The India-based conglomerate is going up against the likes of global steel giants Nippon Steel, Posco, and Glencore, as well as several private equity groups, as it looks to buy two BHP mines in Queensland, the Economic Times reported, citing sources. the mines have a combined capacity of 20 million tonnes per annum (MTPA).

Non-binding indicative bids are set to arrive in a few weeks, the sources told the business daily.

See Also: RBI Anticipates Return Of Majority ₹2,000 Notes By September End, Assures Ample Currency Stock

While BHP is looking to offload the mines amid a drop in half-year profit, a coal royalty hike in the state, and environmental concerns, JSW Steel, the Indian firm’s flagship business, is looking to purchase coking coal from abroad as there isn’t enough coking coal available domestically to serve its steelmaking furnaces.

JSW Steel on Friday reported that its quarterly consolidated net profit went up 11.9% to ₹3,741 crore, year on year. Net sales for the quarter grew 0.14% to ₹46,962 crore. It also clocked its highest-ever crude steel production at 6.58 million tonnes, up 6.8% sequentially.

Price Action: JSW Group shares were up 1.69% at ₹705.60 in afternoon trade.

Read Next: Why Adani Group Stocks Are Skyrocketing Today

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesNewsAsset SalesMarketsBHPGlencoreJSW GroupJSW SteelNippon SteelPosco