JSW Steel to pick up 20%-40% stake in Teck’s coal unit: Report

JSW Metal is trying to decide up a 20 to 40% stake within the metallurgical coal unit of Canada’s Teck Sources, Bloomberg Information reported on Friday, citing the Indian metal producer’s chairman, Sajjan Jindal.

India’s greatest metal producer intends to bid for 20% to 40% of Elk Valley Sources Ltd., a unit of the Canadian firm, Jindal stated. JSW, together with some Japanese and South Korean mills, is planning to purchase a stake within the asset and a mixed supply may worth the unit at $8 billion, he stated.

Whereas JSW Metal didn’t instantly reply to a Reuters request for remark, Teck stated it doesn’t touch upon “market rumours or hypothesis”.

Sourcing metallurgical coal, a key uncooked materials for metal manufacturing, is crucial for JSW to satisfy its capability goal of fifty MTPA for India by the top of this decade.

Jindal had stated within the firm’s annual report for the final fiscal that it will add 9 MTPA of latest capability within the subsequent two years, taking its complete capability in India to 37 MTPA by 2024-2025.

He advised Bloomberg that Teck produced a better high quality of the uncooked materials than what is on the market in India and stated the unit “may very well be a really strategic match for us, subsequently we’re taking a big stake”.