JSW Steel preparing to buy Australian coal mine at a valuation of 1 billion dollars
Whitehaven is selling part of its stake in the Blackwater mine in Central Queensland as it looks for joint venture partners around the world
JSW Steel is in talks to buy 20 per cent stake in the coal mine owned by Australian company Whitehaven Coal. The value of this deal is about 1 billion dollars.
If the talks are successful, the transaction will be completed in early March, a source close to the matter said.
Whitehaven is selling part of its stake in the Blackwater mine in Central Queensland as it looks for joint venture partners around the world.
According to the source, its talks with Sajjan Jindal-owned JSW Steel are at a valuation with a price band of $800 million to $1 billion.
The transaction will be led by JSW Steel, the Indian listed unit of JSW Group.
However, JSW Steel spokesperson refused to comment on this matter. In the year 2023 also, JSW Group had tried to acquire 40 percent stake in the metallurgical coal unit of Canada’s Teck Resources.
For this deal, JSW Steel was to invest up to $ 2 billion, but the talks were stalled due to valuation.
JSW Steel plans to expand its capacity to 50 million tonnes per annum by 2030, using the acquisition to secure raw materials for its target.
The company is exploring high quality coal mines in Australia and other places in the world.
