JSW Steel Invests in M Resources’ Subsidiary with New Stake Purchase

M Resources has revealed that JSW Steel will acquire up to a 66.67% economic interest in M RES HCC (NSW) Pty Ltd (“M Res NSW”). M Res NSW holds a 30% stake in Golden M NSW Pty Ltd, which is set to acquire the Illawarra coal assets from South32. JSW Steel's acquisition will be executed through a subscription to non-voting Class B shares, involving an initial investment of US$120 million via its wholly owned subsidiary, JSW Steel (Netherlands) B.V. Additionally, JSW is required to invest another US$50 million in M Res NSW to fulfill its deferred consideration obligation due in 2030.

As part of JSW Steel's investment, the company will secure a proportional share of the metallurgical coal exports generated by the joint venture. This allocation aligns with their significant financial commitment and positions JSW Steel to benefit from the future revenue streams associated with the coal assets. Despite the substantial investment by JSW Steel, M Resources will maintain its voting rights and retain management control over the joint venture. This arrangement ensures that M Resources continues to steer the strategic direction and operational oversight of the venture. Additionally, Matt Latimore has been appointed to the board of GM3, bringing valuable expertise to the governance of the joint venture.

Matthew Latimore, Chairman and CEO of M Resources, expressed enthusiasm about the upcoming acquisition from South32 in partnership with GEAR, which is set to finalize in September. He highlighted the significance of the collaboration with JSW, a major global steel mill, in addressing India's increasing demand for metallurgical coal. Latimore affirmed that the acquisition is unconditional and will proceed as planned, emphasizing its strategic importance in supporting investment and meeting market needs.

M Resources, a Brisbane-based industry leader, specializes in steelmaking raw materials and operates a global network spanning Asia, Europe, North and South America, and Australia. With a robust portfolio encompassing coal mining, rail logistics through OneRail, underground mining services via Metarock, and strategic investments in the mining sector, M Resources delivers end-to-end solutions to the global steel industry. The company's recent acquisition of Illawarra Coal Holdings further solidifies its position as a dominant player in the Australian market.

JSW Steel, the cornerstone of the JSW Group, stands as a titan in India's steel industry, renowned for operational excellence and product quality. As part of a diversified conglomerate with interests in energy, infrastructure, cement, paints, sports, and venture capital, JSW Steel benefits from a robust ecosystem and strategic synergies. Cultivating a strong corporate culture, the company has evolved from a single unit to a global steel powerhouse with a 28.5 MTPA capacity across India and the USA. With a clear vision for expansion, JSW Steel is aggressively pursuing growth opportunities to reach a 38.5 MTPA capacity by FY25, solidifying its position as a dominant force in the global steel market.