JSW Steel raises stake in Australian coal venture to 83% for $60 million

JSW Steel will purchase an additional economic interest in M Res NSW for $60 million through its subsidiary JSW Steel (Netherlands), effectively increasing its stake in Australia-based Illawarra Metallurgical Coal, the company said in an exchange filing on Wednesday.

This will allow JSW Steel to purchase additional coking coal from Illawarra Metallurgical Coal.

"Raw material security and cost optimisation remain a key strategic priority for the company," it said in its filing.JSW Steel's market-linked contract with Illawarra Metallurgical Coal allows it to purchase hard coking coal in proportion to its economic interest in the company.The steel maker had already acquired a 66.67 per cent economic interest in M Res NSW last year. With its additional stake buy in the company, it will hold an 83.33 per cent stake in the company.