The company is also expanding its raw material base in India
India’s JSW Steel is considering acquiring foreign iron ore and coking coal assets, while prioritizing the expansion of its raw material base domestically. SteelOrbis informs about it.
The company is considering acquiring assets in Canada and Australia to align its raw material supply chain with plans to expand Indian production capacity from 28 million to 50 million tonnes of steel per year by 2030.
This year, JSW Steel has successfully acquired six iron ore blocks and two coking coal blocks in competitive bidding in India, the latter of which it plans to commission within the next two years.
India meets 85% of its coking coal needs through imports from Australia, South Africa, Canada and the US, JSW Steel gets 60% of this raw material from foreign supplies.
As GMK Center reported earlier, according to media reports, JSW Steel is considering possibility of purchase up to 20% of the shares in the Canadian steelmaking coal business Teck Resources. The company is in talks with banks about potential financing for the acquisition, which could amount to about $2 billion. Negotiations are at an early stage, so the price and other details could change.
Also, JSW Steel in Q1 FY2023/2024 (April-June 2023) increased consolidated sales of steel increased by 27.2% compared to the same period last year – up to 5.71 million tons. Consolidated steel production in this period amounted to 6.43 million tons, which is 11% more y/y, but 2 % less q/q.