JSW Steel board approves $120M investment in Australian firm M Res NSW

JSW Steel on Monday said its board has approved a proposal to acquire up to 66.67% economic interest in Australian company M Res NSW HCC Pty Ltd for $120 million.

The investment would be made through its wholly-owned subsidiary JSW Steel (Netherlands) B.V, the steel major said in an exchange filing.

"The Board of Directors on August 12 approved the acquisition of an economic interest of up to 66.67% in M Res NSW by way of subscription to non-voting Class B shares, for an investment of $120 million," it said.

The terms of the investment require the company to further invest $50 million in M Res NSW to fund its obligation towards the deferred consideration payable in 2030.

M Res NSW is owned by Matthew Latimore, the owner of M Resources Pty Ltd (M Resources), an international mining, investment, marketing and trading company, with its headquarters in Australia.

It owns 30% interest in Golden M NSW Pty Ltd, the proposed owner of Illawarra Coal Holdings Pty Ltd, whose operations consist of the Appin and Dendrobium coking coal mines and associated infrastructure in New South Wales, Australia.

These mines have total marketable reserves of 99 million tonnes of prime hard coking coal and have produced on an average 6.5 MTPA in the past 5 years.

The remaining 70% interest in Golden M is held by Golden Investments (Australia) III Pte Ltd, a wholly-owned subsidiary of Golden Energy and Resources Pte Ltd (GEAR).