.gif?width=220&height=200&mediaprotectionhash=b13da841472e6e7ed500ee35df2a350aaf53d75246118b33ea2095cc7e9a3fc4&ext=.gif)
JSW Steel Acquires Coking Coal Mine in U.S.
06/01/2010 - JSW Steel Ltd. has completed the acquisition of certain coking coal mining concessions in the U.S., following Board approval in March. The mines, located in West Virginia, have total resources of 123 million tonnes.
JSW Steel Ltd. has completed the acquisition of certain coking coal mining concessions in the U.S., following Board approval in March. The mines, located in West Virginia, have total resources of 123 million tonnes. The reserves are estimated to be around 45 million tonnes on part of the area where drilling was already done.
The company carried out due diligence on title, details of seams, resource estimates and quality, valuation, legal and financial matters. This acquisition is unique, according to JSW Steel, in that it has its railway load out and barge facility while one of the mines is operating.
The company applied for new permits to put into operation immediately some of the mines; they are expected in the next few months.
The mine is expected to produce 1 million tonnes of coal in the first year starting from September 2010 and go up to 3 million tonnes in the third year of operation. The total coking coal requirement of JSW Steel is estimated at 5 million tonnes per annum at current capacity.
This integration provides a benefit, according to JSW Steel, even after factoring in the higher freight from the U.S. to India. The company says it is actively looking to acquire additional coal mines to enhance the integration of coking coal.
JSW Steel Ltd., belonging to JSW group, part of the O P Jindal Group, is one of the lowest-cost steel producers in the world. JSW Steel is engaged in manufacture of flat and long products including hot and cold rolled coils, galvanized and color-coated products, auto grade / white goods grade CRCA steel, bars and rods. Incorporated in 1994, JSW Steel has the largest galvanizing and color coating production capacity in the country and is the largest exporter of galvanized products with presence in more than 108 countries across five continents.
