The Indian company JSW Steel, one of the world's leading steel producers, has announced the acquisition of the mining company Minas de Revuboe (MDR), in Mozambique, for 73.75 million dollars (approximately 4.6 billion meticais). The purchase aims to secure the supply of high-quality coking coal, essential for steel production.
According to the statement released by the company, the acquisition will be carried out by its subsidiary JSW Natural Resources Limited, which will take a 92.19% stake in MDR, in addition to acquiring the shareholder loans. The transaction will give JSW Steel access to more than 800 million metric tonnes of premium-quality coking coal reserves, located in the Moatize Basin, in Tete province.
Completion of the deal is still subject to approval by Mozambique's Ministry of Mineral Resources and Energy, among other necessary authorisations. This strategic move is intended to secure a stable, high-quality source of coking coal, a crucial element in maintaining JSW Steel's competitiveness in the global steel market.
Indian steelmakers consume around 70 million metric tonnes of coking coal a year, of which approximately 85% is imported because of the country's insufficient supply of the resource. The main sources of these imports are Australia, Indonesia, Russia, the USA and Canada. In recent months, rising metallurgical coal prices have negatively affected the financial results of steel companies, making this acquisition particularly relevant.
With this move, JSW Steel strengthens its market position, securing access to essential resources and mitigating the impact of volatile raw-material prices.
