New Delhi, India, 7 Dec – JSW Steel is due to sell a coal mine in Mozambique to JSW Energy as the mine has become commercially unfeasible for the steel producer, said the chief executive of the JSW Group, Sajjan Jindal.
Indian newspaper, The Economic Times cited a source close to the process as saying that the expected transaction would involve around 3 billion rupees, or around US$64.6 million.
JSW Steel acquired the 200 million-tonne block in Mozambique a few years ago, via its subsidiary JSW Natural Resources Mozambique with a view to mining coke coal to feed its steel works in Vijayanagar, Karnataka.
However initial mining showed that the block mainly contained thermal coal rather than coke.
“Around 80 percent of the coal in the block is thermal and thus we are going to value it and sell it to JSW Energy, and JSW Steel will keep the remaining 20 percent of the coke coal to feed its steel works,” Jindal said. (macauhub)