JSW Steel Ltd has completed the acquisition of coking coal mining assets in the US. The mines are located in West Virginia and have total resources of 123 million tonnes. The financial details were not disclosed.
The company also did not disclose the number of mines it acquired in this transaction, however, it said, in the statement, that one of these mines are operational and the company will soon start operations on the others. The remaining mines will be operational in the next few months. The mines also have railway load out and barge facility attached to them.
The company is targeting to produce 1 million tonnes of coal in the first year of operation starting from September 2010 that will go up to 3 million tonnes in the next three years.
JSW Steel said, the company has estimated the requirement of around 5 million tonnes coking coal annually, and the US mines will meet around 20-35% of its requirements. The company is also looking at further acquisitions to enhance the integration of coking coal, the statement added.
Apart from scouting for overseas buys, JSW Steel is pursuing domestic acquisitions as well. In April, DNA has reported that the Mumbai-based firm is looking to buy a controlling stake in Bramhani Industries Ltd (BIL), a company floated by Karnataka tourism minister G Janardhan Reddy. Bramhani has been working on setting up an integrated steel plant in Kadapa, with a total production capacity of 4 million tonnes.