India’s biggest steel producer JSW Steel intends to bid for a 20-40% stake in Elk Valley Resources Ltd., the metallurgical coal unit of Canadian-based Teck Resources, reported Bloomberg News.
Chairman Sajjan Jindal said JSW, along with some Japanese and South Korean mills, could offer a combined $8 billion for a stake in the asset.
He told Bloomberg that Teck produced a higher quality metallurgical coal than what is available in India and said the unit “could be a very strategic fit for us, therefore we are taking a significant stake.”
Teck is the world’s second-largest seaborne exporter of steelmaking coal, with four operations in Western Canada and significant high-quality steelmaking coal reserves.
Source: Reuters