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JSW may spin off foreign assets to aid expansion

14 Oct 2010 Evaluate

JSW Steel Ltd, India’s third largest producer, is considering putting its overseas coal and iron ore assets into a unit for a share sale to fund expansion. The unit would control coal and iron ore mines in the US and Chile, as well as an exploration business in Mozambique. JSW may list the unit in an overseas exchange.

 

JSW Steel, Tata Steel Ltd. and Steel Authority of India Ltd, the nation’s largest producers, are looking to buy mines in Australia, the US and Africa, to feed furnaces as demand increases. A raw material spinoff by an Indian company would be unusual and its success would depend on the asset location.

 

JSW Steel bought seven coking coal mines in May in the US with reserves of about 123 million metric tons. In Chile, the company’s Bellavista iron ore mines, acquired in 2008, are likely to start production by December. The company’s Mozambique unit is exploring for coal and iron ore resources.

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JSW Steel Share Price

1239.90 24.35 (2.00%)
17-Apr-2026 16:59 View Price Chart
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Company Name CMP
Tata Steel 212.05
JSW Steel 1239.90
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