JSW Steel , one of India's leading steel producers, has announced a significant development in its subsidiary's operations. Mivaan Steels Limited, a wholly-owned subsidiary of JSW Steel, has emerged as the successful bidder in a recent coal block auction conducted by the Ministry of Coal, Government of India.

Auction Details

The auction was for the Rajgamar Dipside (South of Phulakdih Nala) Coal Block located in the state of Chhattisgarh. Mivaan Steels Limited secured the coal block with a winning bid of 31.50% of the National Coal Index (NCI) pricing. This percentage represents the highest final offer made by the company during the auction process.

Next Steps

Following this successful bid, JSW Steel has outlined the next steps for its subsidiary:

1. Obtain a Letter of Intent from the Ministry of Coal
2. Secure all necessary statutory clearances
3. Execute the Coal Mine Development and Production Agreement (CMDPA)
4. Initiate mining operations at the secured coal block

Implications for JSW Steel

This acquisition is expected to strengthen JSW Steel's raw material security, potentially leading to more efficient and cost-effective steel production. The company's move to secure its own coal resources aligns with its strategy to enhance vertical integration and reduce dependence on external coal suppliers.

Regulatory Compliance

JSW Steel has duly informed the National Stock Exchange of India Ltd. and BSE Limited about this development, in compliance with the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company acknowledged a slight delay in disclosure, attributing it to delayed communication from its subsidiary.

As JSW Steel proceeds with finalizing the contract and initiating mining operations at the Rajgamar Dipside coal block, industry observers will be keen to see how this acquisition impacts the company's operational efficiency and overall performance in the competitive steel sector.

JSW Steel , India's leading steelmaker, and South Korea's POSCO Group, a global leader in steel production, have taken a significant step towards deepening their strategic collaboration. The two companies have signed a non-binding Heads of Agreement (HoA) to jointly explore the establishment of a 6 million tonnes per annum (MTPA) integrated steel plant in India.

Key Highlights of the Agreement

• The agreement builds on a Memorandum of Understanding (MoU) signed in October 2024.
• The proposed venture will be a 50:50 joint venture between JSW Steel and POSCO Group.
• The integrated steel plant will have a capacity of 6 MTPA.
• Odisha is being considered as a potential site for the plant due to its natural resource base and logistical advantages.
• The partnership aims to combine JSW's execution capabilities and domestic presence with POSCO's steelmaking technology.

Next Steps and Feasibility Study

Both companies will conduct a detailed feasibility study to determine critical factors for the project, including:

• Plant location
• Investment terms
• Resource availability

Strategic Importance

Mr. Jayant Acharya, Joint Managing Director & CEO of JSW Steel, emphasized the strategic importance of this partnership, stating, "This partnership brings together JSW's proven execution capabilities and strong domestic footprint with POSCO's technological leadership in steelmaking. The proposed venture aligns with India's vision of Atmanirbhar Bharat and will help create a globally competitive manufacturing hub to serve both domestic and export markets."

Mr. Lee Ju-tae, Representative Director and President of POSCO Holdings, added, "India is central to the future of global steel demand. Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India's industrial growth while creating long-term value for both organizations."

Alignment with National Goals

The joint venture is positioned to support India's self-reliance goals and serve both domestic and export markets. This aligns with the country's vision of becoming a global manufacturing hub and enhancing its steel production capabilities.

India-China Technology Collaborations

In a related development, leading Indian businesses, including JSW Group and Adani Group, are seeking technology transfer agreements with Chinese companies, particularly in electric vehicle batteries and cost-efficient sectors. These discussions are being kept confidential due to potential public pushback, given China's reluctance to share technology and India's stance on Chinese investments.

Notably, Gautam Adani met with executives from Contemporary Amperex Technology and BYD in June, although Adani Group has denied plans for a BYD tie-up. JSW's Sajjan Jindal has signed a deal with Chery Automobile Co. for technology and components for new-energy vehicles.

Indian conglomerates entering clean mobility and battery production are highly dependent on China due to limited technical expertise. This technology dependence poses risks, as demonstrated by China's recent export curbs on rare earth magnets that impacted the automobile industry.

Conclusion

The signing of the Heads of Agreement between JSW Steel and POSCO Group marks a significant milestone in the steel industry, potentially leading to the creation of a major integrated steel plant in India. Simultaneously, the growing trend of India-China technology collaborations, particularly in emerging sectors like electric vehicles, highlights the complex dynamics of international business relationships in the region.

As both JSW Steel and POSCO Group are renowned for their expertise in steel production, this collaboration has the potential to create a formidable entity in the global steel market. The project, if realized, could significantly contribute to India's steel production capacity and potentially influence the dynamics of the domestic and international steel markets.

Meanwhile, the pursuit of Chinese technology by Indian companies underscores the intricate balance between technological advancement and strategic considerations in the rapidly evolving global business landscape.