Thursday, September 18, 2025

India’s JSW Steel Eyes Valuable Stake in Teck Resources’ Coal Unit for Expansion Drive

JSW Steel Ltd (NSE: JSTL), India’s steel producer, has set its sights on a significant stake in the metallurgical coal unit of Teck Resources Ltd (TSX: TECK) as it aims to secure coal supplies vital for the company’s ambitious expansion endeavors.

The targeted stake in Elk Valley Resources Ltd., a subsidiary of the Canadian firm, ranges between 20% to 40% with mills from Japan and South Korea also lining up for a piece of the pie, potentially pushing the unit’s valuation to a whopping $8 billion.

With the clock ticking, Jindal anticipates the deal to finalize within the next month. In an interview with Bloomberg, he emphasized the superior quality of Teck’s metallurgical coal— a necessity for steel production in India where locally-sourced coal predominantly falls short in terms of grade.

JSW’s overarching objective is to nearly double its steel production expertise to 50 million tons annually in India by the decade’s end. To realize this vision, the hunt for coal assets is spanning across international territories, notably Australia and Canada.

However, the road isn’t absent of competition. Last week, reports emerged of JSW’s quest for allies to jointly acquire a 75% interest in Elk Valley. However, lurking in the shadows is Glencore Plc, which earlier in June floated an alternative proposition: an outright purchase of the business, mirroring the $8 billion valuation, as opposed to an all-out takeover of Teck.

Teck Resources last traded at $54.52 on the TSX.


Information for this story was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Views expressed within are solely that of the author. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Teck Resources To Spend Up To US$3.9 Billion Over Next Four Years On Copper Strategy

Teck Resources (TSX: TECK.B) is focusing its efforts on building out its copper production. The...

Tuesday, November 5, 2024, 08:41:12 AM

After Two Rejected Offers, Glencore Now Wants Teck Resources’ Steelmaking Coal Unit

Glencore has made an offer to acquire Teck Resources (TSX: TECK.B) steelmaking coal business as...

Monday, June 12, 2023, 08:32:55 AM

Teck Resources Misses Q3 Steelmaking Coal Guidance

Teck Resources (TSX: TECK.B) has failed to meet guidance for the third quarter when it...

Monday, October 16, 2023, 09:25:51 AM

Is Canuc Resources At The Core Of A New IOCG Mining Camp?

It appears that it is more than just Canuc Resources (TSXV: CDA) that is on...

Sunday, October 18, 2020, 09:00:00 AM

Rio Tinto Explores Potential Bid for Teck Resources

Rio Tinto (NYSE: RIO), the world’s second-largest mining company, is reportedly considering potential takeover bids...

Friday, July 12, 2024, 10:47:00 AM