JSW Looking At Coal Mines Abroad

Sajjan Jindal-led JSW Group today said it is looking at buying coal mines abroad for feeding its growing steel and power businesses.

"We would be importing coal from Indonesia, South Africa and Australia and acquire coal mines in these countries over a period of time," JSW Group vice-chairman and managing director Sajjan Jindal told reporters here.

The group will import about 6.5 million tonnes (MT) of coal in this fiscal and about 10 MT in the next fiscal to part-meet the input requirement of its steel and power plants.

Of the planned imports, JSW Steel will ship in 4.5 MT in the current fiscal and about 5 MT next fiscal. JSW Energy will import 2 MT in FY'10 and 5 MT in the next financial year.

"Out of JSW Energy's 5 MT, 2 MT would come from Indonesia, another 2 MT from South Africa and one MT from Australia," he added.

JSW Steel needs coking coal to run over 6-MT plant in Karnataka while JSW Energy requires the dry fuel to feed the proposed over 3,000-MW power generation to become operational by the next fiscal.

Giving details about the company's strategy, JSW Group CFO Seshagiri Rao said: "Now we will also be more focused on the backward integration. We are in constant lookout for coal and coking coal resources overseas while remaining committed to volume growth in our businesses."

Source: Business Standard