Indian steelmaker JSW Group is reportedly competing to acquire two coking coal mines owned by BHP Group in Australia, aiming to secure fuel resources for its blast furnaces.
The two mines, Daunia and Faunus, located in Queensland, Australia, have a combined annual capacity of 20 million tonnes. Of this, 15-16 million metric tonnes are classified as coking coal, with the remainder being thermal coal.
JSW is currently the only Indian company participating in the bidding process, facing competition from international giants such as Nippon Steel, Posco, and Glencore, as well as local firms including Yancoal and New Hope, along with several private equity companies. Non-binding indicative bids are expected to be submitted within the next few weeks.
Despite global steel companies' efforts to decarbonize and explore alternative fuels such as hydrogen and natural gas for their blast furnaces, coking coal remains an indispensable component.
The quality of coking coal directly impacts emissions and energy intensity, making the availability of Australian coking coal a crucial consideration. High-quality coal can enhance furnace efficiency, thereby reducing carbon intensity. Additionally, freight costs from Australia will be a significant factor in the decision-making process for companies like JSW.
(Writing by Alex Guo Editing by Harry Huo)
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