Jindal Steel & Power acquires South African coal mine: Report

Jindal Steel & Power, part of $10 billion conglomerate O P Jindal Group, has acquired the Kiepersol thermal coal mine in South Africa, as per a media report. The deal has emerged as the first completed purchase of a coal mine in South Africa by any Indian entity.

This underground mine, which produces mid-low volatile content thermal coal that is usually utilised for power generation, was developed by Duiker. The company will use the coal from this mine for power generation rather than a metallurgical application. Jindal Steel & Power is engaged in manufacturing of sponge iron, mild steel slabs, ferro chrome, iron ore, mild steel, and operates coal-based sponge iron plant.

The deal was finalised and payment for same has been made by the company. Jindal Group’s four companies are looking out for iron ore and coal mines in region of South Africa, Indonesia, Australia and Latin America. Group company, JSW Steel was said to be in talks with South African coal producers for thermal coal long-term supply agreements but no deal as such has been finalised.