Coal news and updates

JSW eyes stake in Canadian co Teck's coal biz

JSW Steel is looking to form a consortium to bid for a majority stake in Teck Resources's steelmaking coal business, people with knowledge of the matter said, potentially rivalling an $8-billion offer from commodities giant Glencore.

Mumbai-based JSW is seeking partners for an offer to acquire a 75% interest in the asset, known as Elk Valley Resources, the people said. That is a marked shift in its approach from July, when Bloomberg reported JSW was interested in up to 20% of Teck's coal business.
The deal could value the coal business at more than $8 billion and JSW has been sounding out banks about financing for a potential offer, according to the people. Deliberations are ongoing and there is no certainty whether an agreement will be reached, they said, asking not to be identified. Representatives for JSW and Teck declined to comment.

Any JSW consortium could yet face competition for the coal asset from Glencore, which in June proposed to buy the business for about $8 billion as an alternative to a full takeover of Vancouver-based Teck. Around that time, Teck said it had received indications of interest in its coal operations without naming the interested parties. Japan's Nippon Steel Corp had agreed to take a stake in a spun-off Elk Valley Resources in February before Teck dropped the plan to split its coal and metals businesses after failing to muster shareholder support.