JSW Steel Divests US Coal Assets, Sale Includes Mineral Rights and Land

22 Sep 2023 , 02:18 PM

A deal has been made to sell the plant and equipment of Caretta Minerals LLC, a JSW Steel business in the US, to West Virginia Properties for a sum of USD 24 million. According to a regulatory filing made by JSW Steel on Thursday, the agreement also involves the sale of West Virginia Properties’ mineral rights and the land owned by Caretta Minerals LLC.

According to the filing, ‘Caretta Minerals LLC has entered into an agreement for the sale of its property, plant, and equipment as well as mineral rights to West Virginia Properties for a consideration of USD 24 million as operating the mines is not economically viable in the absence of a coal mining lease and a plant lease.’

According to the filing, JSW Steel has coal mining assets in the American state of West Virginia through its wholly-owned step-down company Periama Holding LLC.

In order to beneficiate the coal extracted, Caretta Minerals LLC, a step-down subsidiary of Periama Holding LLC, operated coal mines and a preparation facility under a lease agreement with the lessors, Alawest Inc. and West Virginia Properties.

JSW Steel stated that the business has recorded an impairment provision for all of the investments (including loans extended) pertaining to these coal assets in the previous years as a result of the lessor terminating the lease for the coal mining and plant.

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