India’s Leading Iron & Steel Company Signs Commercial Agreement with Metinvest Adria
The stock is up by 26 per cent from its 52-week low of Rs 760.55 per share.
JSW Steel Italy SrL, a subsidiary of JSW Steel Ltd. signed a Commercial Agreement with Metinvest Adria S.p.A. The Commercial Agreement is in line with the MoU dated March 1, 2024 signed between JSW Steel Italy SrL and The Ministry of Industries and Made in Italy (MIMIT) wherein the mechanism for the transfer of rights relating to the northern area of the property was defined. As per the Agreement, Metinvest is obliged to pay a release fee of Euro 30 Mn. to JSW Steel Italy Piombino SpA. as all-inclusive consideration for the transaction.
The performance and transfer of rights to Metinvest are subject to Metinvest complying with certain procedures with the Government and Institutions within a specific timeframe. Above commercial agreement is furtherance of the MoU and will lead towards realisation and execution of the Accordo Di Programma (AdP or The Program Agreement). As per the MoU, JSW and MIMIT have identified various areas of cooperation between JSW and the Government Institutions for the implementation of the Rail Mill Modernisation Project which includes Revamping of the Rolling Mills, Setting up Hardening Facility and Increasing the length of the Rails being produced to up to 120 meters. The cooperations with MIMIT and Government Institutions are aimed at revival of Industrial Site of Piombino as Steel Hub.
Additionally, the company has successfully emerged as the "Preferred Bidder" for the Codli Mineral Block XII in Dharbandora, Goa. This follows their participation in the forward auction conducted by the Directorate of Mines & Geology, Government of Goa, on November 12, 2024. The Company secured this position by offering the highest final bid price of 92.60% of the "Value of mineral dispatched." With an estimated 48.5 million tonnes of Iron Ore Resources and an additional 2.7 million tonnes in dumps, this acquisition signifies a significant step forward for JSW Steel. The Company will now proceed with the necessary steps to obtain the Letter of Intent, statutory clearances, and execute the Lease Deed with Mine Development and Production Agreement (MDPA) to commence mining operations.
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About the Company
JSW Steel, a leading integrated steel company in India, is committed to sustainable growth and innovation. With a focus on expanding its production capacity, the company aims to solidify its position as a global steel powerhouse. By leveraging strategic partnerships, such as the one with JFE Steel, JSW Steel is able to introduce cutting-edge technologies and high-quality steel products to various industries. As part of the diversified JSW Group, the company benefits from a strong financial foundation and a wide range of business interests, enabling it to navigate market challenges and seize emerging opportunities.
The company falls under the BSE Sensex Index with a market cap of over Rs 2.3 lakh crore. The stock is up by 26 per cent from its 52-week low of Rs 760.55 per share. Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.