The Competition Commission of India (CCI) has granted approval for the acquisition of a combined 30 per cent stake in Australia’s Blackwater Coal Mine by NS Blackwater Pty Ltd and JFE Steel Australia (BW) Pty Ltd.
Under the approved deal, NS Blackwater will acquire a 20 per cent stake, while JFE Steel BW will take a 10 per cent interest in the Blackwater Coal Mine, an open-cut mining operation in Queensland, Australia. The mine has been in operation since 1967 and plays a crucial role in supplying coking coal to India through imports.
Both acquiring entities are special purpose vehicles (SPVs) formed explicitly for the transaction. NS Blackwater is ultimately owned by Japan-based Nippon Steel Corporation, and JFE Steel BW is a subsidiary of JFE Holdings, Inc.
The acquisition aligns with India’s growing demand for high-quality coking coal, a key raw material in steel production. The involvement of major Japanese steelmakers signals continued collaboration between India and Japan in securing essential resources for industrial growth.
While the CCI has approved the deal, a detailed order from the commission is expected to be released soon, outlining the specifics of the transaction and its regulatory implications.
Global Interest in Australian coal
The Blackwater Coal Mine remains a key asset in the global coal supply chain, with its coal being exported to several major steel-producing nations. The involvement of Japanese steelmakers reinforces the strategic importance of securing long-term coking coal supplies amid global market fluctuations.
The approval marks another milestone in cross-border investments in the natural resources sector, emphasising India’s role as a key importer of Australian coal.