The business deal complies with the memorandum of understanding (MoU) signed on 1 March 2024, between JSW Steel Italy SrL and the Ministry of Industries and Made in Italy (MIMIT), which outlined the process for transferring rights over the northern portion of the property.
According to the terms of the agreement, Metinvest must pay JSW Steel Italy Piombino SpA. a release fee of Euro 30 million as full payment for the deal.
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 upto 120 meters.
The cooperations with MIMIT and government institutions are aimed at the revival of the industrial site of Piombino as a steel hub.
Meanwhile, in a separate filing, the company informed that it has been declared as the preferred bidder by the Office of the Director, Directorate of Mines & Geology, Government of Goa, for Codli Mineral Block XII at Dharbandora in Goa.
"The company is declared as 'preferred bidder' with highest final offer price at 92.60% of the value of mineral dispatched, it said. The projected iron ore resources are 48.5 million tonnes in addition to 2.7 million tonnes of ore in dumps, JSW Steel said.
The firm will take all requisite steps to obtain letter of intent and statutory clearances to execute the lease deed with Mine Development and Production Agreement (MDPA) and start the mining operations.
JSW Steel, the flagship business of the diversified JSW Group, is India's leading integrated steel company.
The company’s net profit slumped 85.43% to Rs 404 crore on 10.90% decline in total revenue to Rs 39,684 crore in Q2 FY25 over Q2 FY24.
Shares of JSW Steel shed 0.81% to Rs 940 on the BSE.