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Amid Mounting Financial Pressures Jindal Steel to Shut down Coal Mine in Australia: Implications

News:

 One of Australia's oldest coal mines owned by Indian major Jindal Steel and Power is being shut down following its deteriorating operating and financial conditions.

Source: Business Standard

SNP Insight: 

The continued deterioration of market conditions in the sector along with mounting financial pressures have finally forced Jindal Steel and Power to shut down its Australian Coal Mine. The decision makes sense as the losses seems to have spiralling up with drop in global metallurgical coal from more than USD 300/Tonne in 2011 to  USD 85/tonne in 2015. However given the requirement of steel giant for plants in India, it needs to ramp up its operations in its other international coal assets located in Indonesia, South Africa and Mozambique to meet the demand.

Source: SNP Infra Research