Caretta Minerals LLC, an asset of JSW Steel in the US, has entered into an agreement to sell its plant and equipment for a consideration of USD 24 million to West Virginia Properties. The deal also includes the sale of property of Caretta Minerals LLC and mineral rights to West Virginia Properties, JSW Steel said in a regulatory filing on Thursday.
“Caretta Minerals LLC has entered into an agreement on 20 September 2023 for selling its property, plant and equipment and 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 coal mining lease and plant lease,” the filing said.
According to the filing, JSW Steel through its wholly-owned step-down subsidiary Periama Holding LLC owns coal mining assets in the state of West Virginia, USA.
Caretta Minerals LLC, which is a step-down subsidiary of Periama Holding LLC, was operating coal mines and a preparation plant to beneficiate the coal mined through a leasing arrangement from Alawest Inc and West Virginia Properties (the lessors).
However, pursuant to the termination of the coal mining and plant lease by the lessor, the company had recognised an impairment provision for all the investments (including loans extended) relating to these coal assets in the earlier years, JSW Steel said.