JSW Steel, led by Sajjan Jindal, is considering bidding for a majority stake in Teck Resources' coking coal business. The Canadian company is exploring various options, including a partial sale of its steel-making coal division. JSW Steel has initiated discussions with Teck Resources to potentially acquire a stake ranging from 20% to 75% in its coking coal business. The acquisition could cost between $1 billion and $8 billion, depending on the percentage of stake being acquired, according to sources familiar with the matter.

Teck Resources' coking coal business, managed under Elk Valley Resources, is the focus of this potential deal. In February, Teck Resources had announced its plans to reorganize into two separate publicly-listed companies: Teck Metals Corp and Elk Valley Resources. This separation aims to create two distinct resource companies with different commodity fundamentals and value propositions.

Sources indicate that JSW Steel might form a consortium of interested parties to bid for a majority stake. However, discussions are in their early stages, and it's uncertain if they will lead to a conclusive deal.

Earlier, JSW Steel had been in preliminary discussions to acquire up to a 20% stake and had explored bank financing for the deal. The company declined to comment when approached by media.

In April, Glencore, a Swiss commodities firm, made a bid for a majority stake in Elk Valley Resources, but it was rejected by Teck Resources, which deemed it unsolicited and opportunistic. Later, in June, Glencore presented another offer that included acquiring Teck Resources' metal mines in North America. Other companies like Japan's Nippon Steel Corp were also interested. Media reports suggested the deal could be worth up to $8 billion, which JSW Steel would need to surpass if it decides to form a consortium and bid.

In a July 24 interview, JSW Steel's Joint MD & CEO, Jayant Acharya, stated the company's intention to selectively bid for iron ore and coking coal mines to ensure raw material security. The company is exploring potential opportunities for coking coal mines in India, Australia, Canada, and other locations.