JSW Infrastructure to acquire 51% stake in South Minerals Port Company SAOC, Oman

JSW Infrastructure to acquire 51% stake in South Minerals Port Company SAOC, Oman

JSW Infrastructure has signed definitive agreements to acquire a 51% stake in South Minerals Port Company SAOC (“South Minerals Port Company” / “Port SPV”) in the Sultanate of Oman through its wholly owned step-down subsidiary JSW Overseas FZE. The remaining 49% will be held by Minerals Development Oman (MDO), the state-owned mine developer and operator.

The Port SPV will develop and operate a 27 million tonnes per annum (MTPA) greenfield bulk minerals port in the Dhofar Governorate of Oman, with an estimated project capex of about USD 419 million. Commercial operations are targeted for the first half of calendar year 2029.

Deal snapshot —

  • Acquirer: JSW Infrastructure Limited (through JSW Overseas FZE)

  • Target: South Minerals Port Company SAOC (Port SPV), Oman

  • Transaction type: Strategic majority stake in a greenfield port SPV

  • Stake: 51% equity stake

  • Partner / Co-shareholder: Minerals Development Oman SAOC – 49%

  • Asset: 27 MTPA greenfield industrial minerals port in Dhofar, Oman

  • Project capex: ~USD 419 million (c. ₹3,500–3,700 crore, FX-linked)

  • Use-case: Export of limestone, gypsum, dolomite and other industrial minerals from MDO concessions in Oman

  • Timeline: ~36-month construction; commercial operations expected in H1 CY 2029

  • Status: Agreements signed; completion subject to customary conditions precedent and regulatory approvals in Oman

What’s happening?

Under a Share Subscription and Purchase Agreement, JSW Overseas FZE will subscribe to fresh equity and purchase a small number of shares to reach a 51% holding in South Minerals Port Company SAOC. Once the transaction closes, the Port SPV will become a step-down subsidiary of JSW Infrastructure.

A separate shareholders’ agreement between JSW Overseas FZE and MDO governs the rights, obligations and governance of the Port SPV. The SPV’s exclusive mandate is to develop, own, maintain and operate the new bulk port that will support a linked industrial minerals project in Dhofar. 

In parallel (though technically a separate transaction), other JSW Group entities will acquire a 49% stake in South Minerals Company SAOC, a “Mine SPV” incorporated by MDO to develop gypsum and limestone mining operations that will feed the new port. Offtake agreements are being put in place for up to 12 MTPA of mined products and the Port SPV will provide cargo handling and storage services to this Mine SPV.

Strategic rationale – why this port, why Oman?

1. Strengthening JSW Infra’s global footprint

JSW Infrastructure has articulated a target to grow total cargo-handling capacity to around 400 MTPA by 2030, from ~170–177 MTPA today across its Indian ports and UAE terminals.
The Oman greenfield port fits directly into this expansion roadmap by:

  • Adding a sizeable 27 MTPA bulk port asset in the Middle East

  • Diversifying JSW’s geography beyond India and the UAE

  • Creating a long-term mineral export platform linked to group requirements in steel and cement

2. Securing long-term industrial minerals supply

The Dhofar region of Oman has significant reserves of limestone, gypsum and dolomite – critical inputs for steel, cement and other industrial uses.

By partnering with MDO at both the mine and port levels, JSW effectively:

  • Locks in long-term access to bulk minerals

  • Integrates mining offtake with port infrastructure

  • Gains better visibility on cost, logistics and reliability of raw-material flows into JSW Group’s India operations

3. Strategic India–Oman corridor

Oman sits on important global shipping routes with proximity to India, South Asia, East Africa and Southeast Asia. A dedicated minerals port in Dhofar:

  • Strengthens the India–Oman maritime trade corridor

  • Supports Oman’s Vision 2040 strategy to diversify away from hydrocarbons into mining and logistics

  • Positions the port as a regional hub for industrial minerals exports

Project & financial details —

According to JSW Infrastructure’s stock-exchange filing and press release:

  • Port capacity: 27 MTPA bulk port focused on industrial minerals

  • Project capex: USD 419 million

  • Construction period: About 36 months from commencement

  • Commercial operations date (COD): Targeted for first half of calendar year 2029

  • Structure: Cash investment by JSW Overseas FZE in the Port SPV via equity subscription and a small secondary share purchase; Port SPV to fund capex over the project lifecycle

The port is expected to be developed as a modern, mechanised bulk facility with high-efficiency cargo handling systems. This should support faster vessel turnaround and lower logistics costs for mineral exports.

What it means for JSW Infrastructure —

1. Portfolio mix and capacity

JSW Infrastructure has grown from a single port concession in Goa to a multi-port network across the west and east coasts of India, plus terminals in Fujairah and Dibba in the UAE. Combined installed cargo capacity is in the ~170–177 MTPA range, making it India’s second-largest private commercial port operator.

The Oman port adds:

  • A sizeable overseas greenfield project at attractive scale (27 MTPA)

  • A new anchor customer base via the linked Mine SPV and MDO

  • Enhanced resilience by expanding outside purely India-linked trade flows

2. Earnings visibility

With long-term mining offtake arrangements and a dedicated industrial-minerals focus, the port should enjoy relatively predictable volumes once fully ramped up. This is positive for JSW Infra’s long-term EBITDA and cash-flow profile, though the earnings contribution will be back-ended (post-2029) and subject to execution.

3. Capex and balance-sheet

JSW Infrastructure has signalled an aggressive but measured capex plan across its port and logistics businesses, backed by a strong balance sheet and healthy operating metrics.

The Oman project’s USD 419 million capex is meaningful but manageable at the group level, especially given:

  • The SPV structure

  • Co-investment by MDO

  • The multi-year phasing of spends over the construction period

What it means for Oman & MDO —

For Minerals Development Oman (MDO), the deal:

  • Brings in a large, experienced private port operator as strategic partner

  • Accelerates development of downstream infrastructure for the mining sector

  • Supports Oman Vision 2040 by monetising mineral resources and positioning Oman as a regional minerals and logistics hub

The port will act as a dedicated gateway for exports of gypsum, limestone and other industrial minerals from MDO concessions in Dhofar, improving evacuation, export competitiveness and overall value capture.

Key risks and things to watch —

  • Execution risk: Greenfield ports typically face risks on design, construction, environmental clearances and ancillary infrastructure (road/rail connectivity).

  • Volume risk: While the port is anchored by the Mine SPV and MDO, long-term demand for specific industrial minerals and pricing cycles will matter.

  • Regulatory & country risk: The project is located in Oman; investors will monitor legal, regulatory and concession-related terms closely over the concession period.

  • Capex discipline: Timely completion within the projected USD 419 million capex and 36-month schedule will be critical for returns.

About the companies —

JSW Infrastructure Limited

  • Type of company:
    Publicly listed infrastructure company; part of the JSW Group; India’s second-largest private commercial port operator.

  • Sectors / industries / categories:

    • Port and terminal operations (bulk, break-bulk, liquid and containers)

    • Maritime logistics – cargo handling, storage and evacuation

    • Rail and inland logistics, container freight stations and related infrastructure

  • Key assets / subsidiaries / stakes (illustrative):

    • Jaigarh Port (Maharashtra) – deep-water, all-weather port; flagship asset

    • Dharamtar Port and South West Port, Mormugao (Goa)

    • Paradip Iron Ore Terminal (Odisha), Mangalore Coal Terminal, Ennore coal terminal, and other Indian concessions

    • International terminals in Fujairah and Dibba, UAE (under O&M)

    • Logistics and rail assets via acquisitions such as Navkar Corporation and Gati Shakti-linked terminals

South Minerals Port Company SAOC 

  • Type of company:
    Special purpose vehicle (SPV); closed joint stock company incorporated in Oman by Minerals Development Oman SAOC (MDO). Currently a greenfield project company with no operating history.

  • Sectors / industries / categories:

    • Port and maritime infrastructure

    • Bulk industrial minerals logistics and export services

  • Main assets / business scope (planned):

    • Development, ownership and operation of a 27 MTPA greenfield bulk port in Dhofar Governorate, Oman

    • Port services (cargo handling, storage, loading) for industrial minerals produced from MDO’s mining concessions, particularly through the linked South Minerals Company SAOC (Mine SPV)

 

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