Calcutta, Oct. 9: The bidding war over Australian coke producer Rocklands Richfield seems to be intensifying. Navin Jindal-owned Jindal Steel and Power (JSPL) today consolidated its holding in the Australian miner by scooping up 2.26 per cent through open market transactions. This comes two days after the Ruias of the Essar group stunned corporate India by launching a $128.1-million rival bid for Rocklands.

The Jindals had picked up a 10.49 per cent stake in Rocklands on Monday, taking the holding of JSPL (Mauritius) in the company to 12.75 per cent. Shares were bought by JSPL’s Mauritius arm by paying 42 Australian cents apiece, Rocklands informed the Australian Securities Exchange.

The latest development is a clear sign that the Jindals are not going to quit the battle easily.

On September 22, Rocklands Richfield had signed a term sheet with JSPL under which the Indian company proposed to acquire a 100 per cent stake in the Australian firm for 42 cents per share. But on October 7, Essar Mineral Resources, part of the $18-billion Essar group, joined the fray by offering to pay 50 Australian cents per share, valuing the company at Aus $128.1 million.

Rocklands termed the Essar offer a friendly takeover bid.

The approach of the Australian company towards the new offer, which is 19 per cent higher, has prompted the Jindals to shore up their own voting rights in the company.

If a fierce bid battle breaks out between the two Indian companies, the existing stake will come in handy for JSPL, observers said.

The development shows the aggression of Indian companies in acquiring raw material assets.

Several Indian steel makers, including Tata Steel and the JSW group, have either acquired coal assets abroad or are trying to get access to this raw material in foreign markets.

In October 2007, Rocklands Richfield had acquired China Coke and Chemicals. This transformed the company from an under-capitalised explorer with promising prospects into a profitable industrial business. It controls a series of high-grade coking coal deposits in the Bowen Basin of Queensland.

The company has three projects: Hillalong, Richfield and Rocklands, comprising a mix of proven and measured resources and a large area of high potential targets. The company is in a position to start a feasibility study and project planning for mining at Hillalong.