Investing in Iron Ore and Coal Mines
Posco to increase self suffiency ratio for coal and iron ore
16.07.2010 | Deskman: Marcel Dröttboom
Posco, the world’s fourth largest steel maker, is investing heavily in iron ore and coal mines to widen its raw material base and secure stable supplies.
Seoul, South Korea – Posco, South Korea‘s top steelmaker, said Friday it will buy a 24.5 percent stake in an Australian iron ore mine for approx. USD 162 million in an effort to raise its resource self-sufficiency, Yonhap News Agency reported. The Australian Premium Iron Ore mine in Pilbara, Western Australia, is expected to produce an estimated 40 million tonnes of iron ore annually starting from 2014, Posco said, adding it will be able to secure 9.8 million tonnes of iron ore a year.
The company has been seeking to buy coal and iron ore mines in countries such as Australia, Canada and Brazil in a bid to secure stable supplies of these materials used to make steel products. The world‘s fourth-largest steelmaker said earlier this week that it plans to spend a record of approx. USD 830 million for purchasing mines.
The company‘s self-sufficiency ratio of key raw materials is estimated at around 18 percent, well below the world‘s leading steelmaker Arcelor Mittal‘s 46 percent. According to a Posco spokesman they are seeking to increase their self-sufficiency ratio to more than 50 percent by 2014.
This article is protected by copyright. You want to use it for your own purpose? Infos can be found under www.mycontentfactory.de (ID: 354118)