POSCO Inks Deal With Aussie Coal Miner
POSCO said Thursday it signed a deal to buy a 19.99 percent stake in an Australian coal company for $22 million to secure a stable raw material supply.
Under the deal, Australia's Cockatoo Coal will initially provide up to 1 million tons of semi-anthracite coal, which is a key element for the steel production process, from the end of 2009, said a POSCO spokesman.
The purchase will be completed by September 30, making the world's fourth-largest steel maker the top shareholder of the Australian company.
Cockatoo, already securing two semi-anthracite coal reserves, plans to produce 4 million tons of coal starting 2009.
Because there are only a limited number of semi-anthracite coal producers, the Korean steel group saw it necessary to fix a solid provider.
POSCO has been seeking opportunities in Australia as it already invested in numerous coal mines and iron ore projects.