POSCO to Invest $170 Mil. in US
By Jane Han
Staff Reporter
POSCO said Tuesday it will take part in a joint venture project with a U.S. mine in an effort to secure a stable supply of molybdenum, a key raw material for high-end steel products.
The world's fourth-biggest steel maker will invest $170 million in a 20 percent stake in General Moly's Mt. Hope project in Nevada. The project is expected to produce 15,000 tons of molybdenum annually beginning 2010, of which POSCO will take about 3,000 tons.
Company officials say POSCO's latest move will allow the company to purchase the essential raw materials at a lower price compared to other steel firms.
Molybdenum prices have been on the rise recently, squeezing steel makers to rush for stable supplies.
Among them is ArcelorMittal, the world's largest steel maker, which in November agreed to buy a 12.6 percent stake in General Moly to receive 6,500 tons of molybdenum annually for five years.