POSCO to buy stake in South African mine

POSCO to buy stake in South African mine
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First Published: Fri, Apr 18 2008. 12 36 PM IST
Updated: Fri, Apr 18 2008. 12 36 PM IST
AFP
Seoul: South Korean steelmaker POSCO plans to buy a 13% in a South African manganese mine as part of a drive to secure a stable supply of raw materials.
POSCO, the world’s fourth largest steelmaker, said the investment would from 2010 secure an annual supply of 130,000 tonnes of manganese or a quarter of its annual needs.
“This is part of our efforts to cope effectively with rising prices of raw materials,” spokeswoman Ko Min-Jin told AFP.
The investment will be made through Pallinghurst, a consortium led by a British mining firm which owns a 49.9% stake in the mine.
To buy the stake in the mine and finance other projects, POSCO will invest $200 million in the consortium by issuing new shares in its subsidiary in Australia, she said.
POSCO has increased investments in mining firms abroad. It is competing with global giants to meet rapidly growing Asian demand led by China and India.
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First Published: Fri, Apr 18 2008. 12 36 PM IST
More Topics: South Korea | POSCO | South Africa | Steel | Manganese |