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Posco Acquires 70% Share in Australian Coal Mine
Jul. 12, 2010 Posco’s Australian unit, Posco Australia Pty. Ltd. (POSA), recently acquired a 70% share in the Sutton Forest Mine, which was owned by Anglo American. Posco says the acquisition raises its coal self-sufficiency ratio to 36% from the current 30%. (The company ultimately plans to increase the raw material self-sufficiency ratio to 50% via mine exploitation.)
The Sutton Forest Mine is located 160 km south of Sydney, Australia, with coal reserves of 115 million tonnes (up to 290 million tonnes). The mine, currently in the exploration stage, will supply 1.3 million tonnes of coal per year to Posco starting in 2016 when it is expected to be in full operation.
Posco formed a consortium with KEPCO and Australia’s Cockatoo to participate in package bidding for five Australian coal mines sold by Anglo American, which Posco says raised “negotiation synergy” to successfully secure shares against competitors from China and India.
Posco planned to jointly operate the Sutton Forest Mine in its early stages with a local coal mining company (Cockatoo, 30% shares) to learn coal mining and operational know-how while increasing stability and reducing risks.
Posco has also invested in shares of iron ore mines including Australia’s POSMAC, Jack Hills, Jupiter, Roy Hill, and Brazil’s Namisa, along with coal mines such as Australia’s Mt. Thorley, Foxleigh, Carborough Downs, Integra, Newpac; Canada’s Green Hills and Elkview; and Mozambique’s coal mines.
The company also has invested in New Caledonia’s nickel mine, Mt. Hope’s molybdenum mine in the U.S., South Africa’s Kalahari manganese mines, and others to secure materials lacking in Korea.