South Korea’s Posco buys stake in Mozambican coal mine

18 June 2010

Seoul, South Korea, 18 June – The Pohang Iron and Steel Company (Posco), South Korea’s largest steel maker, plans to buy a 7.8 percent stake in a coal mine in Mozambique, financial news agency Bloomberg reported.

Citing, Chung Jae Woong, the spokesperson for Posco, the agency said that the group was expected to receive 5 million tons of coal per year from the Mozambican mine as of 2014.

The Posco spokesperson declined, however, to give a deal value, the identity of the seller or even the type of coal that the group would get from Mozambique.

Last February, the chief executive of Posco, Chung Joon Yang, said that the group would carry out an “aggressive” policy of mining investments, to try to secure a regular supply of the raw materials required for its business.

Posco recently acquired 15 percent of a Roy Hill project for iron ore mining in Australia. (macauhub)