POSCO Resumes Development of Australian Iron Ore Mine..."Annual Production Expected to Increase by 1 Million Tons"

Seoul POSCO Center exterior view. (Photo by POSCO)

[Asia Economy Reporter Moon Chaeseok] POSCO, which invested 200 billion KRW over 10 years ago but halted the project, is restarting the development of an iron ore mine in Australia. If the development proceeds as planned, it is expected to secure an additional 1 million tons of iron ore annually.

According to industry sources on the 11th, POSCO has begun a feasibility study related to the development of the Hardy mining area in the Pilbara region of northwestern Australia.

This is one of the mining areas in the Pilbara mining zone where POSCO, in 2010, established a joint venture called 'API' with Australian mining company Hancock and Chinese steelmakers to promote development. POSCO holds a 25% stake in the joint venture. The development was halted at the time due to a drop in iron ore prices.

However, with recent rises in iron ore prices, the resumption of mine development is gaining momentum. Prices soared from $119 per ton at the end of last year to $157.55 per ton as of the 9th, maintaining a high trajectory.

A POSCO official explained, "The past investment scale was only about 200 billion KRW," adding, "Rather than seeing it as restarting the entire project after 12 years, it is a matter of re-evaluating the feasibility of the Hardy mining area, one of many mining areas in the Pilbara mining zone."

He continued, "As publicly known, it is expected to secure an additional 1 million tons of iron ore annually, not 5 million tons."

Through the Australian mine development, POSCO and POSCO International are expected to strengthen their collaboration system with Hancock, including increasing iron ore production, cooperating on carbon neutrality implementation, commercializing hydrogen and renewable energy projects, and acquiring natural gas development companies. There is also an expectation that the profitability of the API project will improve and that sharing nearby infrastructure will accelerate the development project.

This content was produced with the assistance of AI translation services.