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Posco receives dividends worth W50b from Roy Hill

Roy Hill iron ore mine in Pilbara, Australia (Posco)
Roy Hill iron ore mine in Pilbara, Australia (Posco)

Posco, a South Korean steelmaker, said Thursday it received dividends of about 50 billion won ($42.6 million) from Roy Hill Holdings, which operates an iron ore mine in Australia.

According to Posco, the Roy Hill Holdings board of directors agreed to start profit-sharing for the first time, seeing the improved financial solvency and profit.

Hancock Prospecting owns 70 percent of Roy Hill Holdings, and the remainder of the shares is held through a consortium, in which Posco is included along with Marubeni Corp. and China Steel Corp.

Posco said the total dividends planned for distribution is 475 million Australian dollars, and Posco will receive 50 billion won next month. Posco joined hands with Roy Hill Holdings in 2010 and owns 12.5 percent of the Australia-based company.

Roy Hill, located in east Pilbara, is the biggest single mine there with an iron ore reserve of 2.3 billion tons, according to Posco. Roy Hill Holdings produces 55 million tons of iron ore annually, which is fifth biggest in the world, Posco said.

By Jo He-rim (herim@heraldcorp.com)
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