POSCO, Korea’s leading steelmaker, said Thursday that its Canadian unit will set up a joint venture with Canada’s Fortune Minerals Ltd. to acquire a stake in a Canadian coal mine development project.
POSCO said that POSCO Canada Ltd. will invest a total of 181 million Canadian dollars ($189 million) for a 20 percent stake in the Mount Klappan coal project.
POSCO will pay 30 million Canadian dollars in advance, of which 20 million Canadian dollars would be used to fund the project, according to Fortune Minerals.
Mount Klappan, located in northwest British Columbia, is estimated to have a metallurgical coal reserve of 2.2 billion tons, with 107.9 million tons confirmed.
POSCO, the world’s No. 3 steelmaker, has been trying to buy coal and iron ore mines in Australia, Canada, Brazil and other natural resources-rich countries in a bid to secure stable supplies of raw materials for steel products.