POSCO, the world’s largest steel maker, has taken advantage of a South Korean trade visit to Australia to investigate potential investment in the nation’s growing rare earth element (REE) sector and to sign a major offtake agreement.
POSCO’s head of secondary battery materials Kim Jun-hyung revealed during the gathering in Perth that the global giant was looking to hold local discussions on minerals like graphite and rare earths during the meeting.
At the event, held to mark the 10th anniversary of the Free Trade Agreement between South Korea and Australia, the two countries also revealed plans to partner on critical mineral opportunities.
Critical minerals MoU
The Federation of Korean Industries and the Australia-Korea Business Council have inked a memorandum of understanding (MoU) emphasising the need for enhanced collaboration in critical minerals.
The MoU was signed by Western Australia Premier Roger Cook and South Korean Minister of Trade Inkyo Cheong.
South Korea said it plans to collaborate on establishing a US Inflation Reduction Act-compliant supply chain with Australia and secure new high-quality critical mineral resources through co-operation with Australian partners.
POSCO group chair Chang In-hwa highlighted the particular need to strengthen economic relations between South Korea and Australia in the areas of natural resources, eco-friendly materials and infrastructure.
“South Korea and Australia have been collaborating to pioneer future green development, which includes advancing eco-friendly materials and infrastructure beyond traditional resource cooperation in minerals and energy,” Mr Chang said.
Major funding deal
POSCO also cemented new Australian relations by signing a major investment agreement with graphite developer Black Rock Mining.
In exchange, Black Rock’s Tanzanian subsidiary Faru Graphite will grant POSCO the long-term fines offtake of graphite concentrates from the Module 2 stage of its Mahenge mine.
Proceeds of the US$40 million investment will be used to fund the development of Mahenge’s Module 1, from which POSCO had already secured an offtake contract for all the graphite fines produced.
