POSCO International buys stake in Australian mining firm

POSCO International, a major South Korean trading firm, said Tuesday it has inked an agreement to purchase shares in an Australian mining firm for US$40 million to secure a supply of graphite from a Tanzanian mine. POSCO International signed the agreement with Black Rock Mining Ltd. which will bring POSCO Group's total ownership to 19.9 percent, according to the Ministry of Trade, Industry and Energy. The agreement will pave the way for the development of the Mahenge mine in Tanzania, owned by Black Rock Mining, with POSCO Group receiving 30,000 tons of graphite annually starting in 2026. The volume is set to reach up to 60,000 tons by 2028, which can be used in the production of 1.26 million electric vehicles. South Korea's imports of natural graphite amounted to 50,000 tons in 2023, with 97 percent of that volume coming from China. The industry ministry said the contract is anticipated to significantly diversify South Korea's supply chain for graphite, helping to address potential disruptions. "The agreement has paved the way to stabilize the supply of graphite, one of the key minerals on which South Korea heavily depends, and to overcome various hurdles in the supply chain," Trade Minister Cheong In-kyo said. Cheong added that the government will continue to provide tax and financial support, along with efforts to reduce risks for South Korean businesses. Source: Yonhap News Agency