POSCO, SMSP form joint venture

South Korean steel giant POSCO and New Caledonia Island's Societe Miniere du Sud Pacifique S.A (SMSP) signed an agreement to set up a joint venture for nickel mining and refining. This joint venture will allow POSCO to stabilize its nickel supply for stainless steel production. Under the terms of agreement, SMSP will establish and operate a nickel mine in New Caledonia Island and POSCO will construct and operate a nickel refinery in South Korea. POSCO will own 49 percent stake of the joint venture and SMSP will hold the remaining 51 percent. POSCO and SMSP will construct the nickel refinery in the Gwangyangman Free Economic Zone until 2008. The refinery is expected to produce 30.000 tons of nickel annually exclusively for POSCO. Every ore POSCO needs for its nickel refining will be supplied by the mine in New Caledonia Island for 30 years.