South Korean steel giant Pohang Iron and Steel Co. (POSCO) has announced that it will acquire shares worth KRW 1.779 trillion (US$1.56 billion) in Australia-based Roy Hill Holdings for cash payment. The Korean steelmaker's stake in Roy Hill will increase to 15 percent after the acquisition. POSCO is currently seeking to secure supplies of iron ore against competition from rival steelmakers in Asia.
The Roy Hill iron ore project is located about 277 km south of Port Hedland in the Pilbara region of Western Australia. Roy Hill has an indicated and inferred resource of more than 2.4 billion metric tons of iron ore.