POSCO to buy stakes from coal mines

POSCO to buy stakes from coal mines

South Korea's steel giant POSCO announced today that it will buy stakes in two Australian coal mines in order to ensure stable supplies of the raw material. POSCO will buy 5% stakes in Australia's Carborough Downs and Glennies Creek mines from US mining firm American Metals & Coal International Inc. POSCO stated that the deal will be completed in January 2005. The deal will provide POSCO to secure a maximum of 12 million tons of coal over the next ten years, starting from 2005. Carborough Downs located in Queensland, produces 2 million tons of coal per year while Glennies Creek Mine in New South Wales produces 1.7 million tons of coal a year.