From
the right, Kim Yong-soo, managing director of POSCO and Roger Cook, deputy
premier of Western Australia [Photo provided by POSCO]
South Korea’s largest steelmaker POSCO
is going all-out to secure low-carbon steel materials in Australia, in addition
to other key materials like hydrogen, lithium, and nickel.
POSCO announced on Monday that it discussed cooperation for a low-carbon hot
briquetted iron (HBI) project with the Western Australian government. HBI is a
processed product of direct reduced iron (DRI) in the shape of an oval
briquette after removing oxygen from iron ore.
The steel giant has set eyes on Australia as a strategic region to secure raw
materials.
POSCO Group Chairman Choi Jeong-woo met with Mark McGowan, premier of Western
Australia, on Jan. 30 to seek cooperation in the area of resource development.
“Australia has been a business partner since POSCO inception,” Choi said. “We
also need to cooperate in clean hydrogen and secondary battery materials
sectors.”
POSCO is speeding up its HBI project in Australia. It came up with an HBI
production plan in Australia last year and carried out a feasibility study. The
company obtained land allocation approval from the West Australian government
late last year.
“We will make a final decision on an investment after reviewing profitability
and carbon neutrality goal,” POSCO said.
So far, POSCO has invested over 4 trillion won ($3.1 billion) in resource
development in Australia, which includes lithium and nickel. The company forged
a partnership with a resource development company Hancock Prospecting Pty after
Choi met with officials from the local government and companies in June last
year.
Under the partnership, POSCO and Hancock will build an HBI facility and conduct
a feasibility study on the development of iron ore mines and facility
investment in hydrogen production in Australia.
POSCO has also partnered with Australian mining company First Quantum Minerals
Australia Pty for nickel development and discussed expanding production of
advanced phase lithium concentrate with Pilbara Minerals Ltd., a pure-play
lithium company.
“We will lead the green steel era in Western Australia,” said Kim Yong-soo,
managing director of POSCO.
Roger Cook, deputy premier of Western Australia, said that “POSCO’s project is
critical in reducing global carbon emissions, and the company’s idea of using
Australian resources for manufacturing is in line with the Western Australian
government’s long-term development plan.”