Posco lifts Murchison Metals stake to 12pc

SOUTH Korean steel giant Posco Ltd’s Australian subsidiary exercised its option to invest a further $5 million in West Perth-based iron ore company Murchison Metals Ltd, increasing its interest to approximately 12 per cent of the current listed share capital. POSCO is a wholly owned subsidiary of the world’s third largest steel producer, POSCO Ltd of South Korea. Following the early exercise of the options, POSCO will hold 40 million shares in Murchison Metals. Murchison executive chairman Paul Kopejtka said in a statement that POSCO’S investment reflected a strong show of support for the company’s Jack Hills and Weld Range iron ore projects, following the strategic alliance committed to in September 2005. POSCO has an off-take agreement for up to 10 million tonnes of iron ore annually from the second stage of the Jack Hills Project and is a key member in an infrastructure consortium bidding to build and develop the northern corridor rail and port infrastructure in Western Australia’s Mid-West region. Murchison Metals said it was seeking to increase annual production up to 25mtpa.