TOKYO: A South Korean-Japanese consortium said on Friday it will pay about $3.67 billion for a 30.0 percent stake in Australia's Roy Hill Iron Ore project, one of the world's biggest iron ore mines.
South Korean steelmaker POSCO, Japanese trading firm Marubeni and Korean conglomerate STX Corp. said the Aus$3.53 billion deal would see the trio own 15.0 percent, 12.5 percent, and 2.5 percent of the venture, respectively.
Billionaire Gina Rinehart, Australia's richest person whose Hancock Prospecting owns the remaining 70 percent of the mine, welcomed the investment, which will help fund development costs.
"Having strong partners with international experience in finance, engineering, construction, marketing and logistics will provide support for Roy Hill and assist in securing debt financing," she said in the statement.
Roy Hill is expected to annually produce 55 million tons of iron ore, a key input for steelmaking, over almost three decades starting from 2014.
The deal on Friday gives the consortium the right to 16.5 million tons per year of iron ore at full production, Hancock and the new investors said in a joint statement.
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