South Korean firm to raise stake in Australia coal miner

SEOUL: A South Korean firm said on Monday it plans to expand its stake in an Australian coal miner to 40 percent as part of the resource-poor nation's efforts to secure stable energy supplies.

SK Networks, the trading arm of SK Group, said it would lift its stake in Cockatoo Coal from its current 5.5 percent in the first half of this year in a deal expected to cost about 380 billion won ($339 million).

Cockatoo is involved in exploring 13 areas estimated to hold about 1.5 billion tons of coal.

South Korea annually imports 100 million tons of bituminous coal. Its firms have stepped up efforts to secure a stable supply of raw materials and energy by acquiring foreign firms.

SK Group, the country's third largest conglomerate, has secured two million tons of coal per year through its mining businesses in Australia and China.

Copyright AFP (Agence France-Presse), 2012