POSCO PURCHASE 128 million metric tons of iron ore from RIO TINTO
The company Posco, South Korea#39;s largest steel maker, on Thursday announced the signing of an agreement with the Australian mining company Rio Tinto for the purchase of 128 million metric tons of iron ore.
Under the contract, Posco, in order to ensure a stable income of raw materials to processing plants to be imported iron ore extracted Rio Tinto, for over 10 years, beginning in April 2007. The company Posco, which is currently ranked fifth in the world in terms of steel production, has not yet provided a calculated value of the transaction.
Thus, the company made every effort to ensure the stability of the receipt of raw materials to the Company, as the demand for steel in the world market is growing exponentially, and, accordingly, the basic components that are used in the steel industry - coal and iron ore - are gradually becoming deficient .
For 2004, Posco has spent 42.5 million tons of iron ore, 61% of the raw materials imported from Australia, 29% - from Brazil.
In order to ensure sustainable access to iron ore company plans to build a steel plant in the Indian state of Orissa, which by 2015 will be released on the design capacity of about 12 million tons of steel annually
