South Korean steel giant Posco today said that it will hike its stake by 11.5 per cent in Australian iron ore miner Roy Hill Holdings Pty Ltd by paying 1.8 trillion won ($1.6 billion), its biggest investment in iron ore to date.
Posco already owns 3.75 per cent in Roy Hill and is in talks to raise its stake up to 15 per cent.
In January 2010, Posco acquired a 3.75 per cent in the Roy Hill project owned by Australia's richest woman, Gina Rinehart's Hancock Prospecting, with rights to raise its stake to 15 per cent.
The Roy Hill 1 Project is located approximately 277km south of Port Hedland and is at the eastern end of the Chichester Range. Hancock holds five tenements collectively referred to as Roy Hill 1 since 1993.
The Roy Hill 1 Project is a giant-sized, low phosphorus iron ore deposit located in the Chichester Ranges of the Pilbara region of West Australia. The deposit has more than 2.4 billion tonnes of low phosphorous iron ore resources.
It is located in one of the world's premier iron ore provinces, which currently exports more that 300 million tonnes annually.