South Korea's largest steel maker Posco yesterday said it would sell part of its stake in Australian iron ore miner Roy Hill Holdings to China Steel Corporation for 359.9 billion Korean won ($316.7 million).
Posco, which imports most of its iron ore requirement, informed the South Korean stock exchange that post deal, it will hold a 12.5 per cent stake in Roy Hill Holdings.
In January 2010, Posco acquired a 3.75 per cent stake 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.
In March 2012, a consortium comprising Posco, Marubeni Corporation and STX Corporation jointly acquired 30 per cent of Roy Hill Holdings for A$3.2 billion.
Posco paid A$1.5 billion for its 15 per cent stake, while Marubeni paid A$1.5 billion for 12.5 per cent and STX A$200 million for 2.5 per cent.
The investment will provide the consortium with a combined 16.5 million tonnes of iron per year from the mine.