ID :
190260
Wed, 06/22/2011 - 06:46
Auther :
Shortlink :
https://oananews.org//node/190260
The shortlink copeid
POSCO to expand resource development operations in Russia
SEOUL (Yonhap) - South Korea's top steelmaker POSCO said Wednesday it signed a deal with Mechel OAO of Russia to cooperate in natural resource development and industrial infrastructure building in the resource-rich country.
The memorandum of agreement (MOA) calls for the joint construction of stainless steel plants with the Russian mining and metallurgical company, and the building of support facilities at the Elga coalfield in Siberia with an estimated deposit of 2.2 billion tons.
The MOA also outlines cooperative tie-ups to develop natural resources, such as coal, in other countries that could help POSCO reduce its dependence on raw materials from Australia and Canada.
"The deal merges POSCO's know-how in the steelmaking and the construction sectors with Mechel's expertise in resource development. Such an arrangement can benefit all sides," POSCO said.
POSCO said helping to build up the Elga field in Russia's Sakha Republic has gained significance due to the surge in international coal prices in recent years. The coalfield is expected to start full-fledged commercial operations in 2012, with POSCO expecting a role in the mining of the energy resource in the future.
POSCO's affiliate, POSCO A&C Ltd., will build living quarters for miners and a hotel near the Elga field along with a hospital and police station.
The company added that with Russia slated to host the 2014 Winter Olympics and 2018 FIFA World Cup, there will be a rise in demand for various, high-quality steel products. POSCO and Mechel want to build an integrated stainless steel mill in Russia.
The MOA is a follow-up to the memorandum of understanding to expand cooperation in the resources development and construction fields signed between POSCO and Mechel on the sidelines of the G-20 economic summit held in Seoul late last year.
The memorandum of agreement (MOA) calls for the joint construction of stainless steel plants with the Russian mining and metallurgical company, and the building of support facilities at the Elga coalfield in Siberia with an estimated deposit of 2.2 billion tons.
The MOA also outlines cooperative tie-ups to develop natural resources, such as coal, in other countries that could help POSCO reduce its dependence on raw materials from Australia and Canada.
"The deal merges POSCO's know-how in the steelmaking and the construction sectors with Mechel's expertise in resource development. Such an arrangement can benefit all sides," POSCO said.
POSCO said helping to build up the Elga field in Russia's Sakha Republic has gained significance due to the surge in international coal prices in recent years. The coalfield is expected to start full-fledged commercial operations in 2012, with POSCO expecting a role in the mining of the energy resource in the future.
POSCO's affiliate, POSCO A&C Ltd., will build living quarters for miners and a hotel near the Elga field along with a hospital and police station.
The company added that with Russia slated to host the 2014 Winter Olympics and 2018 FIFA World Cup, there will be a rise in demand for various, high-quality steel products. POSCO and Mechel want to build an integrated stainless steel mill in Russia.
The MOA is a follow-up to the memorandum of understanding to expand cooperation in the resources development and construction fields signed between POSCO and Mechel on the sidelines of the G-20 economic summit held in Seoul late last year.
