Monday, July 7, 2008

POSCO To Develop New Caledonia Nickel Mines

South Korean steelmaker POSCO said on Monday that it has received approval to develop five nickel mines in New Caledonia and export the ore to South Korea over the next 30 years.

The world's fourth-largest steelmaker said the deal approved by the government and parliament in Noumea would ensure a supply of 30,000 tons of nickel a year and raise cost competitiveness.

In 2006 POSCO spent $350 million to set up two joint ventures -- NMC, a nickel mine development company, and SNNC, a nickel processing company -- with SMSP, the largest exporter of nickel ore in the French-controlled island.

POSCO said SNNC's plant at the south coast port of Gwangyang would start commercial production in September.

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