Posco Expands Resource Alliance with Australia Beyond Steel

Posco Group Chairman Jang In-hwa is pushing for an expansion of the company's resource alliance with Australia beyond steel, into lithium and energy. The partnership has been built over more than five decades and currently accounts for around 70% of Posco's raw materials.

The relationship began in 1971 when Posco started purchasing Australian iron ore under long-term contracts. In 2010, the company took a direct stake in the Roy Hill mine, expanding its role from simple raw material buyer to resource development investor.

Posco is now diversifying its sources of Australian lithium. The company has invested in lithium mines held by Australia's Mineral Resources and has secured rights to secure lithium concentrate and dividend income. It plans to raise ore-based lithium production capacity from 43,000 tons per year to 73,000 tons.

The partnership with Australia is also extending into energy resources. Since Posco International acquired Australian natural gas company Senex Energy in 2022, it has been expanding local gas production and additional resource development. Posco Group aims to triple Senex's natural gas output from 400,000 tons per year to 1.2 million tons.

Jang proposed strengthening supply chains by combining Australia's abundant natural resources with Korea's advanced smelting and processing technology. He also called for building a new energy ecosystem through stabilizing natural gas supply chains and expanding renewable energy cooperation.