POSCO Accelerates Securing Low-Carbon Steel Raw Materials in Australia

Consultation with Roger Cook, Deputy Premier of Western Australia, and other officials

[Asia Economy Reporter Oh Hyung-gil] POSCO is seeking cooperation by meeting with Australian government officials to secure low-carbon steel raw materials.

Kim Yong-su, Head of POSCO's Purchasing and Investment Division, visited Western Australia for three days from the 8th to the 10th, requesting active cooperation and support for POSCO's Western Australia 'HBI (Hot Briquetted Iron) ' project through follow-up working-level meetings with key government officials.

Kim Yong-su, Head of POSCO Purchasing and Investment Division, met with Roger Cook, Deputy Premier of Western Australia, in Perth, Australia on the 10th (local time) to request cooperation and support for the HBI project. Seo Ji-won, Head of POSCO Raw Materials Division 1 (from left), Roger Cook, Deputy Premier of Western Australia, Kim Yong-su, Head of POSCO Purchasing and Investment Division.

Head Kim met with Roger Johnston, CEO of Pilbara Ports Authority; Bill Johnston, Minister for Mines of Western Australia; and Rebecca Brown, Director General of the Department of Jobs, Tourism, Science and Innovation of Western Australia in Perth, Western Australia, and subsequently met with Roger Cook, Deputy Premier of Western Australia, and Dean Mudford, Director General of the Western Australia Development Commission.

HBI is a product shaped like briquettes by removing oxygen from iron ore and reducing it to direct reduced iron. It is an essential raw material for producing high-grade steel in electric arc furnace operations. POSCO is promoting the introduction of electric arc furnaces to gradually transition to a carbon-neutral production system, making the stable supply of high-quality HBI important.

Last year, POSCO established a plan to produce HBI, a raw material processed from iron ore in Australia, and has been conducting feasibility studies. To promote the Western Australia HBI project, POSCO applied to lease land in the Boodarie Strategic Industrial Area from the Western Australian government and received land allocation approval from the Western Australian government at the end of last year.

Head Kim Yong-su said, "Western Australia is strategically very important not only for HBI but also for sourcing raw materials for POSCO Group's future businesses such as hydrogen, lithium, and nickel," adding, "We will secure competitiveness through stable and long-term HBI project promotion and contribute to revitalizing the Western Australian regional economy and advancing local industries."

Roger Cook, Deputy Premier of Western Australia, responded, "POSCO's Western Australia Green Steel Project is very important for global carbon reduction and aligns with the government's long-term development plans in terms of manufacturing using Western Australian resources," adding, "The government will actively support it and hopes the project succeeds through mutual cooperation."

Meanwhile, Mark McGowan, Premier of Western Australia, visited POSCO on the 30th of last month as his first corporate schedule and discussed future new business cooperation plans including hydrogen and critical minerals investment cooperation with Choi Jeong-woo, Chairman of POSCO Group.