Signed a mining development investment agreement at the 45th Korea-Australia Economic Cooperation Committee Joint Meeting on the 3rd
Invested USD 40 million to acquire a larger stake in the Mahenge graphite mine in Tanzania
Signed a global sales rights agreement for industrial graphite for steel and cement to expand its business
Raised expectations for POSCO Group’s ‘completion of full value chain for secondary battery materials’
POSCO INTERNATIONAL is working diligently to complete the ‘construction of full value chain for secondary battery materials.’
On the 3rd, during the ‘45th Korea-Australia Economic Cooperation Committee Joint Meeting’ held at Crown Towers Perth in Australia, POSCO INTERNATIONAL (CEO Lee Kye-In) signed an investment agreement worth USD 40 million with the Australian mining company Black Rock Mining.
The signing ceremony was attended by Jeong In-Kyo, Trade Minister of the Ministry of Trade, Industry and Energy; Madeleine King, Australian Federal Resources Minister; Chang In-Hwa, POSCO Group Chairman; Lee Kye-In, POSCO INTERNATIONAL CEO; and Kim Jun-Hyung, head of POSCO Holdings’ secondary battery materials department.
Since Chang In-Hwa took over as chairman in March, POSCO Group has proactively developed strategies to build a ‘full value chain for secondary batteries,’ and is also adapting flexibly to market changes, aligning with the global trend of establishing a domestic secondary battery industry network.
Taking advantage of the chasm (temporary downturn in demand) in the electric vehicle (EV) market, the company is actively securing promising assets, such as lithium salt deposits and mines, while expanding its presence in the secondary battery materials sector, which is essential for a sustainable and eco-friendly future, thereby enhancing the overall value and sustainability of the group.
Thanks to the investment agreement made by POSCO INTERNATIONAL, POSCO Group has acquired a 19.9% stake in Black Rock Mining, the owner of the Mahenge mine in Tanzania. This move will secure early access to graphite from the mine and establish a robust supply chain while expanding its graphite business through global sales rights agreement for industrial graphite.
Black Rock Mining’s graphite reserves are estimated at around 6 million tons, making it the second-largest in the world. Last year, POSCO INTERNATIONAL already completed the first phase of development in collaboration with Black Rock Mining. Once first-phase production begins, the company expects to receive a total of 750,000 tons of graphite over 25 years, averaging 30,000 tons per year.
With the recent completion of the second-phase contract, the company will secure an additional 30,000 tons of graphite annually for up to 25 years. POSCO Group anticipates that this will enable them to produce anode materials (POSCO FUTURE M) that comply with the United States’ Inflation Reduction Act (IRA) and the European Union’s Critical Raw Materials Act (CRMA), while enhancing the global competitiveness of the domestic eco-friendly vehicle supply chain.
The company is also expected to expand its graphite business scope following the signing of a global sales rights agreement for industrial graphite, which is used in steel, cement, and auto parts. The industrial graphite produced from this mine is projected to meet the domestic demand in Korea, thereby significantly enhancing the country’s mineral resource security.
“We will continue to identify projects that enhance the global competitiveness of key national industries, such as steel and secondary battery materials,” POSCO Group Chairman Chang In-Hwa stated. “Additionally, we will actively utilize the group’s diverse industrial portfolio and global network to establish supply chains that also contribute to national security.”
Black Rock Mining plans to raise capital through this investment and begin construction on mine development within this year, aiming to commence full-scale commercial production by 2026.