“Critical minerals are strategic assets that will drive industrial paradigm shifts… We feel a strong sense of mission for a sustainable future.”

Expecting optimal synergy from POSCO Holdings’ technological capabilities and Australia’s abundant resources

POSCO Holdings has joined hands with Australia’s national science agency, CSIRO, to collaborate on carbon-reduced ironmaking and critical mineral refining technologies.

In May, POSCO Holdings became the first Korean company to establish a specialized resource research centerlab in Australia – the POSCO Australia Critical Minerals R&D Lab. On September 11, the company signed a Memorandum of Understanding (MoU) with CSIRO to build a strategic partnership in the field of critical minerals.

The signing ceremony, held via video link between Korea and Australia, was attended by Ki-soo Kim, CTO and Head of POSCO Holdings’ N.EX.T Hub (Senior Executive Vice President), and Dr. Louise Fisher, Director of CSIRO’s Mineral Resources Research Unit, along with other senior executives from both organizations.

The scope of cooperation includes: △Carbon-reduced ironmaking technologies such as hydrogen reduction △Lithium refining and utilization technologies for secondary battery materials △Rare earth extraction and separation technologies.

Specific collaboration measures will include: △Identification and execution of joint research projects △Exchange of information and samples related to critical minerals △Operation of regular communication channels △Hosting of annual technology exchange meetings.

The MoU will be valid for five years from the date of signing, with the possibility of extension upon mutual agreement.

Dr. Ki-soo Kim, CTO of POSCO Group, stated, “This MoU marks an important starting point for establishing a strategic cooperation framework between POSCO Group and the Australia Critical Minerals R&D Lab in the fields of carbon-reduced ironmaking and critical minerals. We expect that by leveraging our synergies, we can stabilize the global critical minerals supply chain through technology and work together to create a sustainable future.”

Dr. Louise Fisher, Director of CSIRO’s Mineral Resources Research Unit, emphasized, “Our collaboration with POSCO Holdings reflects our shared commitment to advancing sustainable technologies that support a low-carbon future. By aligning our research priorities in low-emissions ironmaking and critical minerals processing, we are contributing to the development of a resilient, green metals industry in Australia.”

Through this agreement, POSCO Holdings plans to combine Australia’s abundant resources and technological expertise with its own capabilities to enhance upstream competitiveness, positioning the Australia Critical Minerals R&D Lab as a hub for the Group’s critical minerals R&D and leading open innovation initiatives.

Founded in 1916, CSIRO is Australia’s national science agency, employing more than 6000 people across 50 sites globally. Working closely with the Australian government and industry, CSIRO delivers world-leading research and development solutions across the minerals value chain in mineral exploration, efficient mining and sustainable operations.

▲On September 11, POSCO Holdings signed a Memorandum of Understanding(MoU) with CSIRO to build a strategic partnership in the field of critical minerals. From left: Dr. Min-young Cho, Head of POSCO Holdings Group Technology Strategy Office, Dr. Louise Fisher, Director of CSIRO’s Mineral Resources Research Unit, Dr. Ki-soo Kim, Director of POSCO N.EX.T Hub.

Since last February, CEO Kwon has visited Siemens, GE and other businesses in Silicon Valley to explore new technologies and expand POSCO Group’s smartization plan. At CES 2018, CEO Kwon saw first-hand the latest smart technologies and plans to implement them to all of POSCO’s core businesses including steel, construction, IT and energy. He also met officials from leading smart companies such as GE and DPR Construction, and examined possibilities for cooperation over commercializing POSCO’s smart solutions.

POSCO Kwon met Heilmann Matthias, President and CEO of Digital Solutions at Baker Hughes General Electric (BHGE). Matthias oversees the digital solution business of GE Group, and the two discussed the development of PosFrame, POSCO’s proprietary smart platform, its compatibility with Predix, GE’s smart platform, as well as the possibility for joint commercialization.

In particular, POSCO ICT is planning to sign an MOU with DPR Construction, the world leader in Smart Construction, to collaborate on smart projects and find opportunities to apply new ICT technologies to construction. Through this MOU, the two companies will cooperate on projects such as constructing and operating highly-efficient, low-cost data centers and smart factories controlled by PosFrame.

CEO Kwon also visited the automobiles, home appliances, smart city and smart home exhibition booths. He examined the latest tech trends of IT utilization in steel-consuming industries to develop compatible materials and steel solutions.

He also made sure to explore electric vehicle (EV) batteries and new IT technologies surrounding EVs, as lithium materials are the new growth engine of the company. CEO Kwon also evaluated the possibility of securing new markets for the group’s construction business at home and abroad.

POSCO Group plans to continue searching for new, innovative solutions to apply to its smartization efforts and actively develop domestic and overseas data centers and smart factory markets.

Cover photo courtesy of BGR.

The REI Expo is one of the world’s largest new and renewable energy exhibitions. More than 725 companies from 40 countries participated in the Expo, along with approximately 50,000 visitors. The turnout was largely due to the Indian government’s infrastructure expansion and intensive investment plans for new and renewable energy.

POSCO’s Booth at REI 2017 showcased PV structures made of PosMAC steel.

POSCO India’s booth at the event showcased its solar PV structures made of PosMAC steel to major solar companies and structure manufacturers such as Adani, Nextracker, Arctech, Softbank, Purshotam, etc.

During the Expo, Memorandum of Understanding (MoU) agreements were signed with four companies. POSCO India’s Chief Managing Director Gee Woong Sung said, “By the end of this year, we will complete the Indian solution marketing system, which will supply not only steel but also solar PV structures. In 2018, we will further expand PosMAC sales in India.”

POSCO India signs an MoU with Ganges Internationale.

In addition to showcasing their premium product, POSCO has been working hard to meet customer demands in all areas. In order to meet short delivery times and structural supplies required by various PV projects in all parts of India, POSCO India has decided to establish a PosMAC structure supply chain system through strategic cooperation with local construction companies.

In the first stage of development, the free space at POSCO-IAPC located in Ahmedabad will be utilized via a long-term lease, and the manufacturing machinery is being installed with an operation target set for October. In the second stage, POSCO India has plans for additional installations in the Delhi and Pune regions.

POSCO India will strive to build a differentiated sales network with its solution marketing activities and secure a sustainable competitive advantage over other companies through its premium-quality products and advanced supply chain system.

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The MOU-signing ceremony was held on October 17 in the POSCO magnesium plate factory in the Haeryong Industrial Complex in Suncheon. Approximately 20 people were present, including National Assembly member Jeonghyeon Lee, the governor of Jeolla-namdo Nakyeon Lee, the mayor of Suncheon Choonghoon Cho and POSCO CEO Ohjoon Kwon.

POSCO and Suncheon, Jeolla-namdo entered into an MOU on October 17 to expand the number of magnesium production facilities. Third from the left, National Assembly member Jeonghyeon Lee, governor of Jeolla-namdo Nakyeon Lee, POSCO CEO Ohjoon Kwon and the mayor of Suncheon Choonghoon Cho.

According to this MOU, POSCO and Suncheon will join forces in the purchase of a lot and the expansion of the facilities for producing automotive wide magnesium plates. They will also work side by side in transforming the Haeryong Industrial Complex into a light materials industry cluster by fostering and actively supporting magnesium-related SMEs.

Magnesium is in the spotlight as an ultra-light material that is lighter than aluminum and steel. As environment-friendly issues have emerged in the automotive industry, POSCO has focused on developments with magnesium, as it can be more effective than aluminum in terms of weight reduction. POSCO completed the magnesium plate factory in Suncheon in July 2007, and has since been producing and supplying alloy plates to domestic and overseas automakers and electronics companies.

POSCO’s magnesium was applied to Renault’s concept car ‘EOLAB,’ which was unveiled at the Paris Motor Show in October 2014. The roof of a standard car weights about 10kg, but the roof of ‘EOLAB’, which is made from POSCO’s magnesium plates, weighs about 4.5kg, and has accordingly attracted public attention.

POSCO is planning to capitalize on this expansion to preempt the anticipated increasing demand for magnesium for foreign automobiles, and become the first to make a move in the global market.

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The Expos, organized by the Korea Trade-Investment Promotion Agency (KOTRA), target the Chinese market, which is rapidly growing due to the popularity of Korean contents, or “the Korean Wave.” About 120 Korean companies looking to do business in China and some 600 local buyers are expected to participate in the exhibitions.

Actively promoting Korean products in Shenyang and Chongqing

The first KBEE was held from May 12 to 14 in Shenyang, where POSCO Daewoo showcased the excellence of Korean products by featuring more than 10 products related to cosmetics, home appliances and healthcare. A second KBEE will be held in Chongqing from May 19 to 21.

In addition, POSCO Daewoo is planning to use its regional network to help exemplary Korean small businesses to enter into the Chinese market by supporting them in the areas of logistics, inventory management, legal advice and financing.

During the expos, POSCO Daewoo will also sign a memorandum of understanding (MOU) with ALOG, the logistics subsidiary of Alibaba, Renmin Tonghui Mall, the large Chinese retailer, and HISUPER, to sell Korean products in China.

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Daewoo International President Young-sang Kim and Gecomex President Aurelio Mollineda signed an MOU in Cuba to cooperate on project implementation and trading.

Gecomex is Cuba’s largest state-owned trading company, and it handles about one third of Cuba’s total imports. Both parties will work together on a financial benefits program for imports and exports between the two countries, and for major on-going projects in Cuba. With the agreement, Daewoo International expects to stay ahead in the Cuban market and secure channels to sell high quality Korean products. It also expects to see tangible results from its entry into the Cuban infrastructure market on top of trading of steel, components, machinery and chemicals.

An official from Daewoo International said, “After resuming diplomatic relations with the U.S., Cuba has become an appealing country for Korean companies. With this agreement, we will export more to Cuba and push for infrastructure projects in telecommunications, electricity and transportation.”

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Per the agreement, POSCO will supply over 300,000 tons of black plates to the OCC over the next three years, starting in November.

The OCC was established in 1993 in Ohio, USA as a joint venture company of TCC Steel (formally Dongyang Tinplate Corp. and U.S. steelmakers. With an annual tinplate (TP) production capacity of 300,000 tons, POSCO has been supplying black plate (BP) materials required for tinplating to the OCC since 2009.

The POSCO-OCC MOU signing ceremony was held at POSCO Center and was attended by James A. Tennant (CEO of OCC), Daeryong Ha (Senior Vice President of POSCO), Cheolsoon Nam (Head of Steel Division of Daewoo International) and Seokhee Cho (CEO of TCC Steel).

James A. Tennant, CEO of OCC said, “We couldn’t have been able to achieve the current growth without POSCO’s stable supply of BP materials. I hope that both parties can continue a stable business in the future through close cooperation and co-responding to trade issues of US.”

The existing large scale water reservoirs are made of concrete, causing problems such as water leakage due to cracks and an unsanitary water supply environment. To overcome these challenges, the demand for the construction of water reservoirs made of stainless steel is increasing these days. Currently, however, the construction capacity for stainless steel water reservoirs is limited to 4,000 tons and therefore the technological development for the construction of large scale water reservoirs to accommodate an increased water supply is in need.

Partnering to Develop Large Scale Water Reservoirs

POSCO and Geumgang will cooperatively develop large scale water reservoirs which uses corrosion-resistant, high-strength duplex stainless steel. With this agreement, both parties agreed to draw structure analysis and design the plans of 20,000-ton scale water reservoirs, develop roof designs that can withstand earthquakes, wind and snow and perform a pilot project applying large volume water tanks, jointly. POSCO and Geumgang plan to complete the development of maximum 20,000-ton scale stainless steel water reservoirs by December this year, revise KS and expand the sales to local governments through the pilot projects. Meanwhile, POSCO expects to secure demands for 10,000 tons of stainless steel per annum with this partnership.

POSCO’s Integrated India Steelworks Project received the green-light.

On January 16^th, President Geun-hye Park, who is visiting India as a national guest, held a summit conference with India’s Prime Minister Manmohan Singh and received approval for Korean enterprise to support the Indian government in constructing a steelworks in the State of Orissa.

Accordingly, POSCO expects to speed up the administrative approval processes, including mining rights approval, and construction site securement which has been in progress since a local subsidiary was established in August 2005.

POSCO signed an MOU with the State Government of Orissa in June 2005 regarding steelworks sites, mining rights, and the provision of exclusive ports, and implemented a 12 million ton steelworks construction project with a 12 billion USD investment.

However, lawsuits concerning iron ore exploration rights arose as well as delays in securing sites owned by the state, creating difficulty in fully implementing the project.

With President Park’s assistance, POSCO was able to re-acquire environmental authorization and approval for steelworks construction, the first of which expired in 2012, 5 years after approval in 2007.

Accordingly, POSCO secured the legal ownership of 11,239,669㎡ of land on which it plans to construct a 8 million ton steelworks, and can continue the process to receive approval from the India Central Government for iron ore exploration rights in areas approximately 300㎞ inland from the steelworks, raising expectations for smooth steelworks project implementation.

POSCO plans to focus on securing mining rights timed in relation to steelworks completion, considering the time needed to complete mine development after receiving iron ore exploration rights approval, and will continue to prepare the basis for steelworks construction including site securement and infrastructure connection.

The steelworks to be built in the state of Orissa is competitive, with plans to apply environmentally-friendly FINEX technology for which POSCO holds patents, and will have a direct employment effect of approximately 18,000 hires, with another 870,000 jobs likely to be created in related industries. Once the Orissa steelworks is completed, quality steel materials can be provided, ultimately contributing to steel demand industry development and the regional economy and that of India overall.

In tandem with steelworks construction in India’s Eastern Orissa, POSCO constructed a Zinc Plating Plant for high end automobile steel plates, with completion in May 2012, and an annual production of 450,000 tons.; a Non-oriented Steel Plate Plant completed in December 2013, at an annual production of 300,000 tons; and a Cold-rolled Plant with an expected completion date of June 2014, and annual production of 1.8 million tons in the state of Maharashtra, investing a total of 1.2 billion USD to carry out down stream production and construction projects simultaneously.

Steel processing centers have also been established in Delhi, Pune, and Chennai to provide quality services for automobile and home appliance demand, while a logistics subsidiary is in operation at Diggi Harbor near Mumbai.

In addition to the steel project, POSCO Family companies including POSCO E&C, Daewoo International, POSCO PLANTEC, and POSCO ICT are making efforts to strengthen cooperation in various industries essential to the growth of India’s economy, with a total of 14 local subsidiaries, approximately 100 dispatched employees, and 1,540 local hires, contributing to regional growth and job creation.

On the 22nd September, POSCO signed a memorandum of agreement (MOA) with Chongqing Iron and Steel Company in China for the construction of a 3 million ton capacity FINEX integrated steelworks.

At the signing ceremony, POSCO CEO Chung Joonyang and Chongqing Mayor Huang Qifan were in attendance, with the MOA being signed by POSCO President Kim Junsik and Chongqing Iron and Steel Company President Zhu Jianpai.

The MOA will see POSCO and Chongqing Iron and Steel Co. both invest equally to construct a 3 million ton capacity FINEX integrated steelworks. The MOA follows the signing of the FINEX collaboration MOU in July, 2011, and is the product of a feasibility review that was carried out during the intervening two years. The main agreement is expected to be signed by the end of the following year after ratification by the Chinese government and approval for technology export by the Korean government.

In the photo from the fourth in the back right, POSCO CEO Chung Joonyang, Chongqing Mayor Huang Qifan, POSCO Executive Director Nam Sik (Steel Business Dept2 Head) / In the front, POSCO President Kim Junsik (left) and Chongqing Iron and Steel Company President Zhu Jianpai

FINEX was successfully commercialized at a 1.5 million ton scale by POSCO in 2007, the product of 15 years of research, and is POSCO’s unique new steelmaking technology in construction, with a 2 million ton scale.

FINEX is a game-changing technology for the steel industry, where ‘melted iron is produced in the furnace,’and is already making its mark in the global history of steelmaking. It is viewed as a next-generation innovative steelmaking method unparalleled in the industry, as competitors with histories spanning centuries in steel-making have been unable to perfect it.

What’s more, FINEX reduces investment costs when compared to existing furnaces by removing the coke and sintering processes which preliminarily process the materials in the existing furnace. A further benefit is that it is environment friendly, reducing pollutants such as sulfuric oxides by 97%, nitric oxides by 99%, and fugitive dust by 72%.

Additionally, more than 80% of the iron ore can be used in powder forms less than 8mm in diameter which are more than 20% lower in cost, reducing production costs as well.

With the MOA to export FINEX technology, POSCO has seized the initiative by planting itself firmly as a new steelmaking technology exporter. This marks a dramatic improvement achieved over the past half-century, from being previously a fast follower of leading overseas steel companies in steelworks operation. The company can now also add technology export to its business portfolio, showing that it can operate successfully in markets outside its existing stronghold of steel material production and sales, with it notably now receiving royalties on its technology. Not only that, but Korea, which is the world’s largest steel consuming country, with steel consumption reaching 1.1 tons per capita last year, can now place itself as a leading steel country, equipped with the world’s greatest steelmaking technology.

Chongqing Iron and Steel Company, which signed the MOA, was established in 1893, and is a state-run company owned outright by the city of Chongqing, which holds 100% of shares, with 22 subsidiaries and an annual production capacityof 6.5 million tons of steel.

Chongqing sits firmly at the center of China’s great development in the West of the country, with its economic growth rate outstripping China’s over the past few years. It’s strong performance is expected to power ahead further into two-digit rates, with high demand in steel compared to other regions. As part of that success, the Chongqing Iron and Steel Company plans to take a strong step forward as Chongqing’s only integrated steelworks through leveraging its partnership with POSCO and its global competitiveness.

Meanwhile, in addition to the MOA, POSCO and Chongqing Iron and Steel Company have signed an MOU to review cooperation in an automobile cold-rolled project in response to the rapidly-growing automobile industry in the Chongqing region.