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Rinehart partner Posco looks for Roy Hill investors

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South Korean steelmaker Posco is looking for strategic investors in the $US1.45 billion ($1.4 billion) stake it has in Western Australia's Roy Hill iron ore project.

The company is seeking investors for the 2.5 per cent stake out of the 12.5 per cent it has, said Posco's Kim Ji-young, as the steelmaker is tightening its belt in response to the prolonged downturn in the steel industry.

Posco, the world's fourth-biggest steelmaker, has been looking to boost its access to iron ore and coal used to make steel, including taking a 15 per cent stake in the $US10 billion Roy Hill project early this year.

But the company in April sold a 2.5 per cent stake in Roy Hill Holdings to China Steel Corporation for 359.9 billion Korean won ($325 million), leaving it with a 12.5 per cent stake.

The Roy Hill project is led by Gina Rinehart's Hancock, which is a 70 per cent stakeholder. Posco, Japanese trading company Marubeni Corp, South Korea's STX Corp, and Taiwan's China Steel Corp are among the other stakeholders.

Reuters





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