Iron ore prospector Hancock Prospecting and a consortium comprising of POSCO, Marubeni Corp, and STX Corp, have entered into agreements to acquire a 30% equity interest in Australia's Roy Hill Holdings.
Roy Hill Holdings is the holding company of the Roy Hill iron ore project located in the Chichester Ranges of the Pilbara region of West Australia.
As part of the transaction, the consortium has acquired a 25% equity interest in the project in exchange for A$3.2bn, which will help meet project costs.
In addition, POSCO and STX have acquired a 5% equity interest in RHH (3.75% and 1.25% respectively) for A$332m.
HPPL chairman Georgina Hope Rinehart said, "We are delighted that POSCO and STX, as our initial Roy Hill investors, have increased their shareholding, and we welcome Marubeni into what is the most advanced integrated independent iron ore project in Australia.
"We are also pleased to finalise this strategic alliance with companies whose countries need our iron ore, and with the mutual determination to make this project a success."
The transaction is expected to close within 14 days.
Hancock Prospecting will retain the remaining 70% equity interest in the project.