South Korea’s Pohang Iron and Steel Company (POSCO) is planning to expand its operations in Africa to augment its resource self-sufficiency.
The firm has agreed to develop a coal mine in Tete, Mozambique, along with Brazilian miner Vale.
The mine is expected to produce 11 million tons of coal per annum, which will be used as a raw material or for power generation, reports Reuters.
POSCO CEO Chung Joon-yang said the firm plans to double its raw material self-sufficiency by 50% by 2014.
The company has signed a memorandum of understanding with Anchor Holdings to form a joint venture for developing chrome, coal and other raw materials in Zimbabwe.
POSCO will also develop iron ore in the Mbalam region of Cameroon, to produce up to 35 million tons of iron per annum.