OREANDA-NEWS. May 15, 2012. Roy Hill Holding Pty Ltd (RHH), the holding company of Roy Hill iron ore project formed by Australian miner Hancock Prospecting and a Korea-Japan-Taiwan investment team, hold a “Historic Signing Ceremony” in Sydney, reported the press-centre of CSC. 

RHH consists of 5 shareholders, the shareholding structure as it currently stands is Hancock 70%, POSCO 12.5%, Marubeni 12.5%, STX 2.5% and CSC 2.5% respectively. Hancock is a renowned mining company in Australia, POSCO is the largest steel mill in Korea, Marubeni ranks top five trading house in Japan, while STX is a heavy industry company in Korea. The Roy Hill iron ore project is located in the iron ore rich Pilbara region of Western Australia and plans on producing maximum 55 million tons of iron ore annually starting from end of 2014, including lump and fines ore.

CSC purchased a 2.5% indirect interest of RHH from POSCO at AUD 305.2 million in total. By virtue of this investment, CSC will secure off-take tonnage of 1.38Mt of iron ores per year when Roy Hill production is in full swing. CSC will also raise its self-sufficiency rate to 7.5% from 2%. The current raw materials self-sufficiency rate of POSCO is known to be around 24% which is a goal CSC strives to catch up. To this end, CSC is keen to acquire suitable iron ore and coking coal mines and targets a 30% raw materials self-sufficiency rate within 5 years.