OREANDA-NEWS. May 10, 2012. CSC and POSCO have reached an agreement that CSC purchase a 2.5% indirect interest of RHH (the holding company of Roy Hill Project) from POSCO. The transaction will be performed through transferring a 12.5% holding of POSCO WA in KJTC Pty Ltd (KJTC), a special purpose vehicle incorporated in Western Australia, to CSC’s 100% owned subsidiary “CSC Steel Australia Holdings Pty Ltd”, reported the press-centre of CSC.

The investment amount AUD 305.2 million will be funded as equity into RHH to meet the Project’s development costs.

The Roy Hill Project integrates an open pit iron ore mine with the self-owned rail and port facility. The mine is located in the Pilbara region of West Australia and will be connected to the port facilities at Port Hedland via a dedicated 342km railway. Roy Hill is expected to commence operations in 2014 and ramp up to its full capacity of 55Mtpa of lumps and fines iron ore. By virtue of this investment, CSC will secure the offtake tonnages of 1.38Mt of iron ores per year, which raises CSC’s self-sufficiency from 2% to 7.5%. CSC is keen to acquire suitable iron ore and coking coal mines and targets a 30% raw materials self-sufficiency rate within 5 years.

The execution of this transaction is subject to the approval of the related government authorities.