POSCO is partnering with Australian resource developer M Resources to secure steel raw materials. The two companies will invest $60 million to establish a joint venture, aiming to secure high-quality raw materials from Australia—the world’s largest iron ore producer—and build a stable supply chain.
On the 23rd (local time), M Resources announced the establishment of a joint venture with POSCO in Australia focused on steel raw materials. The initial investment of $60 million will be used for investments in key steel raw material projects, primarily in Australia.
Founded in 2011, M Resources is a Brisbane-based steel raw material supplier. It exports approximately 20 million tons annually and ranks as the world’s third-largest supplier of coking coal for steelmaking via maritime transport. The company has equity investments in Stanmore Resources, an Australian coking coal producer, and holds about a 50% stake in Onrail, a local railway company. With a broad portfolio spanning raw material assets to logistics, M Resources generates around $1 billion in annual revenue.
Matt Latimore, founder and president of M Resources, said, “We are pleased to strengthen our relationship with POSCO, one of the world’s leading steel companies,” adding, “We look forward to a mutually beneficial partnership moving forward.”
Through this collaboration with M Resources, which specializes in raw material development, POSCO aims to reinforce its supply chain. Australia is the world’s top producer and reserve holder of iron ore. According to UK-based market research firm GlobalData, Australia’s iron ore reserves are estimated at 51 billion tons as of 2023, accounting for 28.3% of global reserves. Annual production exceeds 900 million tons.
POSCO imports over $3.48 billion worth of iron ore, coal, nickel, and other raw materials from Australia annually, making it the largest single-company buyer of Australian resources. In January 2010, POSCO invested in the Roy Hill iron ore mine in Australia to secure supply. The Roy Hill mine holds approximately 2.3 billion tons of iron ore reserves with an annual production capacity of around 63 million tons. In October 2023, POSCO fully recouped its $907.3 million investment, achieving stable returns
