$3B Port Hedland Iron Project: Australia Approves POSCO Low-Carbon Iron Plant in Pilbara

POSCO Holdings received federal environmental approval for the first phase of its KRW 4 trillion low-carbon iron project in Port Hedland, Western Australia. The plant, planned for 2031 production, will process 3-3.5 million tons of iron ore annually. POSCO aims to finalize consultations, permits, and investment decisions with partners, including Roy Hill mine co-investors.

Australia approved a $3B POSCO-led low-carbon HBI project in the Pilbara, targeting 2031 production. The plant will initially use gas, with plans to transition to hydrogen. The project aims to reduce emissions and diversify Australia's iron exports. POSCO holds a 51% stake, with Marubeni and China Steel Corporation each owning 24.5%.

POSCO obtained a special license from OFAC to pay for Russian coal purchased before the Ukraine war, despite sanctions. The coal was shipped before sanctions tightened, and an arbitral tribunal ordered POSCO to pay. This is the first such license issued to a Korean company.

Australia approved Stage 1 of the Port Hedland Iron Project, a 3B USD venture backed by POSCO, Marubeni, and China Steel. Construction must start by 2031, with operations using 3-3.5M tonnes of ore annually and producing 2M tonnes of HBI. The project aims for decarbonization via hydrogen storage.

POSCO received final environmental approval for its $3 billion low-carbon iron processing plant in Australia. The project, estimated to cost 4.4 billion AUD, aims to produce 2 million tons of high-grade hot briquetted iron annually. POSCO plans to move forward with follow-up steps, including a final investment decision, with its overseas partners.

POSCO International agreed to acquire Chord Energy's Marcellus gas assets for $550M. The deal includes 32,000 net acres with 121M cubic feet per day production. It expands POSCO's US natural gas portfolio and integrates its LNG value chain. DLA Piper advised on the transaction.