Australian govt clears $3 bn POSCO-led low-carbon HBI project in the 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.

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.

Australia approved a $3B low-carbon iron plant in Pilbara, led by POSCO Holdings (51%), Marubeni, and China Steel. The project aims to produce 2M tons/year of iron using natural gas and later hydrogen, with output targeted for 2031. Environmental approval is granted, but final investment decision is pending.

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.