POSCO still active in Cameroon....Korean Steelmaker to Construct...

POSCO still active in Cameroon....

Korean Steelmaker to Construct a State-Owned Factory

Comments (1) Thursday, 25 July 2013 15:18
(Business in Cameroon) - POSCO, a South Korean Iron and steel company signed two agreements on July 23, 2013 with the government to jointly construct a State-owned steel factory, partnering with the Cameroon Industrial and Shipyard Company, the state-radio said Wednesday July 24th 2013.
Joon-Yang Chung, the Chief Executive Officer of POSCO and the Secretary of State in the Ministry of Mines, Industry and Technological Development, Fuh Calistus Gentry signed the first agreement at the prime minister’s office.
A CFAF 275 billion project, Cameroon, is expected to contribute a 30% stake in this company, Posco and International Finance Corporation (IFC) 20% each, 10% from Cameroonians and the rest from other partners, according to the French Language daily, Mutations of Wednesday July 24th 2013.
To produce 500,000 metric tons of steel, proper construction of the factory will begin after feasibility studies but another agreement is needed, noted the CEO of POSCO.
Focus of the first agreement is on technical cooperation and knowledge transfer, necessary for the Cameroon steel venture, according to Fuh Calistus.
Cameroon wants to transform a percentage of its minerals in the country. And, according to the Secretary of State, the factory will help the country to process 15% of all what is mined in Cameroon, respecting the mining code.
Meanwhile, the agreement with the Cameroon Industrial and Shipyard Company, according to the Board Chair, Louis Claude Nyassa permits them to draw financial, trade, industrial maintenance and technical partnerships with the South Koreans.
It is their second deal in Cameroon. POSCO partners with Afferro, junior iron ore miner, working in Nkout, one of the largest deposits in the country.
In February Afferro said that it had signed a 'memorandum of understanding' with POSCO Africa, with the intention that POSCO will make a project level investment and co-operate on infrastructure and project development funding, Reuters reported.
It broke off negotiations with India’s Jindal earlier the same month, saying an indicative bid “fundamentally undervalued” both the company’s deposits and its balance sheet.