S.Korea's Pohang plans steel mill in CameroonFri Dec 9, 2011...

S.Korea's Pohang plans steel mill in Cameroon
Fri Dec 9, 2011 4:41pm GMT

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Steel at a plant in Germany, November 10, 2011. REUTERS/Fabian Bimmer
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YAOUNDE (Reuters) - South Korea's Pohang Iron and Steel Company (POSCO) is planning to construct a steel mill in Cameroon along with a hydropower plant to run it, South Korea's ambassador in Yaounde, Cho une Hyuck, told reporters on Friday.

Plans for the mill come as the central African state seeks to develop two big iron ore deposits, including Australian Sundance Resources' 10-billion-tonne Mbalam project on track to start up by the end of 2014.

"The steel processing plant and a hydro-power to operate the plant can help Cameroon develop its natural resources in order to enhance value-added (exports) and sustainably spur its economic growth," Hyuc said.

He gave no details on the expected cost or timing of the project. A Cameroon government official said talks on the details of the plan are ongoing.

The project would strengthen ties between Cameroon and South Korea, whose joint-venture C&K Mining won a diamond mining license in January and which has also agreed to build a $7 million mining laboratory in the country.

POSCO, the world's sixth-largest steel maker, is majority controlled by the South Korean state.

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