Dongbu Steel and KORES have reached an agreement to develop iron ore and titanium in South Africa with South Africa based company Kermas. The investment is about USD 475 million.

Dongbu Steel in a filing to the stock exchange without specifying the expected investment in the facility said that under the memorandum of understanding the three firms will set up a smelting plant in Stoffberg, north of Johannesburg, to produce 1.2 million tonnes of pig iron per year from 2013.

A spokesman at the steelmaker said the plant would cost an estimated USD 475 million and that the firms had yet to decide on financing arrangements.

The filling added that the two Korean firms will buy 50% of the plant's iron output, as well as 50% of the output of by-product titanium.

(Sourced from Reuters)