Reuters reported that South Korean steelmaker POSCO is considering buying direct stakes in an iron ore development and a port and rail project in Australia from Japan's Mitsubishi Corporation.

Mitsubishi has agreed to buy its partner Murchison Metals' stakes in the Jack Hills iron ore project and the Oakajee port and rail project for USD 315 million, looking to rescue the two multi-billion dollar projects.

The source added that POSCO, which owns just under 14% of Murchison, would cooperate with Mitsubishi on the Australian assets.

The source with direct knowledge of the matter said on condition of anonymity said that "We will consider various options. We still have time and we will talk with Mitsubishi."

(Sourced from www.reuters.com)