Yonhap reported that South Korean trading companies are rushing to develop overseas natural resources as part of efforts to diversify their business portfolios and seek new growth engines.

LG International Corp the country leading coal trader started commercial production this month at a coal mine in Inner Mongolia where it owns a 30% stake.

In 2008, LG International acquired the stake in the Wantugou mine, 60 kilometers south of the city of Erdos from China energy group Boyuan. The mine which has an estimated reserve of 180 million tons of bituminous coal started test production last year.

LG International expects the mine to yield 10 million tons of coal annually after an initial production of 5 million tons. The company said it plans to acquire other mines in the area also. LG International currently produces 3 million tons of coal from its MPP mines in Indonesia and also has stakes in mines in Australia.

Daewoo International Corp the nation second largest trading firm is developing gas fields off the west coast of Myanmar.

According to Daewoo International a total of 4.5 trillion cubic meters of gas are explorable from the three gas blocks off the coast of the Southeast Asian country.

(Sourced from Yonhap)