POSCO said that it would set up a company in Colombia for iron ore and coal resource development in an effort to secure a stable supply of key materials.

The venture with Blue Pacific of Colombia, an iron ore and oil developer, will be formed late this year at the earliest, the Korean steelmaker said.

But POSCO gave no details.

(Sourced from koreajoongangdaily. Com)

The steel company also said it has signed a preliminary agreement with Colombian auto parts maker Fanalca to build a steel pipe plant, which could have an annual capacity of 200,000 metric tons.

According to Posco, demand for steel pipe is expected to reach 200,000 tons in 2015, compared with an estimated 30,000 tons in 2013, as the Latin American country begins several oil and natural gas development projects in the next few years.