According to Korea ministry of knowledge economy, Korean companies are expected to more than triple their investments in mineral resources this year as they seek to secure supplies of coal, iron ore and rare metals.

Investments planned by companies including POSCO and Korea Electric Power Corp could surge to about USD 7 billion from an estimated USD 2.2 billion last year. The information is based on a survey of 25 companies involved in resource development conducted by the Energy & Mineral Resources Development Association of Korea.

Of the total projected investment, public firms are to invest 37.1% or USD 2.58 billion, while private firms will invest 62.9% or USD 4.38 billion. The state run Korea Resources Corporation is expected to promote new projects in rare metals, while the Korea Electric Power Corporation will focus on bituminous coal exploration project.

By region, more than half of overseas investment will be in Australia and other Oceania countries, followed by Southeast Asia. Emerging countries including Africa and Latin America are also regions of interest for mineral investments.

In terms of minerals, the biggest investments will be in bituminous coal, taking up 38.8% of total investment volume. Kepco and POSCO are pioneering efforts in this sector since coal is needed for both energy and steelmaking purposes.

Investment in rare metals, such as lithium and rare-earth elements, will account for about 9% of total investment.

The ministry said that it will increase support for the development of overseas mineral resources development in Latin America and Africa. The minister added that “The government will create a more stable foundation for firms to independently cooperate with other regions in gaining access to such resources as uranium, copper and rare-earth minerals.”

The government plans to increase the budget for supporting the mineral development sector from KRW 4.41 billion in 2010 to KRW 7.83 billion this year.

(Sourced from joongangdaily.joins.com)