POSCO joins the Pilgangoora party

KOREAN giant POSCO is the latest company to back Pilbara Minerals, with the conglomerate to invest nearly A$80 million to accelerate the expansion of the Pilgangoora lithium project.

POSCO joins the Pilgangoora party POSCO joins the Pilgangoora party POSCO joins the Pilgangoora party POSCO joins the Pilgangoora party POSCO joins the Pilgangoora party

Under a binding life-of-mine offtake agreement, POSCO has agreed to buy an initial 80,000 tonnes per annum of chemical-grade spodumene concentrate from Pilgangoora stage two.

That will increase to 240,000tpa if Pilbara elects to be a 30% participant in a proposed downstream joint venture with POSCO, with a 30,000tpa lithium carbonate/hydroxide conversion plant in South Korea planned for first production in 2020 using POSCO's proven PosLX extraction technology.

POSCO will make an immediate upfront investment of $79.6 million in Pilbara at 97c per share, a 16.8% premium to Pilbara's closing price yesterday of 83c, giving POSCO a 4.75% stake.

It is the first direct investment by a South Korea...