Jang In-hwa, chairman of POSCO Group, attended the 47th Korea-Australia Economic Cooperation Committee (KAEC) annual joint meeting in Adelaide, Australia, on September 2. During the meeting, he proposed enhancing the resource supply chain by combining Australia’s resources with Korea’s advanced technology.
The meeting was attended by over 200 officials from both countries, including Australian Foreign Minister Penny Wong, Minister for Trade and Tourism Don Farrell, and Martin Ferguson, chairman of the Australia-Korea Business Council (AKBC).
Established in 1979, the KAEC has served as a platform for discussing economic cooperation between the two nations. Participants agreed to use this year, marking the 65th anniversary of diplomatic relations, as an opportunity for a new leap in economic cooperation and emphasized the need to expand collaboration in response to the rapidly changing global supply chain environment.
In his opening remarks, Jang stated, "Critical minerals will serve as a new growth axis for industrial cooperation between our two countries, holding greater potential." He highlighted the need to strengthen the supply chain by linking Australia’s abundant resources with Korea’s advanced refining and processing technologies.
He also addressed the importance of stabilizing natural gas supply chains and collaborating in renewable energy. Jang urged for an expansion of partnerships into defense, space, and research and development (R&D) sectors, aiming for both countries to become key partners in future advanced industries.
During the meeting, cooperation strategies were discussed in three main areas: steel, secondary battery materials, and critical minerals; innovation and R&D; and energy transition and decarbonization.
POSCO Group introduced key activities of its Australian Core Resources Research Institute, the first overseas resource-focused research institute of the group, and suggested the need to expand resource cooperation into a technology partnership. POSCO International reported that it is broadening its cooperation scope from traditional resource acquisition to include renewable energy projects.
On September 1, the day before the meeting, Jang met with Australian Minister for Industry and Innovation Tim Ayres and Minister for Trade and Tourism Don Farrell to discuss resource cooperation strategies. He also requested support and collaboration from the Australian government to ensure the smooth progress of POSCO Group’s steel, lithium, and energy projects in Australia.
Jang also met with Kathleen Conlon, chair of Pilbara Minerals, to discuss expanding cooperation in lithium projects.
This initiative aligns with POSCO Group’s 'Triple Core' strategy, which focuses on expanding its business scope in the resource sector, centering on industrial resources like steel, strategic resources like lithium, and energy resources. Australia is a key supplier, accounting for about 70% of POSCO Group’s total raw material procurement.
POSCO Group has maintained a cooperative relationship with Australia in steel, secondary battery materials, and energy sectors. Since starting long-term purchases of iron ore in 1971, the group has imported over 1.5 billion tons of Australian raw materials and participated from the early stages in the development of the Roy Hill iron ore mine in 2010.
In the secondary battery materials sector, POSCO has been operating a lithium hydroxide production plant in the Yeulchon Industrial Complex in collaboration with Pilbara Minerals. This year, it secured a stake in lithium mines owned by Mineral Resources. In the energy sector, POSCO has been expanding its natural gas business since acquiring Senex Energy in Australia in 2022.
Meanwhile, Jang announced in July a new growth strategy for the group, aimed at restructuring its business portfolio around resources, including steel, lithium, and energy, to contribute to national industrial security and supply chain strengthening.
* This article has been translated by AI.
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