SINGAPORE Posco Ltd. has agreed to jointly establish a steel mill with Chinas Chongqing Iron & Steel Co. Ltd., a spokesman for the South Korean steelmaker confirmed to AMM sister publication Steel First Sept. 27.
Under a memorandum of understanding signed Sept. 22, the two companies will set up a joint venture in Chongqing, southwestern China, that will utilize Finex technology, an iron production process that was originally developed by Posco, he said.
The technology allows the direct use of cheap iron ore fines and non-coking coal as feedstock.
In addition to having significantly lower operating costs and emissions than the blast furnace process, Finex technology dramatically reduces overall construction costs by eliminating the need for sinter and coke plants, according to Posco.
The two steelmakers will each hold a 50-percent stake in the proposed 3-million-tonne-per-year steel mill.
A formal contract will be signed by the end of next year, once the governments of South Korea and China approve the joint venture, the spokesman said.
A version of this article was first published in AMM sister publication Steel First.