(from left) Santos CMI President Kim Dae-ho, IC Power Vice President Juan Carlos Camogliano and POSCO E&C President Yoo Kwang-jae join hands during a ceremony to sign a deal on the construction of a 720 megawatt gas-fired thermal power plant in Mollendo, south of Lima  at the Korean builder's branch office in Incheon on Feb. 19. (file photos: POSCO E&C)

POSCO E&C, under the leadership of new CEO Hwang Tae-hyun, has signed an MOU with TNG of Australia to take over a mining project worth 13 trillion won in Australia, according to POSCO and Australian mining sources recently.

The two companies will take over the Mount Peak Vanadium Project and conduct a feasibility study before talks on the extent of POSCO E&C’s role in the mining project take place.

POSCO E&C CEO Hwang Tae-hyun

The project will be the second one the POSCO Group is to be involved with in Australia following its investment in stakes in the Roy Hill Mining Project two years ago.

What sets the Mount Peak Project apart from the Roy Hill Project is that POSCO E&C will participate in the construction of the mining facilities and infrastructure with stakes in the project as well. 

The mine is estimated to contain 160 million tons of minerals including 36.8 million tons of titanium, 8 million tons of iron ore, and 45 tons of vanadium, among others.

In the meantime, the construction arm of POSCO Group clinched a large construction project to build a steel plant worth $600 million for CSS in Brazil last year, bringing its total projects secured in Latin America to $10.1 billion far since 2006 when the construction firm clinched a coal-fired thermal power plant project worth $370 million. The Ventanas Project was the first energy plant project ever won by a Korean builder in Latin America with the POSCO affiliate turning its attention to the region while the Middle East and other regions still provided a lot of opportunities for Korean companies.

Korean builders captured a total of $24.4 billion worth of construction projects in the region as of last year, with POSCO E&C holding a 41.4 percent share of those projects valued at $10.1 billion. The region has emerged as the third largest global construction market after the Middle East and Asia thanks to the foresight of POSCO E&C to be the first Korean builder to enter the region.

POSCO E&C’s strategy to enter the region has paid off handsomely with a $5-billion project to build an integrated steel mill coming its way in 2011, the largest single project ever won by a Korean builder overseas thus far.

The company plans to capture 7.4 trillion won worth of projects overseas this year by expanding its market in Central and South America and S.E. Asia from the Middle East, although the company’s total domestic and overseas sales came to over 8 trillion won, setting records in such key areas of operation as projects won, sales, and operating profit, the triple crown of the construction industry. The company won a total of 12 trillion won worth of projects both at home and overseas thanks to strong records in construction and overseas energy plant construction projects.

This year is the company’s 20th anniversary year. CEO Hwang took the helm of the company on March 16. The CEO called for safety first for workers when undertaking construction projects at home and overseas He will soon embark on a trip to the company’s worksites at home and around the world.

In the meantime, Chairman Kwon Oh-joon of POSCO said the steelmaker will aim to boost its annual sales to 78 trillion won in 2016 on a consolidated basis and boost its operating profit to 5 trillion won under the new management strategy. POSCO earned 61.8 trillion won in sales in 2013 and had an operating profit of 2.9 trillion won.