SK Group, the country’s third largest conglomerate, is set to acquire a controlling stake in an Australian mining company.
SK announced Monday that its subsidiaries including, SK Networks, will acquire a combined 40 percent stake in Cockatoo, an Australian mining company, in a deal worth between 300 billion and 400 billion won. The acquisition is to be completed within the first half of this year.
Cockatoo is extracting coal from 13 mines in Queensland and New South Wales. The mines are estimated to hold 1.5 billion tons of coal, which is 15 times larger than the annual 100 million tons imported by Korea.
SK has secured 2 million tons of coal annually through mining businesses in Australia and China. As Cockatoo is expected to produce 3 million tons in 2015, and 12 million tons in 2019, the deal will help the country pull up its energy self-sufficiency rate. The country currently relies 100 percent on imports for bituminous coal.
The acquisition follows the group chairman Chey Tae-won’s emphasis on resource development. He has sought globalization of SK Group, which had previously focused on the domestic market; and resource development overseas, ranging from oil and gas to coal and iron ore, was at the forefront of this drive.
SK announced Monday that its subsidiaries including, SK Networks, will acquire a combined 40 percent stake in Cockatoo, an Australian mining company, in a deal worth between 300 billion and 400 billion won. The acquisition is to be completed within the first half of this year.
Cockatoo is extracting coal from 13 mines in Queensland and New South Wales. The mines are estimated to hold 1.5 billion tons of coal, which is 15 times larger than the annual 100 million tons imported by Korea.
SK has secured 2 million tons of coal annually through mining businesses in Australia and China. As Cockatoo is expected to produce 3 million tons in 2015, and 12 million tons in 2019, the deal will help the country pull up its energy self-sufficiency rate. The country currently relies 100 percent on imports for bituminous coal.
The acquisition follows the group chairman Chey Tae-won’s emphasis on resource development. He has sought globalization of SK Group, which had previously focused on the domestic market; and resource development overseas, ranging from oil and gas to coal and iron ore, was at the forefront of this drive.
Korea Times
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