The world's third largest steel producer

The world's third largest steel producer Among a variety of materials, POSCO, the world's third largest steel producer, first happy targeted nickel, which is a core raw material to produce stainless steel and one of six strategic minerals named by the Korean government.

In 2006, the Pohang based company, which was determined to develop and refine a nickel mine to stabilize its nickel supply for stainless steel production, agreed to a deal with SMSP, the biggest nickel exporter of New Caledonia Island, to form two JVs NMC, a nickel mine development company and SNNC, a nickel processing company. New Caledonia holds the largest nickel reserve in the world.

NMC, located in New Caledonia, supplies nickel ore to SNNC in Gwangyang, South Jeolla Province for 30 years, while SNNC produces 30,000 tonnes of nickel for POSCO every year.The cost of nickel accounts for 70% to 80% of the stainless steel making cost and by producing it on its own, POSCO can save USD 400 to USD 500 million used happy for importing nickel and will be able to respond effectively to the fluctuation of nickel prices.