05 Nov Korea: A valued partner of BHP
Korea is Australia’s fourth largest trading partner, so it goes without saying that BHP, or “The Big Australian” as it is more affectionately referred to, has had a long and complementary relationship with the Country, based on mutual benefit and respect.
Interestingly, Korea is also BHP’s fourth largest market, with sales increasing by about 25 per cent since 2016.
BHP first partnered with Korean steel mill POSCO in 1973 and later with Hyundai Steel in 2010. These relationships continue and today BHP supplies iron ore, metallurgical coal and nickel to these companies – commodities which are transformed into the materials needed to grow Korean cities and industry.
BHP and POSCO have a joint venture partnership for iron ore (POSMAC) and in the 2018 financial year, Korea bought more than 40 million tonnes of coal from Australian producers, including BHP. Since our partnership began, BHP has supplied more than 400 million tonnes of iron ore.
The joint venture is now also developing the South Flank iron ore project in the Pilbara. The US$3.6 billion mine will be complete in 2021 and will continue to meet POSCO’s needs for high-quality iron ore.
Yet it’s not just all about building cities and towers, BHP is also providing the materials to help them run too. We are a major supplier of copper, zinc nickel, condensate & LPG to Korean smelters and chemical plants, as well as energy coal, and LNG to the Korean power and energy related companies such as KEPCO and KOGAS.
BHP listens and adapts to its Korean customers’ needs and provides products to suit. For example, recently BHP has been selling higher calorific coal from our New South Wales Energy Coal asset to meet Korea’s unique power demands.
Our products have supported South Korea’s continued development for almost half a century and we will remain a reliable supplier of the quality raw materials it needs to grow.
BHP looks forward to continuing our relationship with Korea into the future.