FACTBOX-Japan, S.Korea join hunt for global resources

TOKYO, July 9 (BestGrowthStock) – Japan and South Korea are under
intense pressure to secure raw materials for their economies as
neighbouring China strikes one resource-procurement deal after
another. (For related analysis: [ID:TOE66701U])

China in June signed more than $8.8 billion of commercial
and mining deals with Australia. [ID:nSGE65K059]

Japanese and South Korean firms, backed up their
governments, are stepping up efforts to secure resource deals
overseas.

Here are some recent deals they have pursued.

SOUTH KOREA:

* A South Korean consortium led by Korea Electric Power
Corp (KEPCO) acquired five Australian coal fields worth a total
of A$580 million ($488 million) from London-listed Anglo
American Plc (AAL.L: ) earlier this month. [ID:nTOE66404W]

* Korea National Oil Corp (KNOC) is talking over a cash
offer for Britain’s Dana Petroleum (DNX.L: ), as it looks to use
a $6.5 billion war chest to help double the country’s oil
reserves.

* POSCO (005490.KS: ), the world’s No.4 steelmaker, is
looking at A$6.6 billion worth of investments in Australian
Premium Iron Ore, a joint venture project in the Pilbara region
of Western Australia.

* KORES and South Korea’s small steelmaker Dongbu Steel
(016380.KS: ) in May agreed with South Africa’s Kermas to develop
iron ore and titanium there. [ID:nTOE64Q05T]

JAPAN:

* Vietnam’s state oil and gas group Petrovietnam signed a
memorandum of understanding on June 22 with the Japan Bank for
International Cooperation (JBIC), Nippon Export and Investment
Insurance and Sumitomo Mitsui Banking Corp for cooperation in
areas such as long-term finance arrangements. [ID:nSGE65K0JA]
* State-backed Japan Oil, Gas and Metals National Corp
(JOGMEC) signed a deal with American Lithium Minerals Inc
(AMLM.OB: ) on June 11 to jointly explore a lithium mine in
Nevada in the United States. [ID:nTOE65A047]

* JOGMEC on June 24 selected Japan’s second-largest copper
smelter Sumitomo Metal Mining Co Ltd (5713.T: ) to transfer its
exploration rights for copper, gold and metal molybdenum in
Brazil’s Carajas region.

* JOGMEC in May decided to offer equity capital finance to
a unit of JX Holdings Inc (5020.T: ) for an oil and gas
exploration project in Vietnam.

* JBIC signed a loan agreement in late May totaling $160
million with Similco Finance Ltd, a Canadian firm in which
third-largest copper smelter Mitsubishi Materials Corp (5711.T: )
has an equity stake, to finance the restart of the Similco
copper mine.

* JOGMEC took an equity stake in Sumitomo Metal Mining Co’s
nickel mining development project in the Solomon Islands in
March.

* Mitsubishi Corp (8058.T: ), JX Holdings unit JX Nippon
Mining & Metals Corp and Mitsubishi Materials in April teamed
up to raise their combined ownership stake in Chile’s Escondida
copper mine. ID:nSGE63C0JC]
(Reporting by Chikako Mogi in TOKYO and Cho Mee-young in
SEOUL; editing by Dhara Ranasinghe)

FACTBOX-Japan, S.Korea join hunt for global resources