Business
Fortune Minerals Announces that the Mount Klappan Joint Venture with POSCO Canada Has Closed
Issued Capital: 108,644,814 LONDON, ON, Aug. 9, 2011 /CNW/ - Fortune Minerals Limited (T...
About this update from Fortune Minerals Limited
[{"type":"text","content":"\n\n\n\n\n\nIssued Capital: 108,644,814\n\n\nLONDON, ON, Aug. 9, 2011 /CNW/ - Fortune Minerals Limited (TSX-FT) (\"Fortune\" or the \"Company\") is pleased to report that the recently announced joint venture\n agreement between its wholly-owned subsidiary, Fortune Coal Limited\n (\"Fortune Coal\"), and POSCO Canada Ltd. (\"POSCAN\") and its wholly-owned\n subsidiary, POSCO Klappan Coal Ltd., to advance the Mount Klappan\n anthracite metallurgical coal project in northwest British Columbia to\n production, has now closed (see Fortune Minerals news release, dated\n July 13, 2011). POSCAN's parent company, POSCO is based in South Korea\n and is one of the world's premier steel producers.\n\n\nPursuant to the joint venture agreement, POSCAN acquired a 20% interest\n in the Mount Klappan project by making its upfront cash payments to\n Fortune Coal, totaling $30 million.  Based on current capital cost\n estimates, POSCAN is anticipated to make total payments and cash\n contributions of $181 million to develop the Mount Klappan mine and\n related railway infrastructure.  POSCAN will also fund 20% of the\n operating costs and receive 20% of the metallurgical coal products\n produced from the mine and wash plant.  The Mount Klappan joint venture\n is owned 80% by Fortune and 20% by POSCAN and combines Fortune's local\n development and operations expertise with POSCAN's market knowledge and\n financial backing.  Fortune will serve as Manager of the project and\n will be compensated, on a recovery basis, for providing operational,\n technical and administrative support over the life of the mine.\n\n\nAbout POSCO:\n\n\nPOSCO, headquartered in Seoul, South Korea, is the world's 3rd largest steel producer by market value with a current market\n capitalization of US$33.0 billion1.  POSCO had crude steel production of 33.7 million tonnes in 2010 and\n sales for the 12 months ended March 31, 2011, totaled US$62.2\n billion.   POSCO's Gwangyang Works is the largest steel mill in the\n world, with capacity of 19.5 million tonnes.  POSCO has investments and\n operations across the globe, including in Korea, China, Japan, India,\n Indonesia, United States, Australia, Canada, Brazil, Vietnam and\n Thailand.  It continues to expand its global operations towards a goal\n of achieving a total crude steel pro...