December, 2004 Korea Resources Corporation

Transcription

1 The Current Status & Prospects of Korea s s Overseas Mineral Development December, 2004 Korea Resources Corporation

2 The Role of Korea Resources Corporation A government-owned organization under the control by Ministry of Commerce, Industry and Energy (MOCIE). Established in 1967 as a comprehensive support services organization for Korean Mining Industry. To secure overseas mineral resources as well as to aid in rational development of domestic mines. Contribution to the development of national economy through successful undertaking of two main jobs above (domestic and overseas).

3 Korean Government s s Policy Construction of Joint Committee with mineral resources rich countries Providing support system to encourage Korean private sector s s involvement Government s s various support through KORES by providing them with technical & financial assistance Establishing a foundation for long-term and stable supply through overseas mineral resources development

4 Korea s s Demand and Supply of Mineral Resources ( The rate of dependence on imports ) (1000Mil.) (%) (20.00) Consumption Self-sufficiency Dependence rate* GDP growth rate *Dependence rate (the rate of dependence on imports) = (consumption-self sufficiency)/consumption *Except Coal

5 Korea s s Demand and Supply of Mineral Resources ( Imports of Bituminous Coal ) Imports (Mil. U$) 4,000 3,500 3,000 2,500 2,000 1,500 1, Imports(Mil. US$) Imports(Thou. ton) Year 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Imports (Thou. ton)

6 Korea s s Imports by Mineral Commodities (incl. ore. conc.) (Mill. US$) Lead/Zinc Uranium 850 1,084 Copper Iron 467 8, Others Coal Gold 2,496 2,865 As of the end of 2003

7 Korea s s Imports by Mineral Commodities (incl. ore, conc., ingot, billet etc.) (Mill. US$) 2,867 Gold 1,222 Copper 292 Uranium 12,748 3,285 Others Lead/Zinc 467 Iron 2,063 Coal 2,552 As of the end of 2003

8 Imports of Mineral Commodities by Major Countries (Year 2003) Minerals Quantity Major Import Countries Coal ( 000 tons) Iron ( 000 tons) Copper ( 000 tons) Lead/Zinc ( 000 tons) Uranium (ton U) Rare Earths (ton) 71,728.4 Australia, China, Indonesia, Canada 43,068.7 Australia, Brazil, India, Chile, S-Africa 1,324.2 Indonesia, Chile, Peru, Argentina 1,483.6 Australia, Peru, USA, Canada, Chile 3,588.0 Russia, Australia, USA, Kazak, Canada 4,980.0 China, Japan, USA, UK

9 Coal Imports of Korea by Countries (Quantity : Thou. Ton, Amount : Mill. U$) Others : U.S.A, India, S.Africa..

10 Coal Imports of Korea by Countries Canada Russia China Indonesia Australia Total (2003) : US$2,266Mil.

11 Six Strategic Minerals and Direct Development-import Target Ratio Minerals Coal Uranium Demand* (Target Ratio) 91.1Mil.T (30%) 4,883TU (10%) Achieved % - Iron Copper Zinc 43Mil.T (10%) 1,104Thou.T (20%) 1,012Thou.T (20%) 5% 7% 38% REE 6,503T (5%) 4% * Expected demand for 2010

12 Current Status of Overseas Mineral Projects - Since Total 162 projects in 39 countries - 22 projects are ongoing to production, 22 projects are going to develop, and 55 projects are in exploration stage As of the end of 2003 Mineral Project Investment Bituminous Coal Copper Lead & Zinc Others Total 37(19) 18( 9) 162(99) ( ) : On-going Projects 824(713) 235(193) 12( 6) 506(498) 95(65) 146( 79) 1,711(1,483) (Unit : Mill. US$) Major Countries Australia, Indonesia, Canada, China, Russia Kazakhstan, Zambia, Peru, etc. Australia, Canada, U.S.A Brazil, etc.

13 Coal Developing Projects by Korea s s Investment Country Mine Company Start Year Interest (%) Total Investment (mill $) Production (mill t/yr) Dartbrook Ssangyong Drayton Hyundai, Daesung Australia Mt. Thorley Charbon POSCO SK Springvale KORES, SK Ensham LG Clarence SK Indonesia Pasir Samtan Canada Greenhills POSCO Russia Erel LG USA Usibelli Hyundai 1993 Loan 2 1.5

14 Location Map of Coal Developing Projects by Korea s s Investment Usibelli Erel Greenhills Sukamaju Pasir Ensham Springvale, Clarence, Mt. Thorley, Sharbon, Dartbrook,, Drayton

15 Forecast for Coal Demand of Korea (Unit : million t) Use '03 '04 '05 '06 '07 '08 '09 '10 Thermal Metallurgical Cement Other Total Source1. Thermal Coal : (Korean Electricity Power Corp., ) 2. Others : (Korean Energy Economic Institute, )

16 Economic factor analysis of overseas coal development

17 Prospects & Recommendation Due to international resources crisis, unstable world mineral market and rise of shipping cost. Coal imports from Russia will be increased Continue project finding for new investment in Russia Request Russian side for Korean companies future participation based on mutual benefits - information on prospective coal projects in East Siberia

18 Thanks for Listening!