Korea will resume operation at an abandoned iron ore mine in response to rising raw material prices. Located in Yangyang, Gangwon, Korea Resources Corporation will reopen the mine in 2011 in an attempt to stabilize supply and demand for resources used in metal making. The move also comes as a result of the government’s decision to reduce the country’s reliance on imported supplies of natural resources. Kores, the Korea Electric Power Industrial Development Corporation and Daehan Iron will undertake the KRW 17 billion project in a JV. An estimated total of 2.8 million tons of iron will be produced over a 10 year period with an expected value of KRW 240 billion. The iron will be delivered to local steel mill companies including POSCO and Hyundai Steel. Before its closure, the mine in Yangyang produced 300,000tns of iron ore per year from 1973 to 1995. Only one iron mine in Korea is operational. Located in Jeongseon, Gangwon, it supplies 455,000tns per year, 1% of Korea’s total demand. The Yangyang mine will raise total iron production to 769,000tns or 1.7% of Korea’s total demand.
