South Korea Dongbu Steel and state run Kores had signed an agreement with South Africa Kermas to develop iron ore and titanium in the country. Dongbu Steel said in a filing to the stock exchange, without specifying the expected investment in the facility under the memorandum of understanding that the three firms will set up a smelting plant in Stoffberg, north of Johannesburg to produce 1.2 million tonnes of pig iron per year from 2013.
The plant would cost an estimated USD 475 million. The filing added that the two Korean firms will buy 50% of the plant iron output as well as 50% of the output of by product titanium.
