□ Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) announced on March 25 that it will provide USD 325 million to POSCO for acquisition of shares of a Brazilian niobium* mining company.

*Niobium is a rare metal used in the production of high-grade steel such as stainless steel and steel plates for automobiles and pipelines.

○ POSCO formed a Korea-Japan consortium* in order to participate in the niobium mine development project and will be acquiring a 2.5% stake in Brazil CBMM**. Korea Eximbank agreed to provide funding for the acquisition.

* The Korea-Japan consortium is comprised of POSCO, the National Pension, JEF Steel Corporation, Nippon Steel Corporation, Sojitz Corporation, and Japan Oil, Gas, and Metals National Corporation (JOGMEC). Each member company will equally hold a 2.5% stake of the total shares acquired (15%).

** CBMM is a niobium development company in Brazil with 82% of the global niobium market share.

□ Over the next 20 years, this project will enable Korea to secure 4,000 tons of niobium annually, which are equivalent to 78% of the 5,146 tons imported in 2010.

○ Facing fierce international competition to secure overseas natural resources, cooperation between Korea and Japan will help secure a stable volume of rare metals which are essential in new growth sectors such as green and IT industries. Moreover, the consortium will serve as a bridgehead for Korean companies to tap into Central and South America including Brazil for rare metal development investment.

○ So far, Korea Eximbank has committed a total of USD 1.26 billion for nine projects to support rare metal development.

□ An official from Korea Eximbank stated, “As Korean companies are expanding into overseas natural resource markets in terms of sectors and regions, Korea Eximbank plans to further enhance comprehensive financial packages providing customized finance for sectors with great potential such as rare metal development, as well as non-financial services including investment information on target nations.”

○ He added, “Upon implementation of large-scale M&As or development projects which effectively increase independent resource development rates, Korea Eximbank will strive to fund these projects through various financing tools such as project financing (PF) and reserve-based financing (RBF), with respect to the structure of each project.”

□ Korea Eximbank has already raised this year’s target amount for resource financing to KRW 3.6 trillion to actively support Korean companies investing in overseas resource development. The Bank also plans to expand its support towards overseas agriculture and forestry development projects.