POSCO Holdings has decided to exit its troubled coking coal venture in West Virginia, declining to participate in a court-approved restructuring plan for the fire-damaged Longview Mine project.
The Korean steelmaker will halt additional investments in the operation, which has remained shuttered since a major fire on July 1, 2022. The incident cost POSCO 220.2 billion won ($165 million), according to the company’s earlier financial disclosures.
The withdrawal comes after a U.S. bankruptcy court approved Century Mining’s restructuring plan in March, which officially took effect on June 13. POSCO’s decision to stay out of the plan effectively ends its involvement in the joint venture with North Central Resources.
The Longview project represents another setback in POSCO’s overseas resource development strategy. The company has been aggressively restructuring its portfolio, completing 45 of 125 low-yield asset disposals in 2023 as part of a broader efficiency drive.
Industry observers expect POSCO to refocus its coking coal sourcing on more stable markets, particularly Australia and Indonesia, rather than continuing risky U.S. operations. The company still faces challenges including recovering its investment and managing its NCR shareholding.
The exit underscores the inherent risks facing Asian steelmakers’ overseas mining ventures, particularly in challenging regulatory environments.
