POSCO to invest $170 mln in U.S. molybdenum

SEOUL (Reuters) - POSCO (005490.KS), the world's fourth-largest steel maker, said on Tuesday two of its units would invest $170 million in a 20 percent stake in a molybdenum mine owned by General Moly (GMO.A), a U.S.-based mining company.

The decision will give POSCO a stable supply of the raw material, used in making high-quality steel products, the South Korean steel company said in a filing with the Korea Exchange.

The Mt. Hope project located in central Nevada is expected to produce 15,000 tons of molybdenum annually, starting from 2010.

"Under the deal, POSCO will secure 20 percent of the output," the company said.

Separately, POSCO said it would invest $297.3 million in building a research and development centre in South Korea over the next three years.

(Reporting by Kang Shinhye; Editing by Sei Chong)