Skip to comments.LG expands global natural resource biz (South Korea)
Posted on 06/28/2013 12:14:34 AM PDT by TexGrill
LG International (LGI) is continuing to expand its operations around the world.
In May 2012, LGI, the natural resource and industrial materials affiliate of LG Group, obtained the rights to run a bituminous coal mine in Indonesia. As recently as last December, the company bought a 20 percent stake in petroleum firm GeoPark Colombia. GeopPark Colombia is a subsidiary of GeoPark, an oil developing company headquartered in Argentina.
The firm plans to continuously expand its operations in Latin America, aiming to acquire natural resources and build infrastructure, according to an LG official.
GeoPark Colombia owns a total of 10 oil blocks in Colombia, seven of which are being drilled and three, explored. Llanos, in the north-central part of Colombia, is where most of GeoParks oil blocks are, and is the largest oil-production district with a total of 80 fields. The district is 200,000 square kilometers in area, twice that of South Korea.
The company is building an oil pipeline after Argentina implemented a national policy that is expected to lower costs to developers such as LGI.
On Jul. 1, 2012, LGI announced it signed an agreement to acquire a 60 percent stake in the GAM, or PT.Ganda Alam Makmur, an operator of coal mine, bituminous coal mine in eastern Kalimantan, Indonesia for 242.8 billion won ($210 million).
The deal gives LGI exclusive managerial and marketing rights for the entire operation. Accordingly, LG will operate two bituminous coal mines including the MPP, or PT.Mega Prima Persada a mine company. This deal could make LGI a major coal supplier in Indonesia according to the firm.
(Excerpt) Read more at koreatimes.co.kr ...