Two of Korea’s biggest companies, Samsung and Posco , are feeling the pain of the commodities-price crash which has devastated the mining and oil industries.
Samsung, a broadly diversified industrial business, has been hit by a loss associated with building an iron ore mine in Australia. Posco, a steel maker, from being an investor in the same mine.
The project causing problems for the Korean corporate giants is Roy Hill, a mine controlled by one of Australia’s richest people, Gina Rinehart.
Shipments from the $10 billion development in Western Australia have just started after a three-year construction phase which was led by Samsung C&T , the project development arm of the Samsung group.
Winner To Loser
But what should have been a winner for Samsung has turned out to be a loser with the company booking a $700 million loss on the project thanks to disputes with sub-contractors during construction and high Australian labor and material costs.
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