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[Ferro-Alloys.com] Korean steel giant POSCO's drive to divest non-core assets hasn't stopped it from taking an interest in new Australian projects, as its memorandum of understanding with ASX-listed TNG Limited has shown in recent days.

A POSCO subsidiary has emerged as the likely future builder of TNG's Mount Peake vanadium project in the Northern Territory, after signing the MOU on May 23rd.

The non-binding agreement would see POSCO co-operate in the final feasibility study on the project, and be in pole position to be awarded the construction contract if the TNG board decides to proceed.

It follows a similar agreement that TNG struck with fellow Korean company Woojin in March, which was designed to shore up an offtake partner, among other things. TNG shares have performed well over recent months, with the share price rising from 4¢ in March to 11¢ last week.

• [Editor:Yueleilei]