Posco lifts stake in Murchison on weak financial market

The Korean company's wholly owned subsidiary POSCO Australia Pty Ltd has increased its stake to 12.26 per cent, up from 9.7 per cent.

POSCO Australia is Murchison's second largest shareholder.

The company, which is a Murchison customer, acquired 10.567 million shares on market at an average price of 75 cents.

Turmoil in financial markets and falling commodity prices have driven down the share price of resource companies across the board.

Murchison shares dropped six cents to close at 62 cents after a 12-month high of $4.80 in May.

"We are always pleased when one of our investors, especially one as big as POSCO, adds to their shareholding," Murchison executive chairman Paul Kopejtka said in a statement on Tuesday.

Murchison operates the modest Jack Hills iron ore mine 380km north-east of Geraldton in Western Australia.

Posco, Asia's third largest steelmaker, acquired a 10 per cent stake in metallurgical coal producer Macarthur Coal Ltd in June.