Roy Holdings, a joint venture between POSCO and Hancock Prospecting, will construct a railway in Western Australia following approval by the state government.
The 300km railway, worth A$7.2bn ($6.13bn), will link the Roy Hill iron ore project to Port Hedland.
Hancock owns 95% of the joint venture while POSCO holds 3.75%, according to af.reuters.com.
Hancock Prospecting is an Australia-based mining company and South Korean-based POSCO is the world's second-largest steel maker.
