POSCO, South Korea’s leading steelmaker, said Tuesday it has acquired a stake in a Canadian mining company as part of its efforts to diversify its profit source.

A consortium that includes POSCO has secured a 15 percent stake worth $1.1 billion in ArcelorMittal Mines Canada, the company said in a statement.

POSCO will invest $270 million, with China Steel, the largest steelmaker in Taiwan, to pay $540 million for the deal, it said.

The remainder needed for the acquisition will be raised from institutional investors in South Korea, the company added.

The Canadian mining company mainly produces iron ore, with its capacity reaching 15 million tons every year, according to the steelmaker. (Yonhap News)