South Korean steelmaker POSCO is seeking to import iron ore from North Korea.

According to the company, the head of its branch in China is visiting North Korea to discuss possible purchases of iron ore. The South Korean firm also wants to increase the amount of coal it buys from the North.

A POSCO official said the discussions will be very basic, noting that no South Korean firm has ever brought in iron ore from North Korea.

He expected Pyongyang to propose a small-scale joint venture in the discussions. But he dismissed speculation that his company would build a steel plant in the North.

North Korea has an iron mine with deposits of three billion tons in Musan, North Hamgyeong Province.

POSCO is likely to import iron ore produced at the mine if it can reach agreement with the North.

POSCO China has been purchasing coal from North Korea for the past two or three years.