In January 2006, it was announced that POSCO and SMSP had formed a joint venture for the construction of a ferro nickel plant in South Korea. SMSP will provide around 1.8Mwt of ore grading 2.2% Ni to the plant which is to produce around 30kt Ni /a in FeNi (ca. 20% Ni). Construction commenced in mid-2006 and was commissioned in October 2008 at a capital cost of US$352M. The capital costs shown include the purchase of the SMSP mines at a cost of US$352M.