POSCO Argentina hit with million‑dollar court embargo over alleged supplier fraud

The Civil and Commercial Court No. 2 in Salta ordered a freeze on bank accounts and a multi‑million‑dollar embargo against POSCO Argentina. The ruling stems from a civil case accusing the South Korean miner of a systematic scheme that displaced local suppliers in the Sal de Oro lithium project, shifting work to firms linked to foreign contractors.

POSCO issued a statement saying the precautionary measure actually amounts to roughly USD 350,000, far less than reported figures, and emphasized that the dispute concerns contract performance and payments with a subcontractor. The company said it has launched legal actions to protect its rights while the court’s temporary suspension remains in force during the ongoing litigation.

The case concerns the $2 billion investment for lithium carbonate and hydroxide production at the Salar del Hombre Muerto and the plant in General Güemes, highlighting tensions between the multinational miner and Argentine suppliers.