In addition the Korean investors also agreed to negotiate to buy at least 2.8 million metric tons of coal a year for the life of the mine, which has approval to produce as much as 10 million tons annually.

Apart from the Korea Resources Corporation, the other members of the group include four of Korea Electric''s units. South Korea is boosting investments overseas as competition with China, Japan and India for raw materials intensifies. The Asian country imports almost all its energy and minerals needs,

Xstrata Plc today announced that the proposed $2 billion copper and gold mine was attacked by communist rebels yesterday. Xstrata''s spokesman Roy Antonio said New People''s Army, the military arm of the Communist Party of the Philippines, attacked an army detachment outside the mine at 4 a.m. local time before entering the property and burning some buildings. No one was injured in the attack.

The Xastra controlled mine is the largest mining project underway in the Philippines and its attack could hurt the government''s attempt to lure more investors. Xstrata with 62.5% and Australia''s Indophil Resources Ltd with 34.1% jointly own the project. Indophil fell 3.6%.
The Australian dollar closed at $0.8797/00, down from Monday''s close of $0.8816/20. During the day, the domestic currency traded between a low of $0.8758 and a high of $0.8807.

Of the ASX 200 index shares, Fortescue Metals led the gainers with a rise of 8% followed by increases in APN News & Media of 5.7%, in Centro Retail Group of 5.3%, in AED Oil Limited of 4.5%, and in Seek Limited of 3.5%.

Of the ASX 200 index stocks Macquarie DDR led the decliners with a fall of 3.9% followed by losses in Flight Centre of 2.9%, in Bradken of 2.7%, in Bunnings Warehouse of 2.6 and in Sino Gold mining of 2.5%.

In other stocks the banking sector was mixed, with ANZ gained 0.4%, Westpac rose 0.5% following the opening a branch in Shanghai after Chinese regulators granted it a financial license, Commonwealth Bank of Australia declined 0.5%, and the National Australia Bank lost 0.8%.

The energy sector was also mixed, with Woodside gaining 1.1% and Santos adding 1.4%.

In the gold sector Newcrest Mining was up 2.1%.

Retailers stocks were mixed, with Woolworths rising 0.03%, Wesfarmers gaining 0.6%, Harvey Norman losing 1.8%, and David Jones declining 0.4%.

In the media sector Consolidated Media Holdings added 1.9%, News Corporation 0.9% and its non-voting shares dropping 15 cents to $23.23 and Fairfax declined 0.6%.