Post by : Saif
Korea Zinc, the world’s largest zinc smelting company, is preparing to discuss a major plan that could reshape its future and deepen ties between South Korea and the United States. According to sources familiar with the matter, the company’s board is set to review a proposal to build a large smelter in the United States through a joint venture involving the US government and American companies. The project, valued at around 10 trillion won, or about $6.8 billion, would focus on refining critical minerals that are increasingly important for modern technology and national security.
News of the plan was welcomed by the stock market. Korea Zinc shares jumped about 11 percent in morning trading, showing strong investor interest. Many see the proposal as a strategic move that could place the company at the center of global efforts to reduce dependence on China for key minerals. However, the plan has also caused sharp disagreement among major shareholders, revealing deep divisions within the company.
The proposed smelter would produce minerals such as zinc, antimony, and germanium. These materials are used in products ranging from telecommunications equipment and semiconductors to military technology. At present, China dominates the global supply of many of these critical minerals. In recent years, trade tensions between Washington and Beijing have highlighted the risks of relying too heavily on one country for such resources.
The United States has been working to secure alternative supply chains, especially after China banned exports of antimony and germanium to the US in late 2024. Although the ban was later suspended, it raised concerns in Washington about supply security. A joint venture with Korea Zinc could help address these concerns by producing key minerals outside China.
According to local media reports, the US government and US defense-related companies would invest about 1 trillion won in the project and together acquire a 10 percent stake in Korea Zinc. Most of the funding for the smelter is expected to come from borrowing. If confirmed, the involvement of the US government would be unusual, as it is rare for Washington to take an ownership stake in a foreign company.
This aspect of the plan has drawn strong criticism from Korea Zinc’s major shareholders. The Young Poong conglomerate, together with private equity firm MBK Partners, controls about 41 percent of the company’s voting rights. They have accused the company’s leadership of using the US partnership as a way to protect current management. In particular, they argue that Chairman Yun B. Choi is seeking a “white knight” to help him stay in control of the company.
The criticism comes against the backdrop of an ongoing power struggle. Earlier this year, Young Poong and MBK attempted to gain more influence over Korea Zinc’s board but failed to secure a majority of seats. Their latest comments suggest that tensions between shareholders and management remain unresolved.
Despite the controversy, Korea Zinc has been actively seeking ways to expand and secure its role in the global supply chain. In August, the company announced a separate agreement with US defense firm Lockheed Martin to produce germanium from 2028 using raw materials sourced outside China. This deal underlines the company’s push to align with Western efforts to build safer and more reliable mineral supplies.
The board’s discussion on the US smelter plan will be closely watched by investors, governments, and industry experts. If approved, the project could strengthen Korea Zinc’s global position and support US efforts to secure critical resources. At the same time, it may deepen internal conflicts over control and strategy. The outcome will likely shape not only the company’s future but also wider efforts to reduce global dependence on China for essential minerals.
#trending #latest #KoreaZinc #CriticalMinerals #USKorea #SupplyChains #GlobalTrade #Mining #Industry #Geopolitics
Advances in Aerospace Technology and Commercial Aviation Recovery
Insights into breakthrough aerospace technologies and commercial aviation’s recovery amid 2025 chall
Defense Modernization and Strategic Spending Trends
Explore key trends in global defense modernization and strategic military spending shaping 2025 secu
Tens of Thousands Protest in Serbia on Anniversary of Deadly Roof Collapse
Tens of thousands in Novi Sad mark a year since a deadly station roof collapse that killed 16, prote
Canada PM Carney Apologizes to Trump Over Controversial Reagan Anti-Tariff Ad
Canadian PM Mark Carney apologized to President Trump over an Ontario anti-tariff ad quoting Reagan,
The ad that stirred a hornets nest, and made Canadian PM Carney say sorry to Trump
Canadian PM Mark Carney apologizes to US President Trump after a tariff-related ad causes diplomatic
Bengaluru-Mumbai Superfast Train Approved After 30-Year Wait
Railways approves new superfast train connecting Bengaluru and Mumbai, ending a 30-year demand, easi