SEOUL, December 18 (AJP) - The South Korean government has given a positive assessment of Korea Zinc's plan to invest in a smelter in the United States, raising expectations that key procedures such as permits and financing could move more quickly.
The investment is also expected to strengthen Korea Zinc’s global footprint and deliver tangible progress in South Korea–U.S. cooperation on critical minerals, the government said.
Industry Minister Kim Jeong-gwan told reporters on Wednesday, after a policy briefing to President Lee Jae Myung, that Korea Zinc’s proposal to build a smelter in Clarksville, Tennessee, was “a strategic decision despite the financial burden.”
Kim said there had been “some consensus” on the project in August through a memorandum of understanding, adding that the investment would help South Korea secure a more stable supply chain for rare earths and other critical minerals.
Korea Zinc formally announced on Monday that it plans to invest about 11 trillion won alongside the U.S. government and other strategic investors to build the smelter.
Minister Kim said he understood that the company had carefully assessed the project’s costs and returns, and described it as an initiative welcomed by the U.S. Department of Commerce.
According to Korea Zinc, the planned U.S. smelter will produce 13 minerals, including base metals such as zinc, lead and copper, as well as antimony, indium and bismuth. Of those, 11 are included on the U.S. government’s 2025 critical minerals list.
According to South Korean credit rating agencies, the investment could strengthen Korea Zinc’s long-term business competitiveness, while also increasing its financial burden.
Korea Zinc said U.S. investors will not hold management control or decision-making authority in the entity that will build and operate the smelter.
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