On the 15th, shares of nonferrous metal smelter Korea Zinc jumped more than 13%, setting a 52-week high. The rally came after reports that the U.S. government and corporations will invest in Korea Zinc's local smelter.
As of 9:35 a.m. that day, Korea Zinc was trading at 1,642,000 won on the main board, up 124,000 won (8.17%) from the previous session. It surged to as high as 1,936,000 won intraday, setting a 52-week high.
Buying appears to have intensified on news that Korea Zinc will build a strategic minerals smelter in the United States worth 10 trillion won.
Korea Zinc will hold a board meeting that morning to decide whether to invest in the U.S. smelter. The investment is said to take the form of a joint venture (JV) between Korea Zinc and the U.S. side. A plan is being pursued for the U.S. Department of Defense and local defense corporations to participate as shareholders.
The investment is being seen as formalizing a U.S.-Korea "strategic resources alliance" to counter China's "weaponization of resources," as China dominates the global rare earth supply chain.