Zach Nunn, a Republican member of the U.S. House of Representatives who is considered a close aide to President Donald Trump, sent a letter to the U.S. Department of Commerce expressing concerns that if MBK Partners takes control of Korea Zinc, China's influence in the critical mineral supply chain will increase. He noted that the U.S. government should recognize the Korea Zinc management dispute as a national security issue and respond proactively.
On the 21st (local time), Representative Nunn made public the letter he sent to Deputy Minister Daine Farrell of the U.S. Department of Commerce on his social media platform X (formerly Twitter). He was elected as the representative for Iowa's 3rd district with the support of President Trump. He also serves as the representative for the U.S. House of Representatives' special committee on 'U.S.-Chinese Communist Party (CCP) strategic competition,' discussing threats from China and response strategies.
Representative Nunn said, 'I have received reports that corporations linked to China are trying to expand their influence over Korea Zinc through hostile M&A led by MBK. If China secures influence over Korea Zinc, it will result in increased control of China in the critical mineral supply chain.'
China announced that it would control the exports of five key minerals—tungsten, molybdenum, indium, bismuth, and tellurium—after the U.S. imposed an additional 10% tariff on Chinese products. China has an overwhelming supply ratio for these minerals, and Korea Zinc meets most of the domestic demand for indium, bismuth, and tellurium. Korea Zinc supplies about 11% of the global demand for indium.
MBK has repeatedly clarified that the portion of Chinese capital among fund investors (LP) is only 5%. However, Representative Eric Swalwell also conveyed to the Department of Commerce late last year that if MBK acquires equity in Korea Zinc, it could lead to technology transfers to Chinese companies and the blockage of critical mineral supply chains from China.
Representative Nunn asserted that the Korea Zinc management dispute is directly linked to U.S. security issues. He said, 'Korea Zinc is a global leader in zinc smelting and possesses significant influence through its affiliates in the U.S. The U.S. must take resolute action to prevent growing Chinese influence in the critical minerals sector. This is a national security issue. If we do not take action now, we may find ourselves in a situation where we are drawn into the intentions of adversaries who wield economic power as a weapon.'