Korea Zinc said on the 15th it will invest to strengthen its future growth engine by building an integrated nonferrous metal smelter in the United States. The expected investment is about 10.9 trillion won.
It said it will raise $1.94 billion (about 2.8508 trillion won) through the foreign joint venture JV "CrucibleMetals" established on the 11th, and secure the remaining funds through U.S. government policy finance and subsidies, loans from financial investors (FI), and direct investment.
The financing will be a paid-in capital increase by third-party allotment, with strategic investors (SI) including the U.S. Department of Defense, the Department of Commerce, and defense strategic companies participating. Once the paid-in capital increase is completed, the JV will secure about 10% equity in Korea Zinc.
Korea Zinc said it decided to invest to respond to expanding global supply chain risks and rising demand for nonferrous metals and critical minerals in the United States, and to preempt the North American market.
It added that the U.S. government asked Korea Zinc to participate in order to reorganize the supply chain.
The smelter's annual target production is ▲ 300,000 tons of zinc ▲ 200,000 tons of lead ▲ 35,000 tons of copper ▲ 5,100 tons of rare metals.
The investment schedule runs from today through the end of 2029.