We are the only place in the world where zinc, lead, and copper plants are consolidated. Exchanging intermediate byproducts between each plant during smelting is the secret to becoming No. 1 globally in technology. (Kim Seung-hyun, head of the Korea Zinc Onsan smelter)
After about a 40-minute drive from Ulsan Station on the 5th, the Korea Zinc Onsan smelter appeared with the tops of three plants intricately consolidated. At this smelter, located in the Onsan National Industrial Complex, we were able to see the reality of the integrated process, born with the world's only technology, on a vast 1 million-square-meter site.
From each plant's smokestack, a hazy plume rose, and inside, the sound of motors running was loud. Still, there were not many workers. Automation has already progressed to a considerable level. Recently, they also brought in "Spot," a quadruped walking robot developed by Boston Dynamics, to one plant. After testing, if results are good, they plan to expand its introduction to all plants.
Meeting reporters that day, Kim Seung-hyun opened by saying, If for the past 53 years Korea Zinc has focused on nonferrous smelting, now it is time to break through the limits.
Kim introduced the "troika drive" that Chair Choi Yun-beom is focusing on. Specifically: ▲ resource circulation ▲ secondary battery materials ▲ renewable energy. Korea Zinc plans to use 100% clean energy in its projects underway in Australia by 2040. Surplus energy will be brought to Korea. They plan to compress and transport hydrogen in the form of liquid ammonia.
Kim said, We aim to solve issues facing the global smelting industry, such as high power consumption and mass waste generation, adding, This is Korea Zinc's new vision that will lead the next 50 years.
Korea Zinc last year posted record results since its founding, with consolidated sales of 16.5812 trillion won and operating profit of 1.2324 trillion won.
Onsan smelter employees said this was thanks to the "integrated process." As zinc, lead, and copper are smelted, byproducts can be freely exchanged to produce precious metals and strategic minerals, boosting profitability.
Korea Zinc's zinc recovery rate reaches 98%. Even the final sludge is sold to cement companies, making waste practically at "0 (zero)."
For example, at the Onsan smelter, 100 tons (t) of indium are additionally produced each year during zinc and lead smelting. Indium is a key raw material needed for semiconductor substrates, solar power, and electric vehicles.
Indium extracted through the integrated process is assigned to the electronic materials team, and gold and silver go to the precious metals team. The Onsan smelter also produces semiconductor sulfuric acid. Samsung Electronics and SK hynix are both customers of Korea Zinc. Korea Zinc plans to expand semiconductor materials processes within Plant 1 in the first half of this year.
Jeon Jong-bin, head of the electronic materials team, said, Indium production itself is not large globally, and added, Demand for semiconductor sulfuric acid has risen, so we decided to expand.
Korea Zinc has recently experienced several favorable developments at once. Last year's surge in gold and silver prices helped push operating profit to an all-time high.
While researching gallium and germanium plants—both strategic minerals—and investing to establish new processes, the U.S. government proposed a smelter. As a result, Onsan plans to preemptively produce gallium and germanium starting at the end of next year.
Gallium and germanium are strategic minerals used in semiconductors, communications, and military equipment, and China had supplied almost all of them. But with China banning exports to the United States starting in Dec. 2024, supply was effectively cut off. Korea Zinc is the one that broke through this.
An all-in-one nickel smelter is nearing completion. Nickel is a key material for electric-vehicle batteries. It was initially scheduled to start operating this year, but due to the EV chasm (a stagnation before market expansion), it was postponed to next year. A feature of the Onsan smelter's nickel process is that none of the feedstock is from China.
Kim Jong-hak, head of the casting team, said, We are sourcing feedstock from outside China to differentiate from other companies, adding, With an annual production plan of 45,000 tons, we are free from China's raw material export controls.
Antimony and bismuth, used in semiconductors and military equipment, are also strategic minerals that Korea Zinc is producing. Antimony freshly produced that morning still felt hot even after half a day. With a high melting point of 600–700 degrees, it is mainly used as a flame retardant. Flame retardancy means making it hard for fire to catch.
One ton of antimony is currently around 40 million won, and about 300 tons are produced per month. Half goes to domestic corporations such as Pohang Iron and Steel and Hyundai Steel, and half is exported.
Hwang Yun-geun, head of precious metals team 2, said, Indium, antimony, and bismuth have no ore concentrates. They all come only as zinc, lead, and copper smelting extracts.
With a smelter being built in Clarksville, Tennessee, Korea Zinc expects the Onsan smelter to make another leap. The U.S. Smelter is half the size of the Onsan smelter, and 60 engineers will be dispatched locally.
The U.S. Smelter will produce only zinc, lead, copper, and 11 strategic minerals. They plan to introduce advanced processes—artificial intelligence (AI), Robotics, automation, and digitalization—at the newly built smelter in the United States.
Kim said, There are risks in introducing advanced technology to plants already in operation. But a new plant allows immediate application, so we believe the experience of building the U.S. smelter will also help modernize the Onsan smelter later.