SEOUL (dpa-AFX) - Korea Zinc Co., Ltd. is advancing plans to construct a strategic mineral smelter in the United States. The company intends to bring in the U.S. Department of Defense and local defense companies as shareholders, according to several media reports.
The reports describe this as 'an unprecedented case of the U.S. government directly holding shares in a South Korean private company,' formalizing what they call a 'strategic resource alliance' between South Korea and the U.S. to counter China's 'weaponization of resources' in the global rare earth supply chain.
The reports further noted that Korea Zinc is expected to hold a board meeting on the 15th to discuss the establishment of the U.S. smelter and a plan for the U.S. Department of Defense and defense-related investors to directly invest in the company.
According to the reports, the U.S. side's direct investment plan may involve acquiring shares in Korea Zinc through mechanisms such as third-party paid-in capital increases. If approved, the proposal would elevate Korea Zinc to a key partner in the U.S.-led rare earth supply chain, which is being positioned as independent from China.
Media coverage also indicates that Korea Zinc plans to establish a joint venture with U.S. stakeholders to proceed with the smelter construction.
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