Korea Zinc's Board Set to Review U.S. Smelter Venture Plans

SEOUL, Dec 15 (Reuters) - The board of Korea Zinc is scheduled to convene on Monday to deliberate a proposal to construct a smelter in the United States, aimed at refining essential minerals through a joint venture with the U.S. government and private enterprises, according to a source familiar with the matter. Total investments are projected to reach 10 trillion won ($6.78 billion). Reports from South Korea's Yonhap News Agency indicate that the U.S. government and participating companies will invest 2 trillion won for a 20% stake in the venture, with the facilities intended to produce antimony and germanium. A representative from Korea Zinc was not available for immediate comment. China currently leads in the supply of crucial minerals, including antimony and germanium, which are integral to telecommunications, semiconductors, and military technology. On December 3, 2024, Beijing imposed an export ban on these minerals to the U.S. in response to Washington's actions against China's chip industry, although the ban has been suspended since November. As the world's largest zinc smelter, Korea Zinc also manufactures antimony ingots, alongside other metals and minerals. In August, the company partnered with Lockheed Martin to produce germanium using materials sourced outside China starting in 2028, ensuring a reliable supply for the defense and space sectors. Following media reports of the joint venture plans, Korea Zinc's shares surged by 7.5%. ($1 = 1,475.5400 won) (Reporting by Hyunjoo Jin, Jack Kim; Editing by Ed Davies)