Overview
- Korea Zinc’s board approved a plan to build an integrated smelter in Clarksville, Tennessee, and a 2.85 trillion won share issuance to the U.S.-controlled Crucible JV that would hold roughly 10% of Korea Zinc.
- The U.S. Department of Defense is slated to own about 40% of the JV; financing includes $4.7 billion in loans and $210 million in Commerce Department subsidies, with Korea Zinc providing the remainder.
- The project will proceed via the acquisition of Nyrstar’s Clarksville site, with construction targeted for 2027 and phased commercial operations from 2029 producing 540,000 tonnes annually, including zinc, lead, copper and strategic minerals.
- U.S. officials welcomed the plan as a national security move, with Commerce Secretary Howard Lutnick saying the United States will receive priority access to Korea Zinc’s global production starting in 2026.
- Major shareholders MBK Partners and Young Poong filed for a court injunction to block the new share sale, sending Korea Zinc shares lower after an initial surge, and South Korea’s industry minister said potential use of a bilateral investment fund could be discussed with Washington.