Korea Zinc Co. has unveiled plans for a $7.4 billion U.S. smelter project backed by Washington, a move that comes as the world’s largest zinc refiner remains locked in a bruising takeover battle at home.
The Seoul-based company said Monday it will issue $1.9 billion in new shares to a joint venture called Crucible JV LLC, which will be controlled by the U.S. government and undisclosed American strategic investors. The Department of Defense will hold a 40% stake in the venture, while Korea Zinc’s own interest will remain below 10%.
The remaining $5.5 billion will come from $4.7 billion in government and institutional loans, plus $210 million in Commerce Department subsidies under the CHIPS and Science Act.
Korea Zinc shares surged as much as 26% on the news before paring gains to close up 4.9% at ₩1,592,000 (US$1,079).
The timing raises questions. Chairman Choi Yun-beom has spent more than a year fending off a hostile bid from private equity firm MBK Partners and shareholder Young Poong Corp., which together control nearly 50% of Korea Zinc’s stock. Young Poong characterized the U.S. deal as an attempt by Choi to secure a “white knight” to maintain control.
The Tennessee-based facility, which will also process Nyrstar USA’s existing Clarksville plant that Korea Zinc is acquiring, is expected to begin operations between 2027 and 2029, producing zinc, copper, gold, silver, and strategic minerals including antimony, germanium, and gallium.
