[The Editors' Verdict] The Corruption in Resource Development Must Stop Now

Bolivia is home to a salt lake called 'Uyuni.' Located about 200 km south of the capital La Paz, this area was once a sea but became a salt lake due to tectonic shifts. Lake Uyuni covers an area of approximately 11,000 km², which is larger than South Gyeongsang Province in Korea (10,552 km²). Thanks to its high altitude and abundant sunlight, it is also famous as a natural salt resource. Additionally, it is considered a tourist destination due to its mirror-like lake surface reflecting the blue sky and white clouds, creating a stunning landscape with the horizon.

For over a decade, Lake Uyuni has become a new target in the global resource market as a treasure trove of lithium. The amount of lithium deposits in the lake accounts for more than one-third of the world's total reserves. Uyuni, along with Chile's Atacama Desert salt flats and Argentina's Muerto, forms the 'Lithium Triangle.' South Korea entered this project around August 2009, dispatching a resource cooperation team centered on the Korea Mineral Resources Corporation (which was newly launched as the Korea Mining and Resources Corporation as of September 10). This was when lithium was emerging as the next-generation energy source and its price was soaring.

On August 12, 2010 (local time), a 'Lithium Carbonate Production Technology Report Meeting' was held in La Paz, Bolivia, using brine extracted from the Uyuni salt flats. Three institutions?the Korea Mineral Resources Corporation, Pohang Institute of Industrial Science and Technology under POSCO, and the Korea Institute of Geoscience and Mineral Resources?developed eight processes within six months. South Korea was the fourth country to submit a report. The results clearly showed that our technology was the best. Despite overcoming many difficulties and being the first to secure lithium extraction contract rights, the project was abandoned due to the resource development corruption issues during the Park Geun-hye administration.

Lithium is a key raw material for batteries. Lithium prices have risen 229.03% compared to the beginning of this year. According to Chinese foreign media, the price of lithium iron phosphate cathode materials increased from 35,000 to 40,000 yuan per ton (approximately 6.38 million to 7.29 million KRW) at the start of the year to 180,000 to 200,000 yuan (approximately 328.1 million to 364.5 million KRW) as of the 24th. Bloomberg reported that the lithium-ion battery market is expected to grow to $160 billion (187 trillion KRW) by 2025, surpassing the memory semiconductor market, which is valued at $149 billion (174.4 trillion KRW).

The achievements of resource development, painstakingly built through people, time, and passion in the past, were all lost due to the wrong decisions of the previous and current governments. Over the lost decade, not only money but also overseas networks and information exchanges disappeared. This is an enormous loss for the nation. An even more absurd policy now prevents resource development public enterprises (Mining Corporation) from making direct investments.

The value of overseas mine shares secured by the Mineral Resources Corporation during the previous government has risen tremendously. The major mines held by the corporation include nickel (Ambatovy, Madagascar), copper (Cobre Panama, Panama), and thermal coal (Wyang, Australia). These minerals have increased in value by an average of two to three times compared to the investment cost. However, recently, the corporation sold its entire 30% stake in the Santo Domingo copper mine in Chile to Canada's Castone Mining for $152 million. The corporation had invested about $240 million, selling the stake at about 60% of the original investment. It raises the question of who should be held responsible for this. The government's policy is to sell all assets held by the Mineral Resources Corporation, but this puts them at a disadvantage in negotiations with counterparties.

Risk-free resource development is absolutely impossible. If only failures are held accountable, resource development must be abandoned. The corruption in resource development must stop now.

Kang Cheon-gu, Adjunct Professor, Department of Energy Resources Engineering, Inha University

This content was produced with the assistance of AI translation services.