Korea Zinc "Virtually the Only Domestic Producer of Critical Strategic Minerals... Concerns Over Stability After MBK Acquisition"

Despite China's export controls, the supply chain of strategic minerals such as bismuth and antimony produced by Korea Zinc remains stable. However, industry insiders express concerns that the production and management of these critical resources could be disrupted if MBK Partners and Young Poong gain management rights.

According to the non-ferrous metals industry on the 20th, Korea Zinc is virtually the only company in South Korea producing bismuth and antimony, and it is reported to maintain a stable supply chain despite China's strategic mineral export control measures.

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Bismuth is a strategic material used in 4th generation small reactors and nuclear submarines, and it is a highly important item that requires government approval for each export case. Due to international environmental regulations limiting the use of lead in brass products, bismuth has attracted attention as a substitute material. In preparation for China’s rare earth export restrictions, the electronics industry also considers it as an alternative to neodymium magnets. Korea Zinc produces about 900 tons of bismuth annually and supplies it to key industries including the domestic defense industry.

Antimony is used as the main raw material for manufacturing antimony trioxide, which enhances the flame retardancy of textiles, plastics, and electronic devices. Korea Zinc accounts for 60% of the domestic antimony market. Recently, as the Chinese government designated gallium and germanium as strategic materials along with antimony and imposed export controls, market instability has increased. An industry official evaluated, "Korea Zinc is almost the only company in the country that can stably supply bismuth and antimony from the perspective of defense industry and strategic materials."

A Korea Zinc official stated, "The reason why the domestic impact was minimal despite China’s antimony export controls is that Korea Zinc supplies 60% of the existing market and possesses the technological capability to respond to additional demand," adding, "It is questionable whether Young Poong and MBK can manage and produce such strategic mineral resources."

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