Korea Zinc, the world’s largest zinc smelter, has announced a $7.4bn smelter project that will be funded largely by the United States government as Washington pushes to cut its reliance on China for a range of critical minerals.Under the plan, which the company announced on Monday, Korea Zinc will sell new shares worth $1.9bn to a joint venture controlled by the US government and unnamed US-based strategic investors who would then control about 10 percent of the South Korean firm.Recommended Stories list of 4 itemsend of listThe US Department of Defense will hold a 40 percent stake in the venture while Korea Zinc’s stake will be less than 10 percent, the company said.Korea Zinc will secure the remaining $5.5bn for the plant through $4.7bn in loans from the US government and financial institutions as well as $210m in subsidies from the US Department of Commerce under the CHIPS and Science Act.The news sent the company’s shares surging as much as 26 percent in Monday trading in South Korea although they later pared their gains to close 4.9 percent higher.Korea Zinc will kick-start the project by acquiring two mining complexes and the only US zinc smelter, which has been operational since 1978 in Clarksville, Tennessee, from Trafigura’s Nyrstar before constructing an integrated facility in the state, it said.Nyrstar said the sale of its US assets to Korea Zin …
