- Australian Strategic Materials (ASM) is building its presence in Korea with a proposed metals plant in the country’s Ochang foreign investment zone
- The memorandum of understanding was signed with the Chungcheongbuk-do Provincial Government and the Cheongju-si City Government
- It covers the supply of utilities, administrative licences and permit procedures and includes a government grant
- The plant will initially produce high-purity neodymium-iron-boron powder and titanium powder
- Australian Strategic Materials is down 1.22 per cent to $5.26 per share
Australian Strategic Materials (ASM) is building its presence in Korea with a proposed metals plant in the country’s Ochang foreign investment zone.
A memorandum of understanding, signed with the Chungcheongbuk-do Provincial Government and the Cheongju-si City Government, covers the supply of utilities, administrative licenses and permit procedures, including the Korean Standard Industrial Classification code for rare metals and rare earth metals.
It also includes a government grant, which falls under the country’s Foreign Investment Promotion Act.
“ASM is establishing its Korean headquarters, R&D centre and metals plant in the Ochang Foreign Investment Zone,” said Provincial Governor Si-Jong Lee.
“This will provide key rare earth metals to the Korean economy and local employment to revitalise our local economy,” he added.
Located 115 kilometres south of Korea’s capital Seoul, the metals plant will initially produce high-purity neodymium-iron-boron powder and titanium powder using ASM’s proprietary, low-energy metallisation process.
“With key Korean manufacturing companies like LG Chemical, Samsung SDI, SK Hynix, and Hyundai Mobis within close proximity, we are confident that building our first metal plant in this well established industrial area will provide significant benefits,” said David Woodall, Managing Director of Australian Strategic Materials.
The feasibility of the planned plant was outlined in an announcement released earlier this month, which is expected to generate between US$180 million (roughly A$235 million) and US$190 million (roughly A$248 million) each year.
The plant is also expected to expand from 5200 tonnes per year to 16,000 tonnes per year by 2024.
Australian Strategic Materials is down 1.22 per cent to $5.26 per share at 10:43am AEDT.