Korea Zinc to acquire 5% stake in Canada's The Metals Company
Under the $85 million agreement, the company secured the right to purchase additional shares at a predetermined price, contingent upon TMC's future market value and growth potential.
Korea Zinc looks to counter the impact of the US decoupling from the Chinese supply chain for critical minerals with TMC by refining the resources extracted by TMC in South Korea and global markets. TMC is gearing up to mine polymetallic nodules — round, hard deposits found on the ocean floor's abyssal plains, containing metals such as manganese, iron, nickel, cobalt and copper.
In April, Trump signed an executive order aimed at boosting the local deep-sea mining industry. This includes expedited issuance of permits for seabed mineral exploration and development and joint development projects with private companies and other countries.
According to Korea Zinc, this investment will secure raw materials for electric vehicle batteries that are not subject to US Foreign Entity of Concern regulations, which effectively prohibit sourcing from China. This minimizes the risk of being excluded from US tax benefits.
Through its subsidiary Kemco, the company is also building a comprehensive nickel smelting facility scheduled to begin operations by 2027, where it plans to process TMC's resources. In addition, Korea Zinc intends to explore further cooperation with TMC, including constructing a nickel smelting plant in the US and other facility investments.
'We have been reviewing our collaboration with TMC since last year, confirming the business potential and economic feasibility,' stated a Koea Zinc official. 'The new partnership between Korea Zinc and TMC is significant, as it establishes an independent and reliable nickel supply chain in the US which is expected to greatly enhance Korea Zinc's position in the market.'
Headquartered in Canada, TMC is listed on the US Nasdaq and is actively pursuing a manganese nodule exploration project in the Clarion-Clipperton Zone of the Eastern Pacific Ocean.
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