Trafigura, Korea Zinc to Establish $600 Million Nickel Joint Venture
- November 24, 2022
- Posted by: Quatro Strategies
- Category: Mining
Korea Zinc, a leading non-ferrous metals company, announced that it was swapping treasury shares with LG Chem and South Korean conglomerate Hanwha on renewable sourcing and green cycle business. The company also said it was establishing a joint venture with commodities trader Trafigura in a total investment worth $587.25 million for nickel smelting. Korea Zinc disclosed in a regulatory filing on Wednesday that it signed two stock swap deals worth 414.4 billion won: one with LG Chem and the other with Hanwha. Following the swap, Korea Zinc will take a 1.97% stake in LG Chem and a 5.5% stake in Hanwha. LG Chem in return will own a 0.47% stake in Korea Zinc.
In order to raise new proceeds, Korea Zinc will also divest treasury shares to Malta-based Urion Holdings under fully ownership of Trafigura, Morgan Stanley and Korea Investment & Securities for a total of 372.3 billion won.
The company and Trafigura will launch a joint venture (JV) in nickel smelting, the company said. Trafigura is the world’s major trading firm in commodities, including crude oil, metals, and minerals.
Through its stock swap deal with LG Chem, the two sides will enhance their joint exploration of metals that can be used in manufacturing cathode materials.
With Hanwha, Korea Zinc will enhance partnerships in various green energy areas such as hydrogen value chain, carbon capture, wind power and resource exploration. Hanwha will take part in Korea Zinc’s green energy projects, such as building facilities for ammonia cracking, carbon capture, hydrogen fuel cells, and hydrogen gas turbines.
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