Korea Zinc announced on the 16th that it acquired approximately 5% of the equity in The Metals Company.
On the same day, Korea Zinc acquired a 5% equity stake in TMC for $85 million (approximately 116.5 billion won). The company noted that the contract includes the right to purchase additional shares at a certain price if TMC's market value and growth potential are confirmed in the future.
TMC is headquartered in Vancouver, Canada, and is listed on the Nasdaq. It is pursuing a manganese nodule exploration project in the Clarion-Clipperton Zone (CCZ) in the Pacific Ocean.
Manganese nodules are round, hard lumps found on deep-sea plains, containing metals such as manganese (Mn), iron (Fe), nickel (Ni), cobalt (Co), and copper (Cu). The company explained that manganese nodules are gaining attention as sources of cobalt and nickel, which are used in electric vehicle batteries. Korea Zinc stated that through this investment, it plans to strengthen business connections and cooperation by procuring manganese nodules harvested by TMC and refining them both domestically and internationally.
TMC aims to obtain mining permits within the year. The two companies are also expected to discuss additional collaborations, including investment in facilities in the United States. Korea Zinc noted, "The equity investment in TMC is expected to have a positive impact on resource security cooperation between the United States and Korea and also enhance the negotiating power of the South Korean government with the U.S."
Korea Zinc remarked, "We invested in TMC to proactively secure promising resource suppliers in response to resource weaponization such as the export controls on strategic minerals and rare earths, and we expect this to greatly contribute to supply chain cooperation and economic security between Korea and the United States."