Dick wants close scrutiny for Korea Zinc deal

Queensland Deputy Premier and Treasurer Cameron Dick said the government would be watching the potential takeover of Sun Metals refinery owner Korea Zinc very closely. Private equity firm MBK Partners has teamed up with existing major shareholder Young Poong in the bid for control of Korea Zinc, sparking fears for job security and the future of the company's renewable energy initiatives in Queensland. Mr Dick said he had tasked Trade Investment Queensland to talk to the Consul for Korea in Queensland about the need for the transaction to be closely scrutinised and had also spoken with federal counterpart Jim Chalmers with a view to protecting jobs. "We'll be watching that very carefully," he said. "Obviously there are federal decision-making issues that will come into play if the transaction was to proceed, but we will continue to monitor that and we will make our position known very clearly." Management at Korea Zinc and its Australian subsidiaries - Ark Energy, Sun Metals Corporation, Townsville Logistics and Townsville Marine Logistics - are opposing the bid. They have voiced concerns about Young Poong’s record in safety and environmental management as well as fears a change in management led by MBK would lead to divestment in the company’s renewables project pipeline. Ark Energy chief executive officer and Sun Metals chief financial officer Michael Choi said a prospective change in leadership could seriously jeopardise the company’s performance and direction. “Management for Korea Zinc and its Australian subsidiaries do not support this bid and consider the prospective change in leadership is not in the interests of the company," he said. “Renewable energy development, especially renewable hydrogen, requires courage, commitment and significant investment. "Korea Zinc is focused on strategic and technological innovation, and decarbonising as quickly as possible, so we are investing heavily in the long game. "Our commitment to innovation and energy transition are testament to the values and visionary leadership of the current management, in particular Korea Zinc’s chairman Yun Choi. He has led the group to where it is today, and without that leadership I don’t see our current plans being realised." He also noted that Young Poong’s Seokpo smelter in South Korea had been plagued by safety and environmental issues. Federal Member for Kennedy Bob Katter said he feared that the takeover could have disastrous consequences for local jobs and Australia’s control over its critical resources. "If these are resources on Australian soil, we must assert our sovereignty. It's simply not acceptable to assume that foreign investors can sell or buy our critical assets without scrutiny,” Mr Katter said. Mr Katter said he would be making the Prime Minister aware of the situation and would insist that Foreign Investment Review Board intervene if there was a change of hands. CopperString 2.0 founder Joseph O'Brien, a Queensland Renewable Energy Council board member, said a change in direction from Korea Zinc could have significant impacts on renewables investment in Queensland. "For every aspect of Australia’s energy transition, maintaining the confidence of community is the most important challenge to get right and Korea Zinc, through Sun Metals and Ark Energy, has been a positive contributor from their early days trading in the National Electricity Market to improve their zinc refining process efficiency, to the largest embedded solar generation in Australia, their support of CopperString and their investment in hydrogen," he said. You may also like: https://industryqld.com.au/ark-energy-breaks-ground-on-townsvilles-sunhq-hydrogen-hub/

Dick wants close scrutiny for Korea Zinc deal

Industry Queensland

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