Korea Zinc Owns 100% of US-Based Company
Korea Zinc has completed its acquisition of Igneo Holdings, now owning 100% of the company. This US-based firm collects electronic waste and extracts copper, gold, silver, and palladium during the smelting process. Extractive metallurgy is the method in which metals are obtained from their ores. In smelting, heat and a chemical reducer are applied to the ore to separate it from other elements, leaving only the metal. These metals are then used to create new technology.
The majority stake was bought in July by the global metals manufacturer through its affiliate, Pedalpoint. This purchase includes all three subsidiaries: Igneo France, Igneo Technologies, and evTerra Recycling. As reported by Igneo’s CEO and President Danish Mir, “this acquisition will accelerate the growth of Igneo, both organically and through M&A activity,” the statement noted. “We are very excited to embark on this journey under the guidance of Korea Zinc.”
Details of the Acquisition
In July of last year, Korea Zinc made a significant investment in Igneo with the purchase of a majority stake for $332 million. This deal is intended to increase its presence in the battery materials market. Choi Yun-Birm, Vice Chairman and CEO of Korea Zinc, expressed his belief that gaining a majority stake in Igneo Holdings would generate synergistic effects for its non-ferrous smelting operations, encompassing rechargeable battery materials, resource recycling, and renewable energy. “It will also contribute to our efforts to shift into renewable energy as per the RE100 initiative which we participated in last September,” he said.
It was followed by Morgan Stanley’s announcement in November that Korea Zinc had secured the remaining 24.5% of Igneo Holdings for an additional $110 million. The company operates an e-scrap metals recovery facility in France and is constructing an $85 million plant in Georgia. Also, evTerra Recycling, which is owned by Igneo, has been increasing its presence in the United States, hoping to secure a reliable supply to feed into the new copper and precious metals recovery facility.
KZ Looks to the Future
Korea Zinc has made some noteworthy progress within the e-scrap sector. Recently, LG Chem, the country’s leading chemical producer, signed an MOU with the metals conglomerate to ensure a steady supply of electric vehicle battery components. The agreement included a stock exchange between both firms valued at $190.5 million; LG Chem will own 0.47% of shares in KZ and KZ will have 1.97% of LG Chem’s stocks.
A renowned commodities trader, Trafigura, is currently in the late stages of negotiations with Korea Zinc to form a joint partnership. This collaboration would involve constructing a nickel smelter, and refining nickel sulfate for use in electric vehicle batteries. The deal also includes Trafigura investing $280 million into Korea Zinc.
Since 2019, when Choi Yun-Birm assumed the role of Korea Zinc’s chief executive officer, he has shifted away from the company’s long-standing relaxed approach. In his annual address at the start of 2020, he declared that Korea Zinc would venture beyond non-ferrous metal smelting, and into renewable energy, green hydrogen production, waste recycling, and rechargeable battery materials. Korea Zinc is making decisions that could have positive global impact, and enact change among other organizations.
