Korea Zinc Inc (KRX: 0101030) just sent a large shipment of antimony to the United States for the first time. The supply shortage resulting from the ongoing trade war with China has made the Americans resort to finding other reliable sources.
A 20-ton bundle of the critical mineral, strapped to wood pallets aboard a cargo ship, is currently on route to Maryland. It is worth approximately US$1.2 million and is expected to arrive in early July.
In an announcement made on Jun. 16, the mineral and metal processor said that the antimony would be delivered to 10 corporations active in the American defence industry and other vendors. Korea Zinc plans increase its rate of shipments to the United States more than two-fold by 2026.
In Q1, Korea Zinc produced a record quantity of antimony at its Onsan Smelter — approximately 971 tons. Therein, it gets extracted as a byproduct during the zinc and lead smelting process through the use of proprietary tech.
The Seoul-based company is South Korea’s one and only producer of antimony, along with bismuth, indium and tellurium.
“Through this export, we expect to contribute to U.S. efforts in establishing a non-Chinese resource supply chain,” a company official stated.
The United States needs approximately 25,000 tons of the commodity annually. China’s decision to cut off its essential supply of the mineral in December, combined with the fact that there are no American mines in production, has made this a highly concerning issue.
Korea Zinc is a global leader in antimony production, producing approximately 4 per cent of the global supply. Its patented refining process yields a product with an exceptionally high level of purity.
Alongside Russia, Tajikistan, Bolivia and Turkey, South Korea has become a key source for the Americans as tensions with Beijing remain.
Antimony metal ready to be shipped at the Onsan Smelter. Photo credit: Korea Zinc
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