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ASM signs MoU over Korean steel plant site

9th March 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Australian Strategic Materials (ASM) has signed a memorandum of understanding (MoU) with the Chungcheongbuk-do provincial government, in South Korea, for the location of its first metals plant.

The MoU covers the supply of utilities, administrative licences and permit procedures, including the Korean Standard Industrial Classification code for rare metals and rare earth metals, and includes a government grant in accordance with the Foreign Investment Promotion Act.

“This MoU, along with the strong support from the Korean Ministry of Trade, Industry and Energy and the Chunguk provincial government, provides ASM with confidence to build the metals plant in the Ochang Foreign Investment Zone,” said ASM MD David Woodall.

“With key Korean manufacturing companies like LG Chemical, Samsung SDI, SK Hynix and Hyundi Mobis within close proximity, we are confident that building our first metal plant in this well established industrial area will provide significant benefits.”

A recent scoping study into an initial 5 200 t/y metals plant in Korea, has demonstrated the feasibility for the project.

The internal scoping study estimated that the project would require a capital investment of between $35-million and $45-million, and could deliver annual revenues of between $180-million and $190-million, and annual earnings before interest, taxes, depreciation and amortization of between $45-million and $50-million.

The plant could be incrementally expanded to a capacity of over 16 000 t/y by 2024.

ASM has approved a $1.5-million investment into detailed design engineering for the plant, which will provide a fully engineered scope of works and further refine capital estimates, allowing the company to make a final investment decision by June this year.

Edited by Creamer Media Reporter

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