Australian Strategic Materials Ltd (ASX:ASM) (OTCMKTS:ASMMF) has signed a key MoU with the Chungcheongbuk-do (Chungbuk) Provincial Government and Cheongju-si City Government to locate its Korean Metals Plant (KMP) within the Ochang Foreign Investment Zone in South Korea.
The Chungbuk Provincial Government 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.
This MoU covering the company's first metals plant also includes a government grant, in accordance with Foreign Investment Promotion Act.
The Korean Metals Plant will initially produce high-purity neodymium-iron-boron powder and titanium powder
Significant benefits
ASM managing director David Woodall said: “The MoU, along with the strong support from the Korean Ministry of Trade, Industry and Energy (MOTIE) and the Chungbuk Provincial Government, provides ASM with confidence to build the metals plant in the Ochang Foreign Investment Zone.
“With key Korean manufacturing companies like LG Chemical, Samsung SDI, SK Hynix and Hyundai Mobis within close proximity, we are confident that building our first metal plant in this well-established industrial area will provide significant benefits.”
Provide key rare earth metals
Provincial governor Si-Jong Lee added: “To sustain the growth of the Chungcheongbuk-do economy, we strongly support this investment.
“ASM is establishing its Korean headquarters, R&D centre and metals plant in the Ochang Foreign Investment Zone.
“This will provide key rare earth metals to the Korean economy and local employment to revitalise our local economy.”
Korean Metals Plant
ASM’s Korean Metals Plant will initially produce high-purity neodymium-iron-boron powder and titanium powder using the innovative, low-energy metallisation process developed by ASM’s Ziron tech team.
Last week, ASM announced that it had completed an internal scoping study for the initial 5,200 tonnes per annum metals plant, with the results demonstrating the feasibility of the KMP.
Chungbuk
Chungbuk is 115 kilometres south of the Korean capital Seoul and 20 kilometres north of Daejeon, the site of the metalisation pilot plant.
The region has substantial existing infrastructure and a competent technical workforce.