Korea Zinc to Benefit Even After U.S. Midterms; Choi Yoonbum-Led 'Project Crucible' Gets Green Light

Shinhan Investment & Securities: "Critical minerals stockpiling to continue even if Congress changes"
2029, when the smelter begins full-scale operations, expected to bring the greatest benefits
Whether long-term rare metals supply contracts are secured a key factor in valuation re-rating

An analysis has found that the outlook for the nonferrous metals and critical minerals sectors is likely to remain stable even after the U.S. midterm elections. Observers expect the U.S. supply chain expansion strategy centered on Project Crucible, led by current management including Korea Zinc Chairman Choi Yoonbum, to gain further momentum.

According to a report published by Shinhan Investment & Securities on November 3, Korea Zinc is pursuing Project Crucible, a joint smelter construction project under a strategic partnership with the U.S. government. The report said the company is expected to benefit significantly from policy support because the project aligns with policy goals that transcend party lines.

Korea Zinc Chairman Choi Yoonbeom (second from left) tours the Tennessee site where Project Crucible will be built with officials. Korea Zinc

Research Fellow Park Gwang-rae said, "On October 1, seven lawmakers from both parties introduced the Critical Minerals Commission Act," adding, "A blue wave, in which Democrats become the majority in both the House and Senate, would change only the tools for providing support, such as subsidies, stockpiling and price floors; the goal of developing 'critical minerals refining capacity independent of China' would remain unchanged."

He added, "Investment in critical minerals companies and stockpiling of critical minerals are based on executive branch discretion and existing appropriations, including $5 billion for supply chains and $2 billion for stockpiling under the One Big Beautiful Bill Act (OBBBA), and will continue even if control of Congress changes." He also noted that "Democrats support institutionalizing a critical minerals stockpiling system."

Park said 2029-2030 would be the period when the integrated smelter would reap the greatest benefits, before the Advanced Manufacturing Production Credit is phased down. Korea Zinc aims to begin full-scale construction of Project Crucible next year and start operations in stages in 2029. The facility plans to produce 13 strategic minerals, including zinc, lead and copper, as well as germanium, gallium and antimony.

"Korea Zinc is expected to benefit directly from U.S. policies," he said. "With Crucible and Nyrstar's U.S. assets, the company has secured an integrated production base in the United States." He added that he was watching "the increase in strategic value resulting from U.S. efforts to build a critical minerals supply chain independent of China, as well as the upgrading of the business portfolio with a focus on precious and rare metals."

He also said, "In the short term, silver and gold prices and treatment charges (TCs) for zinc concentrates will determine performance, while the start of commercial germanium sales is expected to create a new source of earnings." He added, "In 2027, progress on construction of the U.S. plant, the disbursement of policy funding, and whether the company secures long-term supply contracts for rare metals will be key factors in a valuation re-rating."

Korea Zinc reorganized its project execution structure by establishing the Crucible Business Division, a dedicated project unit reporting directly to Chairman Choi Yoonbum. At the time, Chairman Choi demonstrated his intention to oversee every stage of the project, from initial negotiations through completion of construction, through the organizational restructuring.

In a letter to shareholders last September, Chairman Choi said, "Korea Zinc is entering a new phase centered on Project Crucible." He emphasized, "This project will place the company at the center of the global critical minerals supply chain and serve as a foundation for sustainable mid- to long-term growth."

This content was produced with the assistance of AI translation services.