Australian Strategic Materials (ASX:ASM) has inked a memorandum of understanding (MoU) with the Chungbuk Provincial Government and Cheongju, City Government to locate its first metals plant (KMP) within the Ochang Foreign Investment Zone in Korea.
ASM, whose titanium powder was recently approved for 3D printing in South Korea, said the MoU covers supply of utilities, administrative licenses and permit procedures, including the Korean Standard Industrial Classification code for rare metals and rare earth metals.
According to the company’s statement, it also includes a government grant, in accordance with Foreign Investment Promotion Act.
Last week, ASM announced it had completed an internal scoping study for the initial 5,200tpa metals plant, which confirmed the feasibility of the project.
The 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.
ASM Managing Director, David Woodall, said the plant will provide key rare earth metals to the Korean economy and employment opportunities across the region.
“This 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,” he continued.
“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.”