Relevant Media, page-3491

https://www.mk.co.kr/news/politics/11132993

[translation]
[Exclusive] Exclusion of Korean companies from Dubbo project promoted as achievement of core mineral security partnershipReporter Gu [email protected]:2024-10-07 08:30:00Australia's ASM Rare Earth Project, a U.S. company instead of a Korean companyKwon Chil-seung, "As the MSP chairman, we should focus on real national interests."A mine in Western Australia [Reuters=Yonhap News]A mine in Western Australia [Reuters=Yonhap News]It has been confirmed that a Korean company has been excluded from one of the seven major achievements recently announced by the Mineral Security Partnership (MSP). Instead, a U.S. company takes over the role and proceeds with the project. Critics point out that South Korea, which is serving as MSP chairman, has not responded enough to this issue.According to Rep. Kwon Chil-seung of the main opposition Minjoo Party of Korea on Thursday, MSP announced that it has made substantial progress in seven of the 32 projects it is currently pursuing. Among them, ASM's rare earth mining project (Thebo project) was found to have been excluded from Hyundai Engineering and pursued by Vectel of the U.S.The Dubbo project is one of 23 pilot projects that MSP discussed policy support in March this year, which Korean companies have been working on for two years. In line with the project, the Korea Development Bank provided low-interest loans worth 22 billion won to KSM, ASM's Korean subsidiary.Hyundai Engineering was in charge of the basic design of the first phase of the Dubbo project, but the U.S. Export-Import Bank proposed $600 million in funding, leaving Vectel in charge of the basic design of the second and third phases.MSP is a cooperative initiative led by the U.S. to reduce China's dependence on key minerals and stabilize supply chains. Currently, participants include Korea, the G7 countries (U.S., Germany, the U.K., Italy, Japan, Canada, France), Australia, Finland, Sweden, Norway, India, Estonia and the EU. Korea was the second chair of MSP in March this year at the recommendation of the U.S., and has been serving since July 1.In response to the U.S.-led move, China is controlling exports of gallium, germanium, and graphite. In July 2023, the Chinese government announced export controls for gallium and germanium, which are key materials for semiconductor and OLED display panels, and from December 2023, it is implementing export controls for graphite, a key material for electric vehicle batteries.Kwon Chil-seung, 22nd member of the National Assembly (Hwaseong Fortress in Gyeonggi Province, Democratic Party of Korea)Kwon Chil-seung, 22nd member of the National Assembly (Hwaseong Fortress in Gyeonggi Province, Democratic Party of Korea)Representative Kwon Chil-seung emphasized, "I agree to participate in MSP to stabilize the core mineral supply chain, but when serving as the chairman in the future, we should focus on the actual national interest through strategic judgment and thorough preparation, not appearance.""China's Ministry of Commerce said it would not restrict South Korean companies' exports of key minerals, but a thorough response is needed to prepare for future changes," said Kwon Chil-seung, an official at the lawmaker's office. "We need to review whether participation in MSP brings real benefits and come up with measures to secure national interests in cooperation with the Ministry of Strategy and Finance."According to Kwon Chil-seung's office confirmed from Hyundai Engineering, Hyundai Engineering is currently seeking to resume projects using the Supply Chain Stabilization Fund at a time when cooperation between Vectel in the U.S. and ASM in Australia is being delayed.The Export-Import Bank of Korea said on Sept. 5 that it plans to launch a supply chain stabilization fund to support the acquisition of advanced strategic industries and key minerals, and invest up to 5 trillion won this year.