Commodity trader Trafigura and Korea Zinc signed an agreement to jointly invest US$140 million to establish an “all-in-one” nickel refinery in South Korea.
The refinery will be capable of processing a range of feedstocks including nickel matte and mixed hydroxide precipitate (MHP) with its integrated pyro-hydro process.
According to Trafigura, the investment will be used to build the nickel refinery located in Ulsan and finance its initial working capital.
Alongside the investment agreement, the two parties also entered a long-term agreement to secure a reliable supply of feedstock to the all-in-one nickel refinery.
Under the contract, the amount of nickel to be supplied by Trafigura will range from 20,000 to about 40,000 tonnes per annum and Trafigura will also have the off-take right in relation to the feedstock contract.
“We’re delighted to be working with Korea Zinc on this strategically important project, which underscores the importance of metals in the energy transition,” said Gonzalo De Olazaval, Trafigura’s Global Head of Metals and Minerals. “Through our global reach and scale, Trafigura’s metals business is well placed to support the development of new refining capacity.”
Trafigura is one of the world’s largest suppliers of commodities, active in metals and minerals, oil and gas and power. The group employs over 12,000 people in 156 countries.
Korea Zinc, a global leader in non-ferrous metal production, produces 21 kinds of valuable metals and chemical products by processing various feedstock such as zinc and lead concentrates, low-grade ore and scrap metals.