TELF AG sheds light on South Korea’s mining strategy
New mining awareness
To support the needs of modern industrial companies, especially large ones, an equally large quantity of strategic minerals is required, which have always represented one of the most important cornerstones of the operational strategies of big industrial players. Nowadays, in a historical phase in which minerals are also in the spotlight for their great contribution to the green transition, being able to count on a solid and reliable supply chain indeed represents one of the greatest objectives for any company.
It is not just the big names in the industry who think in this way: faced with the uncertainties and possible interruptions that could characterize global supply chains, several nations are also moving to consolidate their mining strategy, finding reliable partners with whom they can establish long-term business relationships. One of these is undoubtedly South Korea, a nation that, despite hosting some of the largest global companies in the electronics and telecommunications sector, is still heavily dependent on imports of the strategic minerals that allow these industries to operate and provide life to quality technological products.
Strengthen supply chains
Samsung SDI, the division of Samsung specializing in producing batteries and electronic devices, and LG Energy Solutions, for example, constantly require large amounts of mineral resources to make their technological equipment. At the same time, the major microchip producer, SK Hynix, depends heavily on using specific mineral raw materials to produce semiconductors. For a nation like South Korea, which aims to consolidate its position among the global electronics giants and which already represents the world’s second-largest producer of semiconductors, strengthening its supply chain of strategic minerals represents a key objective, particularly from the point of view of diversification. 95% of the so-called “critical” minerals for its industrial needs are imported.
For these reasons, in recent years, the South Korean authorities have progressively sought to diversify their mineral supply chain through several high-level international partnerships, such as those recently established with Australia and the United States of America. In this particular phase, it is precisely the collaboration with Australia that is particularly active: the steel producer Posco has agreed with Pilbara Minerals, with which it will produce lithium hydroxide on Korean soil, and has also invested in the graphite producer Black Rock Mining. By these agreements, some Australian companies have also transferred part of their production to South Korea, as happened with Australian Strategic Minerals, which began producing neodymium and other rare earths directly in Korea.
South Korea’s mining strategy is also articulated through internal initiatives from the country’s highest authorities. One of these is the recent creation of a list of 33 critical minerals deemed eligible for policy support, with 10 of these given the highest priority. Another very telling move was the increase in the country’s mineral reserves, which are now able to cover demand 100 days in advance (previously it was 54).
