Gwanghae Mining Corporation Officially Launches on the 15th... Strategic Core Minerals Including Rare Earths to Have Dedicated Organization

Integration of Korea Mine Reclamation Corporation and Korea Resources Corporation
Abolishment of the 'Direct Overseas Resource Development Investment' Function, the Main Cause of Poor Performance

[Sejong=Asia Economy Reporter Joo Sang-don] The newly established Korea Mine Reclamation and Mining Corporation, formed by integrating the Korea Mine Reclamation Corporation and Korea Resources Corporation, will officially launch on the 15th. The direct overseas resource development investment function, which was the main cause of poor performance in the past Korea Resources Corporation, will be abolished. The new corporation will focus on expanding the stockpiling of rare metals and strategic minerals such as rare earth elements to stabilize the supply chain of key minerals.

According to the Ministry of Trade, Industry and Energy on the 3rd, the Corporation Establishment Committee recently deliberated and resolved matters related to the establishment of the new corporation. To this end, the committee held a total of 11 meetings and 8 executive recommendation committee meetings over the past six months.

The main tasks of the newly established Mine Reclamation and Mining Corporation will include mine reclamation prevention and restoration, coal industry support, coal briquette subsidies for low-income households, and loans for alternative industries in abandoned mine areas, which were previously performed by the Mine Reclamation Corporation. It will also take over the support for private mineral resource development, development fund loans, and mineral stockpiling and trading functions of the Korea Resources Corporation. The direct overseas resource development investment previously conducted by the two corporations will no longer be performed. Instead, the mineral supply chain stabilization function, previously handled by the Resources Corporation, will be strengthened.

An official from the Ministry of Trade, Industry and Energy explained, "As the demand for rare minerals necessary for batteries and eco-friendly industries such as rare earth elements is increasing, we are working to stabilize the supply chain and expand stockpiles. At the same time, support will be strengthened for private sector efforts to secure rare metals."

The Mine Reclamation and Mining Corporation reduced its organizational size by about 20% through the integration of overlapping and redundant functions of the two existing organizations. The previous structure of ‘6 headquarters, 1 institute, 1 division, 1 office, 37 departments, 5 branches, 3 centers, and 3 offices’ (57 units) will be reorganized into ‘4 headquarters, 1 institute, 1 division, 29 departments, 5 branches, 3 centers, and 3 offices’ (46 units). The workforce will decrease from 719 to 680, a reduction of 39 employees. The Coal and Anthracite Support Project Group under the Mine Reclamation Corporation will be reorganized into a department, and an Overseas Business Management Group will be newly established. Additionally, parts of the domestic and overseas headquarters of the former Korea Resources Corporation will be integrated into one Mineral Resources Headquarters, while the roles of the Mine Reclamation Headquarters and regional headquarters will be expanded. The Overseas Business Management Group will be responsible for the sale of overseas assets.

Hwang Gyu-yeon, the current president of Korea Resources Corporation, has been nominated as the first president of the new corporation. The government plans to appoint the president, standing audit committee members, and non-standing directors in line with the enforcement date of the Korea Mine Reclamation and Mining Corporation Act (on the 10th).

The new corporation’s headquarters will be located in the Korea Resources Corporation building in Wonju, Gangwon Province. All personnel of the new corporation, except for the Overseas Business Management Group, will be stationed there. The nearby Mine Reclamation Corporation building will mostly be leased out as a revenue-generating business to improve financial soundness.

Park Jin-gyu, Vice Minister of the Ministry of Trade, Industry and Energy and chairman of the Corporation Establishment Committee, said, "Although it was a short period of six months, through cooperation between the two organizations and efficient operation of the establishment committee, the new corporation will launch on the enforcement date of the law. We hope that, led by the president nominee, the remaining preparations will be completed well to create an opportunity for innovation in the domestic mine reclamation and mineral resource industry, contribute to regional economic revitalization, and ensure the security of the key mineral supply chain." The inauguration ceremony of the new corporation will be held on the 15th after the approval of the articles of incorporation, registration of establishment, organizational arrangement, and system setup.