[The Era of Mineral Hegemony] Canada’s ‘Golden Egg Project’... But Korea Mine Reclamation Corporation Is Just a Pipe Dream

Lost Decade in Resource Development... Overseas Projects Blocked for Gwanghae Mining Corporation
Contact with Canadian Resource Development Company... Proposal for Lithium Exploration Projects
Support Promised if Collaborating with Domestic Firms... Investment Not Allowed Under Current Law

Overview of Narrabri Mine, Australia

[Asia Economy Sejong=Reporter Lee Jun-hyung] It has been confirmed that the Korea Mine Reclamation Corporation recently received a proposal for lithium and cobalt exploration projects from a Canadian resource development company but gave up direct investment due to current laws that prohibit new investments. The Mine Reclamation Corporation plans to engage in indirect cooperation through technical support if the Canadian company collaborates with domestic firms. As the global supply chain instability intensifies competition for resource dominance, there are calls for the government to actively pursue overseas resource development through legal reforms.

According to comprehensive reporting on the 28th, the Mine Reclamation Corporation held a meeting with Jonathan Buick, CEO of Idaho Champion, a Canadian resource development company, in Seoul at the end of last month. CEO Buick introduced the lithium and cobalt exploration projects his company is promoting and expressed willingness to cooperate with Korea. During their visit, CEO Buick and other Idaho Champion executives separately met with domestic battery companies to further discuss resource development cooperation plans.

Idaho Champion views strategic collaboration with Korea as feasible. Korea needs to secure minerals mined in North America stably in the future due to the U.S. Inflation Reduction Act (IRA), which provides tax benefits only for North American electric vehicles. Idaho Champion is advancing large-scale lithium and cobalt exploration projects in North America. The exploration rights secured by Idaho Champion cover approximately 68,695 km² in Idaho, USA (cobalt), and 161,999 km² in Quebec, Canada (lithium). Lithium and cobalt, along with nickel, are considered core materials for secondary batteries.

However, the Mine Reclamation Corporation cannot participate in Idaho Champion’s exploration projects. This is because the government prohibited new investments in overseas resource development when it integrated and launched the Mine Reclamation Corporation last year. The Mine Reclamation Corporation Act, enacted last year, omitted the phrase "overseas mineral resource development" that was included in the previous Mineral Resources Corporation Act. Accordingly, the Mine Reclamation Corporation plans only to provide technical support if domestic battery companies participate in Idaho Champion’s exploration projects.

There are calls to revive the overseas resource development functions of the Mine Reclamation Corporation to respond to the supply chain crisis. Since private companies find it difficult to actively engage in overseas mineral resource exploration projects with high initial risks, the government needs to play a "catalyst" role. Professor Kang Cheon-gu of the Department of Energy and Resources Engineering at Inha University said, "If a project participated in at the exploration stage succeeds, the economic feasibility is maximized," adding, "In resource development, a collaborative structure is needed where public enterprises handle exploration and development stages, and private companies handle production."