STX is showing strong performance. On the 31st of last month (local time), the U.S. Department of the Treasury announced implementation guidelines for the electric vehicle tax credit under the Inflation Reduction Act (IRA), which appears to be increasing interest in STX's raw material export-import business division. Going forward, electric vehicles using Chinese-made battery minerals or components are expected to be excluded from the credit. Amid the urgent need to secure alternative supply sources to replace Chinese minerals, attention is focused on the value of the Ambatovy nickel ore stake secured by STX.
As of 11:28 AM on the 4th, STX is trading at 7,970 KRW, up 19.85% from the previous day.
STX's sales are centered around four major businesses: energy, raw material export-import, machinery and supplies, and shipping and logistics. The energy business sells bituminous coal and petroleum, while the raw material export-import division trades in non-ferrous metals such as steel products, aluminum, zinc, and nickel.
STX is investing in the Ambatovy nickel ore development project through the Korea Ambatovy Consortium (KAC), formed together with the Korea Mine Reclamation Corporation and others. According to the joint investment contract and shareholder agreement of the Korea Ambatovy Consortium, the approved investment limit is 70.56 million USD. Including equity investments and loans for operating capital supplementation, a total of 69.544 million USD has been invested as of the end of the current period. To maintain the required equity ratio of over 25% under Madagascar's large-scale mining law for AMSA/DMSA, existing loan investments are being converted into equity.
Following a board resolution, 5.192 million USD was converted into equity to improve the financial structure of the Ambatovy nickel mine and smelter operating companies. This was done by converting loan investments in AMSA/DMSA, which are indirectly held through the Korea Ambatovy Consortium, into equity. Currently, excluding equity investments, the bond value related to the Ambatovy nickel ore development project is 24.44 billion KRW in long-term receivables, with a bad debt allowance of 7.425 billion KRW recorded for these receivables. Last year, the transaction volume with AMSA/DMSA was 9,810 tons of nickel (322.486 billion KRW) purchased, and the related accounts payable amounted to 1.711 billion KRW.
In November last year, STX signed a business agreement with Taebaek City to establish an industrial complex for processing core raw materials such as rare metals used in advanced technology products. Taebaek City has requested 190.9 billion KRW in national funding from the government to purchase the site and buildings of the Jangseong Mine. If the Jangseong Mine site is designated as a national industrial complex, the plan is to attract industries and companies related to 15 types of core minerals including lithium, tungsten, and titanium, fostering Taebaek as a new growth industry. Once developed as a national industrial complex, various benefits such as tax exemptions will be provided, which is expected to aid in attracting related companies.
The city has requested the inclusion of special provisions in the Gangwon Special Self-Governing Province Act to promote the creation of a core mineral national industrial complex and strategic utilization plans through the municipalization of the Seokgong site. The Goteosil Industrial Complex, which will begin construction in March this year, will also be developed as a core mineral industrial complex. With an investment of 36 billion KRW, the Goteosil Industrial Complex, covering 215,035 square meters at 255-1 Cheoram-dong, will be completed by 2024 and will house mineral processing and mineral resource specialized companies utilizing mineral resources. Last year, the city also signed business agreements with two companies, SK Ecoplant and STX.
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