STX Signs Rare Metal Development MOU in Mongolia

STX announced on the 27th that it has signed a business agreement for rare metal resource development with the Korea Institute of Geoscience and Mineral Resources and the Mongolian resource development and investment company SG Group.

Mongolia is considered a resource-rich country possessing crude oil, coal, lithium, tungsten, copper, gold, and iron ore. It is also estimated to hold 16% of the world's rare earth deposits, which are used as materials for advanced products. With borders adjacent to Russia and China, it has geopolitical advantages as a supply chain hub.

Vice Chairman Oh Geuril of SG Group (from left in the photo), Heo Cheolho, Director of the Mineral Resources Research Division at the Korea Institute of Geoscience and Mineral Resources, Jeon Hoseok, General Manager of the ODA Project at the Korea Institute of Geoscience and Mineral Resources, Kim Sejun, Deputy Director of the Korea Institute of Geoscience and Mineral Resources, Park Sangjun, CEO of STX, and Cho Byeongjin, Head of the Resource Business Division at STX, are posing for a commemorative photo after the signing ceremony in Ulaanbaatar, Mongolia, on the 21st.
[Photo by STX]

The agreement ceremony held on the 21st was attended by Park Sang-jun, CEO of STX; Kim Se-jun, Deputy Director of the Korea Institute of Geoscience and Mineral Resources; Jeon Ho-seok, General Manager of the ODA Project at the Institute; and Orgil, Vice Chairman of SG Group. On the same day, the Institute also signed a local mining development business agreement with Arbijih Chahiol, a Mongolian lithium mine operator.

STX agreed with the parties to cooperate throughout the entire development process, focusing on lithium and tungsten, including exploration, production, processing, and sales. They will also receive technical advice and sample analysis testing support from the Rare Metal Cooperation Center jointly established by the Korea Institute of Geoscience and Mineral Resources and the Mongolian government.

The company plans to process the rare metals such as lithium and tungsten secured in Mongolia at a factory within the core mineral industrial complex in Cheoram-dong, Taebaek-si, Gangwon Province, which is scheduled to begin construction by the end of this year, and supply them to domestic and international demand markets. Previously, the company signed a business agreement with Taebaek-si last year to move into the local industrial complex.

An STX official said, "With the opening of the Rare Metal Cooperation Center scheduled for 2027, expectations for local resource development and production are rising, and we will ensure the success of STX's core mineral business in Mongolia."