Yulho announced on the 26th that it has completed the capital payment for its subsidiary, Yulho Tanzania. With the completion of the capital payment, Yulho's mining development business, which will be centered in Tanzania, Africa, is expected to be fully launched.
In January, Yulho announced that it would establish a 100% subsidiary, Yulho Tanzania, to carry out mining development and trading businesses for key minerals such as nickel, lithium, and graphite, which are essential raw materials for secondary batteries. The capital for establishing Yulho Tanzania is approximately 5 million USD (about 6.6 billion KRW).
Yulho Tanzania plans to conduct mineral trading business locally, build networks, and rapidly accumulate related know-how, while simultaneously exploring mines for acquisition. The company explained that it aims to maximize profitability by acquiring mines of high value-added minerals such as nickel and directly mining and refining them. To this end, Yulho recently established a cooperative system with the Korea Institute of Geoscience and Mineral Resources (KIGAM).
Tanzania is a region rich in various key minerals for secondary battery cathode and anode materials. It has recently emerged as a new alternative for secondary battery material companies aiming to reduce dependence on China. According to the U.S. Geological Survey, as of 2022, about 18 million tons of graphite are deposited in Tanzania, ranking it sixth in the world.
Considering this, the Korean government is also promoting the conclusion of Economic Partnership Agreements (EPA) with three African countries, including Tanzania. Additionally, Tanzania is characterized by high social and political stability and is strengthening government-level support and responses for mining.
A Yulho official stated, “With the completion of this capital payment, we plan to accelerate the mining development and trading business locally in Tanzania. Along with the existing used battery recycling business, Yulho will leap forward as a key company in the upstream raw material sector through the mining development business.”
He added, “The mineral trading business is expected to create a short-term improvement effect on the company’s financial structure. The mining development business is anticipated to significantly contribute to enhancing corporate value and establishing a stable profit structure in the mid to long term.”
Currently, company officials are conducting final due diligence for mine acquisition locally in Tanzania. They are also promoting the establishment of a research institute for mineral analysis in cooperation with the Tanzanian government.
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