Korea Zinc to Raise 380 Billion KRW Through Paid-in Capital Increase to Acquire Australian Wind Power Plant

Acquisition of 30% Stake in the Largest Wind Power Plant in the Southern Hemisphere
Current Progress Rate 80%... Commercial Operation Scheduled for August Next Year

Korea Zinc has finalized a funding plan to acquire a 30% stake in the Macintyre Wind Farm, a subsidiary of Arc Energy, an overseas subsidiary of Arc Energy.

Goryeo Zinc Onsan Smelter. [Photo by Goryeo Zinc]

On the 3rd, Korea Zinc held a board meeting and announced that it would conduct a paid-in capital increase for its Australian subsidiary to actively promote the renewable energy sector, part of its future new business 'Troika Drive.'

The paid-in capital increase amounts to approximately 423 million Australian dollars (about 380 billion KRW). An additional 420 million Australian dollars needed for the acquisition and operation of the wind farm will be raised through borrowings by the Australian subsidiary. The funds will be channeled through Sunmetal Holdings, Korea Zinc's Australian business control tower, and then provided to Arc Energy and Arc Energy Macintyre.

On the 12th of last month, Arc Energy, Korea Zinc's overseas subsidiary, decided to invest in a 30% stake in the Macintyre Wind Farm under construction in Queensland, Australia, through its affiliate Arc Energy Macintyre. The scale of the investment is about 670 billion KRW.

The Macintyre Wind Farm is the largest wind farm in the Southern Hemisphere and is expected to begin full commercial production after August next year. Compared to other large-scale wind farms, it has advantages such as ▲proximity to power demand areas ▲strong transmission infrastructure ▲competitive wind speeds and economic feasibility.

The Macintyre Wind Farm is located only about 170 km from Brisbane, a major power consumption city, and uses a transmission system connecting Queensland and New South Wales, allowing easy power supply to nearby areas. This transmission system is currently connected to the strongest transmission infrastructure (330 kV) in Queensland. The strong wind speeds during the high electricity price morning and evening hours also enhance its economic viability.

Meanwhile, the Macintyre Wind Farm is being developed by Acciona Energy, a global renewable energy company based in Spain, and Korea Zinc plans to supply part of the generated electricity to Sunmetal, a smelter it operates in Australia.