[In-Depth with CTOs] ⑮ "Competing with China by Achieving 99% Strategic Mineral Recovery Rate" Seunghyun Kim, Head of Onsan Smelter at Korea Zinc

Seunghyun Kim, Head of Onsan Smelter at Korea Zinc
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Editor's Note
Korea's industry is facing a comprehensive crisis. The management environment is deteriorating due to a combination of soaring raw material prices, global supply chain restructuring, and the US-China trade conflict. Ultimately, the key to overcoming this crisis lies in technology. Technology is the lifeline and raison d'etre of companies. This is why companies are placing greater emphasis on the role of the Chief Technology Officer (CTO). The CTO is no longer just responsible for developing new technologies, but has become a strategist who analyzes changing markets and presents a future vision for the company. Asia Economy met with CTOs from major domestic companies to hear about the core technologies and differentiation strategies that each industry is focusing on. Through the technology strategies of leading companies, we seek ways to enhance the competitiveness of Korean industry and create future value.

"If China produces 70% of the raw materials, our strategy is to recover 90%, or even more, to secure competitiveness. We are more than capable of competing with China."

On the 11th, Seunghyun Kim, head of Onsan Smelter at Korea Zinc, is being interviewed by Asia Economy. Photo by Korea Zinc

On the 11th, at Korea Zinc's Onsan Smelter in Ulsan, Seunghyun Kim, the smelter head and vice president, responded as above when asked how to secure competitiveness in a situation where China dominates the production of raw materials for strategic minerals. Kim stated, "It is difficult for domestic companies to win against China in terms of cost competitiveness," and added, "Ultimately, we must break through with technology. We will compete head-on by achieving higher recovery rates than China."

"Raising the recovery rate" is at the core of metal smelting. Korea Zinc is currently the only company in the world that smelts the three major metals?zinc, lead, and copper?using an integrated process. The company extracts all precious and rare metals, such as gold, silver, bismuth, and indium, that are mixed in zinc concentrates. The range of metals extracted reaches more than 10 types. Kim emphasized, "Typically, the recovery rate at zinc smelters is around 85%, but we have raised zinc to 98% and lead to 99%," adding, "It's almost 100%."

This achievement is backed by Korea Zinc's independently developed residue treatment process, known as the "Fumer Process." This technology, which recovers valuable metals from smelting by-products, dramatically reduces losses compared to conventional processes. In addition, Korea Zinc was the first in the world to commercialize the "TSL" non-ferrous metal smelting process. Through this technology, the company can recover both precious and strategic minerals from smelting by-products.

Kim explained, "The key to improving recovery rates is to experiment with all possible scenarios?such as sulfuric acid conditions, pressure leaching conditions, and high-temperature/high-pressure conditions?to find the optimal conditions." He added, "Initially, the operating rate of the zinc by-product treatment process was only 40-50%, but after dozens of process improvements, we have raised it to 95%, significantly reducing costs as well."

With the growing importance of strategic minerals, Korea Zinc's management strategy is attracting more attention than ever. Since last year, China has been tightening export restrictions on strategic minerals such as indium, gallium, and antimony amid the US-China tech supremacy competition. These metals, which are essential elements for the semiconductor and defense industries, have high added value even in small quantities. If an industry is dependent on a specific country for supply, the entire sector could be at risk. Kim said, "Antimony, indium, and tellurium have always been present in small amounts in concentrates, but most of them were discarded in the past. We have continued our research, even if the recovery rates were low."

Korea Zinc has set a goal to increase the recovery rates of key rare metals such as indium, bismuth, and tellurium by an additional 20-30% for each item starting this year. In particular, the company has already reached the stage of investing in a commercial plant for antimony. Kim said, "We expect recovery rates to increase further starting as early as July or August this year, and we are revising our plans to produce more than 120% of our originally projected targets."

Antimony ore, one of the strategic minerals produced by Korea Zinc, being loaded. Photo by Shim Sunga

He emphasized that improving recovery rates is directly linked to profitability. For bismuth, when production was at the 500-600 ton level, there was hardly any margin left after processing, manufacturing, and sales costs. However, once production exceeded 1,000 tons and prices rose three to four times, profit margins increased to over 70%. Kim explained, "We produce indium from by-products in zinc concentrates. Due to factors such as the US-China conflict, global supply prices have risen, making it a 'star performer' that generates more profit than Korea Zinc's main products."

Most of these metals are used in small quantities in the electronics and defense industries. Kim said, "As the world seeks to reduce dependence on Chinese minerals, companies specializing in recovery, like Korea Zinc, are receiving increasing interest. Several positive discussions are underway, particularly with partners in Europe and the United States."

Korea Zinc is also focusing on advancing eco-friendly process technologies. The company is expanding into "urban mining," extracting metals from municipal waste. In 2022, Korea Zinc acquired Igneo Holdings, a US-based company specializing in the collection and processing of electronic waste. The waste collected by Igneo is shipped to Korea, where it is reborn as metal at the Onsan Smelter. The entire process is based 100% on recycled resources.

Kim stated, "We have already secured technology to extract nickel, cobalt, and manganese from spent batteries. Once the market is established, we are ready to immediately invest in the necessary facilities."

Kim also expressed regret regarding the protection of technology. He said, "If the strategic minerals industry collapses in Korea, China and Russia will monopolize the world. Our engineers are risking their lives to conduct research, but their efforts are not being protected at the national level." He stressed, "To protect the mineral industry, which is a core asset for national security, it is urgent to establish legal and institutional safeguards for technology protection."