Korea Zinc to Purchase Peruvian Mine for $47.5 Million To Ensure Supplies

Korea Zinc Co., the world’s second- biggest zinc smelter, said it will buy a mine in Peru for $47.5 million to secure stable supplies of raw materials.

The South Korean zinc producer will wholly own the Pachapaqui mine, whose operations have been suspended because of financial difficulties, and plans to gradually expand capacity, the Seoul-based company said today in a regulatory filing.

Korea Zinc will take all of the mined resources from the site, located 240 kilometers (149 miles) north of Lima, it said. The mine also produced copper, lead and silver, it said.

Shares of Korea Zinc added 3,500 won, or 1.2 percent, to 289,000 won as of 12:54 p.m. in Seoul trading today, outperforming a 0.9 percent decline in the local benchmark Kospi index.

To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net; Bomi Lim at blim30@bloomberg.net

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