Newsroom

October 2, 2024

KAP Federal Member for Kennedy, Hon Bob Katter, has submitted a Question in Writing to the Prime Minster asking him to commit to ensuring the safe future of North Queensland by intervening on the hostile takeover attempt of Korea Zinc is successful.

In the Question in Writing, he said he had serious concerns about a $1.5 billion tender offer for ^[1]Korea Zinc shares by private equity firm MBK Partners and South Korea’s Young Poong.

He writes, “Are you aware, that a hostile takeover of Korea Zinc has been proposed by a private equity fund? And that such a takeover will spell disaster for North Queensland, with the potential loss of about 1,000 direct and indirect jobs and the demise of a company essential to Australia’s critical minerals growth and development?

“Will you immediately intervene and ensure that all action (will be) undertaken, including high level diplomacy, by the Australian Government to prevent the proposed hostile takeover of Korea Zinc and protect Australian jobs and industry?”

As one of North Queensland’s largest employers, Sun Metals, owned by Korea Zinc, Mr Katter said that the takeover could have disastrous consequences for local jobs and Australia’s control over its critical resources, as well as for the pipeline of future projects.

“Korea Zinc have been a positive player in the North for over 20 years. They have been extremely good corporate citizens, having built a strong relationship with their workforce and reinvested back into the community and industry. They have a long-term plan to stay here – Australia, particularly the North, is their future.

“Now, a bunch of slithering shareholder sharks that wouldn't know the difference between zinc and Kryptonite want to play Monopoly games – they will conquer and divide with disastrous outcomes.

“Apart from high-level government intervention and diplomacy, the only safeguard we have in Australia is a review by the Foreign Investment Review Board (FIRB) and these guys appear to rubber stamp whatever’s put in front of them.

“They have oversighted the sale of some of Australia’s most critical assets and locations, without the slightest scintilla of patriotism or Australianism.

“Now, let me be very specific; a group of share market sharks in Zurich took over the running of the corporation that was once Mt Isa Mines – proudly Australian owned. They knew nothing about mining - and as a result, we lost 2,000 jobs in Mt Isa and Townsville.

“Now, if the hostile takeover of Korea Zinc occurs, Townsville will lose another 1,000 jobs. Operations will be split up and moved overseas.”

Mr Katter said the Question in Writing followed an update provided yesterday by Michael Choi, Australian Principal of Korea Zinc, who said the noise being made in Australia’s media was having a serious impact on the ground in Korea and the Australia’s “stance” will play a part in the outcome of the takeover.

“KAP has taken our concerns to the highest level of government. High-level government intervention and diplomacy must be used to stop this takeover and keep Australian jobs and industry,” Mr Katter said.

“I hope and pray we can get the balance of power. And there's not the slightest doubt in my mind that if we do, we will go after those trying to strip the north of wealth and power - without grace or mercy.”