Seoul, Dec 26 (NationPress) A member of the United States Congress has voiced concerns regarding the takeover attempt by private equity firm MBK Partners Ltd for Korea Zinc, in conjunction with its largest shareholder, Young Poong Corp, because of significant issues pertaining to the supply chain of critical minerals, as stated by the zinc company on Thursday.

Korea Zinc has been engaged in a prolonged struggle to repel the takeover bid from the MBK-Young Poong coalition, which commenced the management conflict on September 13 by proposing a tender offer for an additional stake in the world's largest refined zinc smelter.

In reaction, Korea Zinc, backed by Bain Capital, a US-based firm, undertook a substantial stock buyback.

In a letter addressed to Jose Fernandez, US undersecretary of state for economic growth, energy, and the environment, US Rep. Eric Swalwell (D-CA) stated, 'Korea Zinc has upheld its status as a global leader in collaborative efforts to broaden and diversify the supply of critical minerals and to shield these supply chains from PRC influence.'

PRC refers to the People's Republic of China. Korea Zinc plays a crucial role in US-led global initiatives aimed at reducing China's dominance over the supply of metals essential for the energy transition.

Due to the focus and investment history of MBK, Swalwell mentioned in his letter that it is plausible that entities based in or financed by PRC could be welcomed in various transactions if the MBK faction successfully acquires Korea Zinc.

'This may lead to a transfer of technology to PRC entities and the potential dismantling of a significant global participant in the collaborative United States-Korea initiative to insulate and expand critical minerals supply chains from PRC interference,' Swalwell articulated.

The congressman urged the undersecretary to engage with his counterparts at Korea's foreign and trade ministries 'to ensure that this transaction undergoes careful review, taking into account multiple factors, including economic repercussions and our shared national security interests.'

When approached by Yonhap News Agency, MBK stated that they had no comment on the letter.

Last month, the Seoul government included Korea Zinc's high-nickel precursor manufacturing process on the list of national core and high-tech strategic technologies at the company's request.

With this classification, any exports of this technology or foreign investments involving mergers, acquisitions, or joint ventures will necessitate approval from the trade ministry, as mentioned in the letter.

The Young Poong camp presently controls 40.97 percent of Korea Zinc, while Korea Zinc Chairman Choi Yun-beom and associated parties own approximately 34 percent of the company.

Korea Zinc intends to convene a shareholders' meeting on January 23 to vote on the appointment of two groups of new board members proposed by both Korea Zinc and the Young Poong faction.