Katter warns North Queensland’s major zinc industry is at risk in foreign takeover
KAP Federal Member for Kennedy, Hon Bob Katter, has warned a hostile takeover of Korea Zinc by foreign bankers will spell disaster for North Queensland.
He said he had serious concerns upon learning about a $1.5 billion tender offer for [1]Korea Zinc shares by private equity firm MBK Partners and South Korea’s Young Poong.
As one of North Queensland’s largest employers, Sun Metals, owned by Korea Zinc, Katter fears that the takeover could have disastrous consequences for local jobs and Australia’s control over its critical resources.
"If these are resources on Australian soil, we must assert our sovereignty. It's simply not acceptable to assume that foreign investors can sell or buy our critical assets without scrutiny.” Mr Katter said.
“Korea Zinc has been a positive player in North Queensland for over two decades. They’ve built strong relationships with their workforce and the local community and have never taken a dividend out of Australia. However, history shows us what happens when multinational corporations are focused solely on profits, like Xstrata and Glencore, they replace owners that have social responsibility and start stripping the cash out. We saw it in Mount Isa, and I'm certain the same disaster will occur here.
“Allowing foreign bankers—who know nothing about mineral processing—to take over is like unleashing a bull in a China shop. The real question on the minds of Australians is, ‘Do we still control our own country, or are we just a playground for foreign moneymakers?’”
Mr Katter said he would be making the Prime Minister aware of the situation and will insist that Foreign Investment Review Board (FIRB) intervene if there is a change of hands.
He said that Australia risks losing yet another major industry, as Korea Zinc’s operations are under threat of being moved to Asia. He also raised concerns about safety breaches linked to Young Poong’s management, casting a shadow over the potential deal.
“Korea Zinc runs one of the largest zinc plants in the world, and if processing moves to Asia, we’ll lose another critical industry. Once again, Australia will be relegated to nothing more than a quarry for others. Worse still, this foreign banking firm comes with serious safety concerns, adding even more risk.
“Sun Metals is North Queensland’s largest private employer. Unlike Australian industry, it’s not burdened by endless regulatory restrictions, and it has access to capital from powerful banks and supportive governments. Australia needs to protect its own industries if we’re to survive in a world dominated by these economic giants.
“The FIRB needs to get its hands dirty. In the past, it has done little to protect our national interests. Apart from Woodside in the Timor Sea, I can’t name a single meaningful intervention by FIRB. I even suggested Parliament contract the work out to the local CWA ladies—they’d do a better job putting that money to good use than FIRB ever has.”
ENDS
[1]
https://www.reuters.com/markets/deals/private-equity-mbk-young-poong-launch-15-bln-tender-offer-korea-zinc-shares-2024-09-13/
