Two Koreas open mine for graphite in North

PYONGYANG-The two Koreas announced the opening of a joint graphite mine in North Korea yesterday, with the South expected to import more than half of the mine’s annual production for the foreseeable future.
The joint venture between South Korea’s state-run resources development company, Korea Resources Corp., and North Korea’s Myeonggi Corp. will produce 3,000 tons of graphite per year, 1,830 tons of which South Korea will import annually for the next 15 years. The amount is equivalent to 20 percent of the South’s domestic demand.
The two companies invested $10.2 million in the mine, which is located in Jeongchon, South Hwanghae province, and is estimated to hold 6.3 million tons of graphite.
Graphite from the mine can be used in batteries, brake linings for cars and fireproof or heat-resistant materials. The first batch of graphite is to arrive in South Korea in the second half of the year.
The preliminary joint development agreement was reached in March 2003, and the formal pact followed four months later. The mine development got underway in March 2004 as South Korea transferred mining materials and other equipment to the site.
“This joint mine will create significant synergy by combining the South’s finances and technology with the North’s natural resources and labor,” said Park Yang-soo, the president of Korea Resources.
North Korea is estimated to have at least 220 types of minerals that can be commercially developed, and has substantial deposits of molybdenum, graphite and tungsten. The country also has about 1,000 tons of gold, 1.2 million tons of nickel and 3 billion tons of iron ore.
This adds up to around 2,287 trillion won ($2.4 trillion) worth of minerals, 24 times larger than what is estimated to be in South Korea.
Industry leaders from the two Koreas held talks yesterday here to discuss further cooperation in resources development. They agreed in principle to promote trust and mutual prosperity, rather than profit-seeking projects. They expected to make similar joint ventures in the future.

by Hong Byeong-gee