KORES Strives to Evolve into
Global Natural Resources Major
Looks to take over companies related to the development of natural resources
Korea Resources Corporation (KORES) is seeking to incorporate companies related to the development of natural resources in order to grow and globalize.
New KORES President Kim Shin-jong told reporters on August 13 that KORES will raise its authorized capital from the current 600 billion won to 3 trillion won and the size of its assets from 853.8 billion won to 6 trillion won by 2012.
Kim released a plan for developing KORES into a global major, which calls for securing 38 overseas production businesses by investing 5 trillion won in order to make it a global top 20 natural resources company by 2012.
He said a bill will be submitted in October to amend the Act on the Korea Resources Corporation, which would raise its authorized capital and extend its business areas, which are now limited to the prospecting and developing of natural resources, to include such business areas as refining and distribution.
Kim said KORES's functions will be revamped to
concentrate on the development of overseas natural resources in order to realize the goal of raising its own development of six strategic minerals -- bituminous coal, uranium, iron, copper, steel and nickel -- to 38 percent, but such nonessential business sectors as underground water and aggregate will be curtailed or abolished.
Earlier, the KORES President said in his inaugural speech, "The government is working on a plan to secure growth engines to make KORES a global major with its own development rate of natural resources of 26 percent and approximately 100 billion won in operating income by 2010."KORES marks 41 years in its bid to build up a stable supply base of energy and natural resources, essential for the development of the national economy.
Established with 1 billion won of capital 41 years ago, KORES has contributed to the nation's economic strides by fulfilling its goals of developing and utilizing domestic natural resources and importing any shortfall of natural resources from abroad. KORES has now evolved into a full-fledged company specializing in exploring for natural resources overseas as it is undertaking 22 projects in several countries, including the Ambatovy Nickel Project in Madagascar, the world's third largest, by capitalizing on its accumulated know-how and experience. As a result, KORES has managed to raise its own development rate for the six strategic minerals to 18.5 percent. Korea depends on foreign countries for 92 percent of the energy and mineral resources it uses.
"We take the initiative in invigorating the mineral resources industry by accelerating the development of domestic resources and last year we began to stockpile rare minerals to brace for price hikes and supply shortages,"Kim said.
"Despite these achievements, external and internal business conditions push us to make more concerted efforts. As you know, countries are scrambling to secure mineral resources due to soaring demand from such emerging economies as China and India, the revival of nationalism over mineral resources and global majors"monopolies and oligopolies." "We have to take the offensive in searching for minerals in five oceans and six continents,"Kim said.
Marking the 40th anniversary of its establishment last year, KORES announced a vision to realize the goal of developing KORES into a top 20 mineral major.
"The next three or four years will be crucial for our corporation. We have to break the mold in order to meet high demands from customers and make another leap in an era of digitalization and a changing business environment,"he added.
KORES will have to hurry up in building a database on the global minerals market and securing experts for facilitating project financing as well as real-time information on the domestic demand of minerals. nw
(right) KORES President Kim Shin-jong delivers a speech during his inaugural ceremony on Aug. 13. KORES President Kim exchanges greetings with KORES staff members.