Air quality, greenhouse gases and water resources among factors assessed

$7.4 billion project to produce 11 critical minerals and semiconductor-grade sulfuric acid

Full permitting still under way with additional steps remaining

Korea Zinc Chairman Choi Yun-beom tours the company's planned US smelter site in April. [Korea Zinc]
Korea Zinc Chairman Choi Yun-beom tours the company's planned US smelter site in April. [Korea Zinc]

Korea Zinc's planned 10 trillion won ($7.23 billion) smelter in the United States has cleared a major hurdle after the US government determined the project would have no significant environmental impact, paving the way for faster permitting.

Korea Zinc announced Monday that the US Department of War had completed its final environmental review of Project Crucible under the National Environmental Policy Act and issued a Finding of No Significant Impact, or FONSI.

Project Crucible calls for building an integrated nonferrous metal smelting facility in Clarksville, Tennessee. The plant would produce zinc, lead, copper and gold, along with 11 critical minerals designated by the US government — including antimony, gallium and germanium — as well as semiconductor-grade sulfuric acid.

The review examined potential effects from the construction and operation of the smelter across a broad range of areas, including air quality and greenhouse gas emissions, water resources, biological and cultural resources, waste and hazardous materials, traffic, and socioeconomic impacts. The Department of War concluded, after consulting with relevant agencies, that the project would not significantly affect the surrounding environment.

A FONSI means the environmental review found no likelihood of serious environmental harm, allowing the project to proceed without advancing to a more intensive, separate environmental impact statement process. The finding will also factor into future government support decisions and individual permit reviews — including whether the Department of War will provide financial backing and whether the Tennessee Valley Authority will commit to power infrastructure support.

However, the decision does not complete all permitting required for the project. Of the 10 disclosed approval steps, four have been completed so far.

"This outcome reflects our proactive engagement with relevant agencies from the early stages on design, site selection, processes and environmental measures," a Korea Zinc official said. "Project Crucible carries high expectations from many stakeholders — including the governments of South Korea and the United States, and the state of Tennessee — and we will do our utmost to ensure the project proceeds without setbacks and achieves success."

Project Crucible was designated in April as a FAST-41 project, a federal regime that consolidates and tracks environmental reviews and permitting schedules across multiple federal agencies for major infrastructure and resource developments. It was the first project designated under the system after Tennessee and the Federal Permitting Improvement Steering Council signed an MOU to cooperate on permitting.

Tennessee Governor Bill Lee said at the time: "With Project Crucible's designation as a FAST-41 project, we are accelerating critical infrastructure development, improving government efficiency and advancing this project without unnecessary delays."

Korea Zinc plans to apply the multi-metal smelting technology and operational expertise it has built at its Onsan smelter in South Korea to the new US factory. The new facility is designed around a base model roughly half the size of the Onsan smelter, with some operational practices from Korea Zinc's Sun Metals smelter in Australia also incorporated. Raw materials are to be sourced primarily from the United States and the broader North American region.


kwater@heraldcorp.com