Seoul: A Seoul court on Wednesday dismissed an injunction request against Korea Zinc's plans to conduct a paid-in capital increase by third-party allotment, removing an obstacle to the company's investment in a critical metals refinery in Tennessee. The Seoul Central District Court rejected the request from Young Poong Corp. and MBK Partners, which was filed earlier this month after Korea Zinc announced plans to build the 11 trillion-won (US$7.55 billion) refinery together with the U.S. government.

According to Yonhap News Agency, to fund the project, the refined zinc producer had said it would sell shares worth 2.85 trillion won to a joint venture to be created with the U.S. Department of War. Young Poong and MBK Partners - two major shareholders of Korea Zinc - sought an injunction banning the issuance of new shares, claiming it was aimed at defending the management control of its chairman, Choi Yun-beom.

Korea Zinc countered that the share issuance was necessary to stabilize critical mineral supply chains and build a stable strategic partnership with the U.S. government.